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Commons Chamber

Volume 424: debated on Tuesday 2 July 1946

House of Commons

Tuesday, July 2, 1946

The House met at Half past Two o'Clock

Prayers

[Mr. SPEAKER in the Chair ]

Private Business

BRECONSHIRE COUNTY COUNCIL BILL [Lords]

Read the Third time, and passed, without Amendment.

Banbury Corporation Bill

As amended, considered; Standing Order 205 suspended; Bill to be read the Third time forthwith.—[ The Deputy-Chairman. ]

Bill accordingly read the Third time, and passed.

LONDON MIDLAND AND SCOTTISH RAILWAY BILL [Lords]

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

CALEDONIAN INSURANCE COMPANY BILL [Lords]

Read a Second time, and committed.

House of Commons Members Fund

Copy ordered,

"of an extract from the Minutes of the 33rd Meeting of Trustees, held at the House of Commons on 25th June, 1946, and of a statement by them relative to the position of the Fund."—[ Sir C. MacAndrew. ]

Aliens (Naturalisation)

Address for

"Return showing (1) Particulars of all Aliens to whom Certificates of Naturalisation have been issued and whose Oaths of Allegiance have, during the year ended the 31st day of December, 1945, been registered at the Home Office; (2) Information as to any Aliens who have, during the same period, obtained Acts of Naturalisation from the Legislature; and (3) Particulars of cases in which Certificates of Naturalisation have been revoked during the same period (in continuation of Parliamentary Paper No. 13 of this Session)."—[ Mr. Simmons. ]

Oral Answers to Questions

Scotland

Children's Health, Aberdeen

asked the Secretary of State for Scotland if he will issue a statement, based on the reports of the school medical officers or otherwise, giving, for the year 1938, the figures showing the increases in the weight, height and health of boys and girls of 5 and 3 years of age, respectively, in the city of Aberdeen, as compared with boys and girls of the same ages in the same city in the years 1945 and 1946.

A statement on the lines desired by the hon. and learned Member has been prepared for the school years ended 31st July, 1939, and 31st July, 1945. Figures for the current school year are not yet available. Since the statement consists entirely of figures, I will, with permission, circulate it in the OFFICIAL REPORT.

Is the hon. Gentleman satisfied that the precautions now being taken for the safeguarding of the health and for promoting the development of children are satisfactory?

Is the statement referred to a comprehensive statement covering the whole of Scotland?

No, Sir, the figures I have taken out for the purpose of this Question are the figures for Aberdeen alone.

Following is the statement:

Heights and Weights of School Children aged 5 and 13 in Aberdeen City for years shown.

Boys.

Girls.

1938/39.

1944/45.

1938/39.

1944/45.

Average height in inches—

Aged 5 years 3 months

42·0

42·2

41·7

41·9

Average height in inches—

Aged 13

58·6 *

58·4†

59·6 *

59·3‡

Average weight in pounds—

Aged 5 years 3 months

41·0

42·0

39·3

40·1

Average weight in pounds—

Aged 13

90·9 *

89·4†

94·4 *

93·4‡

* Average Age 13 years 6 months. Average Age 13 years 6 months.

† Average Age 13 years 4 months.

‡ Average Age 13 years 5 months.

Children's and Young Persons' Homes

Fasked the Secretary of State for Scotland how many homes and institutions for orphans and adopted children there are registered in Scotland, run by voluntary institutions or private persons; what are their names and addresses; how many children do they contain and of what ages, respectively; and how they are supervised or inspected, so as to ensure the welfare of the children concerned.

At present there are in Scotland 117 voluntary homes for children and young persons, and I am sending to my hon. and learned Friend the information for which he asks about each of these homes. All the homes are inspected by the Secretary of State's Inspectors at least once each year.

Would it not be better to take these voluntary institutions under public control, and would that not be a more thorough and less expensive way of carrying out the work?

My right hon. Friend is at the moment awaiting the report of the Clyde Committee on these matters, and I think it would be unfair of me to anticipate what he may do when he gets the report.

Does that Committee deal with the question of taking under public control voluntary institutions of this kind?

Yes, Sir, it deals with the treatment of children deprived of a normal life.

Is it not a fact that many of these homes have a well deserved reputation, and that they have done good service to the community in the past?

Public Libraries

asked the Secretary of State for Scotland if he is aware of the disabilities by which burgh public libraries are prevented from giving an efficient service; that burghs are limited to an expenditure not exceeding a 3d. rate; that they lack statutory authority either to take joint action, or to amalgamate with other library authorities, or to cooperate by lending books outside their area; that burghs in county areas are assessed in respect of county library purposes as well as burgh library functions; and if he will introduce legislation to remedy these matters and to unify library legislation in Scotland.

The answers to the first four parts of the Question are in the affirmative. As differences of opinion on important points still exist the Secretary of State intends to give to the Advisory Council on Education as soon as it is reconstituted a remit on the subject before legislation is prepared.

Can the Under-Secretary tell us when this reconstitution will take place?

Rate Collections

asked, the Secretary of State for Scotland the amounts of local rates raised, after deductions for derating, from the counties of Argyll, Dunbarton, Inverness, Perth, Ross and Cromarty, respectively, for the last available year, showing the figures for the large burghs and cities separately.

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

Following is the answer:

The estimated amounts of local rates collected during the year to 15th May, 1946, based on particulars supplied by the local authorities, were:

Furniture (Local Authority Powers)

asked the Secretary of State for Scotland if local authorities who provided beds and other furniture for new municipal houses, prior to the war, will be given similar facilities for the houses now in process of erection.

Local authorities already have comprehensive powers for the supply of furniture to tenants of their houses. I am anxious that these powers should be used to the fullest extent that the supply position permits, and the attention of local authorities has already been drawn to the matter as regards the furnishing of both permanent and temporary houses in the post-war programme. Apart from this, new houses are being equipped with built-in fitments on a much greater scale than before the war, to the considerable benefit of the tenants concerned.

Does that mean that local authorities will be able to provide beds without getting permission from the Board of Trade?

The hon. Member had better put that question down to the President of the Board of Trade. I am answering in regard to the Housing Acts. I am not the Minister who allocates furniture.

Motor Lorries (Building Firm)

asked the Secretary of State for Scotland whether he is aware that the firm of Messrs. Dunn, Uddingston, are unable to carry out their housing contracts for want of motor lorries; and if he arrange with the Board of Trade to ensure expedited deliveries of motor lorries to this firm.

I am aware of the difficulty in this case, on which I have been in correspondence with my hon. Friend. My Department have taken all possible steps through the Ministry of Supply to ensure priority delivery of the vehicles required as soon as they can be made available by the manufacturer.

Is the Minister aware that it is fully a year since this firm made application for four special lorries suitable for its purposes? Up to the moment the Board of Trade are earmarking everything for the export trade, with the result that it is impossible for the firm to meet its contracts

I have taken up this matter, and I can assure my hon. Friend that I am pressing it. In view of his supplementary question, I will again communicate with the Minister of Supply to see whether the position cannot be eased.

Is there no coordination between Departments in reference to all the surplus Army vehicles, or must we have all this circumlocution before we can get vehicles?

I have to answer for housing in Scotland. I have nothing to do with the disposal of motor vehicles.

Education (Control Examination)

asked the Secretary of State for Scotland if he will state for the last convenient date the number of pupils in Scotland who sat for the control examination; and how many of these were graded as C pupils.

The schemes for regulating promotion from primary to secondary courses of education in the several education authority areas in Scotland are not uniform. A number make no provision for the holding of a control examination, and in those that do, corresponding gradings are not always designated alike. I regret, therefore, that it is not practicable to give the information desired.

Does that mean that no comprehensive figure can be given of the grading into A, B and C categories of pupils for the various authorities in Scotland?

There is no uniformity of method adopted by the education authorities to examine children when passing from the primary to the secondary stage.

Faslane Harbour

asked the Secretary of State for Scotland if he is aware of the proposal to lease the harbour works and equipment at Faslane, Dunbartonshire, to a firm of shipbreakers; and if this proposal is provided for in the regional plan of Sir P. Abercrombie.

My right hon. Friend the Minister of Transport has this proposal under consideration and has consulted the other Departments concerned. The county council of Dunbarton as local planning authority have also been asked for their observations on the proposal.

As regards the second part of the Question, the report of the consultant to the Clyde Valley Regional Planning Committee recommends that if the proposal to utilise the works and equipment at Faslane for purposes of shipbreaking is proceeded with there should be certain safeguards in the interests of amenity, and this recommendation is being considered.

Will the Minister tell us what Faslane is being used for at the present time?

The hon. and gallant Member would have to put that Question down to the Department which has occupancy.

asked the Secretary of State for Scotland what steps he proposes to take to prevent the pollution of the Gareloch, Dunbartonshire, in the event of Faslane Harbour being used for shipbreaking purposes.

My right hon. Friend understands that the shipbreakers will be required, as a condition of the contract, to avoid pollution of the Gareloch. If any pollution did occur which constituted a nuisance in the sense of the Public Health Acts, he has no doubt that appropriate action would be taken by the county council.

Is the Minister aware that it is quite impossible to pollute this inland water without contravening the Public Health Acts and ruining this place for residential purposes?

A clause has been inserted in the contract against any form of pollution.

Will the Minister impress on the Ministry of Transport the importance of bilges of ships to be broken up being cleaned out in deep water?

As I understand it, if contractors do anything which causes pollution they are definitely breaking the clause in their contract.

New Towns Committee (Secretary)

asked the Secretary of State for Scotland if it is proposed to appoint a secretary to the New Towns Committee recently set up; will the post be advertised; and what is the salary attached to the office.

No doubt my hon. Friend has in mind the Committee on New Towns appointed jointly by my right hon. Friends the Secretary of State and the Minister of Town and Country Planning, under the chairmanship of Lord Reith. In accordance with the usual practice the secretarial work of the committee is being carried out as part of their official duties by civil servants appointed by the Ministers.

May I take it that there will be no definite appointment made from outside?

Electricity Supplies, Outer Hebrides

asked the Secretary of State for Scotland if he is aware of the dissatisfaction in the Outer Hebrides at the delay by the North of Scotland Hydro Electric Board in undertaking electrification in that area; and what immediate steps are contemplated.

My right hon. Friend is aware from statements in the Press that dissatisfaction has been expressed. The Board have prepared and submitted to the Electricity Commissioners for approval schemes for the distribution of electricity in Lewis and in North and South Uist and the adjacent islands. A scheme for Harris and Barra will be sent to the Electricity Commissioners shortly. The Board have also, in order to provide supplies quickly, bought surplus R.A.F. diesel generating plant at Stornoway and Benbecula.

While thanking the Under-Secretary for the very helpful reply, may I ask him to explain why the Hydro Electric Board must go outside the Outer Hebrides and leave them till last? What is the objection to going there now?

I cannot say why the Board decide one place before another. They have now submitted schemes for approval, and we hope that there will be no undue delay.

Is it not a fact that the scheme is being held up by differences between the rival claims of the industrial areas as against the Highlands and Islands? When will these differences be resolved in such a way as to give fair treatment to both?

I do not think that they are being held up. The Board have submitted schemes to the Electricity Commissioners for their approval. The Electricity Commissioners then make recommendations to the Secretary of State, and it is for him to advertise and give the necessary 40 days for objections.

Water Supplies, Western Isles

asked the Secretary of State for Scotland the reasons for delay in initiating water supply schemes in the Western Isles; and whether, in view of the lack of hygienic and adequate piped supplies of water in that area and the effect in delaying house building in most areas, he will expedite the water schemes for the islands.

A water supply improvement scheme for Stornoway Burgh has been approved and work is likely to begin within the next two months. Outline schemes of water supply for the islands have also been submitted, and these are at present being examined in consultation with the county councils. The Secretary of State hopes shortly to be in a position to approve these schemes in principle and to make an offer of grant under the Rural Water Supplies and Sewerage Act of 1944.

Can my hon. Friend give any indication when these schemes are likely to be approved in view of the urgent need of houses in the Western Isles?

As regards the rural areas, we propose to press on with these schemes as speedily as possible. I will convey to my right hon. Friend my hon. Friend's point of view on this matter.

Unemployment, Western Isles

asked the Secretary of State for Scotland whether he is aware that over 2,000 able-bodied males are unemployed in the Western Isles, including over 7 per cent. on the Stornoway register; what decisions have been reached by the inter-departmental committee with a view to providing employment on public works schemes in the isles; and if he will make a statement.

The answer to the first part of the Question is in the affirmative. As the Secretary of State indicated in reply to my hon. Friend's Question on 4th June, interdepartmental examination of the position is proceeding urgently and schemes at a total cost of over £200,000 are under immediate consideration. I shall communicate with my hon. Friend as soon as it is possible to arrive at definite decisions on these proposals.

Is my hon. Friend aware that the Western Isles have now reached the highest level of unemployment which they have ever suffered, and will he undertake with his right hon. Friend to initiate schemes of public works, held up during the war, so as to provide employment?

In view of the very serious situation which applies not only to the Islands but to Scotland as a whole, will the hon. Gentleman persuade his right hon. Friend to put down the question of unemployment in Scotland on the agenda of the Cabinet?

In view of the great shortage of labour on the mainland, will the hon. Gentleman consider finding employment at harvest time for some of these people?

We have any amount of agricultural work of our own to do, and we cannot afford to export labour.

British Army

Detention Barracks

asked the Secretary of State for War if he will now make a statement on future policy in regard to military detention barracks, with special reference to modernisation of buildings, educational facilities and recruitment of staff.

Yes, Sir. Particulars of the general policy and plans are now available. I have prepared a detailed summary which I will place in the Library.

Will my right hon. Friend consider circulating the answer in the OFFICIAL REPORT for the information of the public generally?

Will the Minister assure us that in no circumstances will the amenities of those undergoing detention have priority over improved barrack conditions for those who conduct themselves in a disciplined manner?

But can my right hon. Friend assure us that his reforms will go at least as far as the purely ad hoc wartime recommendations of the Oliver Committee?

I think that the House can be reassured that, while there are detention camps, my chief object is to achieve reform rather than punishment. I think that when hon. Members see the report, they will agree that I have made very great efforts and changes to that end.

Following is the summary:

MILITARY PRISONS AND DETENTION BARRACKS. POST-WAR PRINCIPLES AND LAYOUT IN THE UNITED KINGDOM.

1. The object of penal establishments will be the rehabilitation of the soldier under sentence as a soldier, and to fit him in every way for return to his unit. In cases where this rehabilitation as a soldier is impossible (due to the incapability of the man himself), the object will be to prepare him for return to civil life. This latter course will not be adopted except in the most stubborn cases.

2. Detention Barracks will be replaced by Disciplinary Training Centres, of which there will be two types, Type "A" and Type "B."

All soldiers sentenced to detention will, in the first instance, be admitted to the Type "A" Disciplinary Training Centre. Here emphasis will be laid on confinement, strict discipline and individual military training. After a period, which ordinarily will not exceed one month, in the Type "A" Disciplinary Training Centre, soldiers under sentence will progress to the Type "B" Disciplinary Training Centre.

3. At the Type "B" Disciplinary Training Centre emphasis will be on progressive rehabilitation, and preparation for return to units. The soldier under sentence will pass through three stages, of which the final stage will approximate closely to life in a normal unit. The course here will last three months, on conclusion of which, subject to good behaviour and a satisfactory result of the course of training, his sentence will be suspended and the man will return to his unit.

A man who fails to make satisfactory progress in his course may be returned to the Type "A" Disciplinary Training Centre for a further period.

4. Soldiers who are serving sentences of less than 4 months but more than 42 days may go direct to the Type "B" centre or else serve less than a month in the Type "A" Centre before going to the Type "B" Centre.

5. Soldiers who are serving sentences of 42 days or less will serve their full sentence in a Type "A" establishment. The reason for this is that if a soldier earns his full remission of one-third of the sentence, he will have to serve only 28 days of a 42 days sentence. It is not considered that this period can be split usefully between the Type "A" and "B" establishments.

6. The third type of establishment will be the Military Prison and Detention Barrack Type "C." This will be for soldiers sentenced to detention and imprisonment for military offences, who are not capable of rehabilitation as soldiers and who are to be discharged on completion of sentence. Here emphasis will be on security and on vocational, industrial and educational training. Military training will be restricted to such periods of drill and physical training as are necessary to maintain health.

7. Soldiers sentenced to imprisonment for civil offences, and all soldiers sentenced to Penal Servitude, will continue to serve their sentences in civil prisons as at present.

8. It is the intention to allow smoking by soldiers under sentence in all establishments. The number of cigarettes permitted, together with the administrative details in the various types of establishments, is being considered.

9. Soldiers under sentence will spend less time locked up in their rooms than has been the practice in the past. This is being made possible by the introduction of a shift system of staff working.

10. The provision of suitable accommodation or the conversion of existing buildings to modern standards of military accommodation and sanitation will be put in hand as resources permit.

11. Recruitment will be from Regimental Officers and, in order to maintain the high standard of military training necessary at Disciplinary Training Centres the officers selected will not normally remain in this branch of the Service for more than two years without returning to regimental duty. It is intended to supplement this type of officer with a nucleus of officers older and more experienced in security and administration.

12. The Military Provost Staff Corps will be recruited from Regimental N.C.Os. There will also be a large proportion of younger and more active N.C.Os. who are qualified in structors in the various branches of military training, who will be employed primarily as instructors.

13. Educational facilities will be provided at all establishments under the direction of Army Educational Corps personnel.

14. This will be provided in the Military Prison and Detention Barrack Type "C," and will include instruction in such subjects as bootmaking and repairing, carpentry, rug and toymaking, bookbinding, upholstery, tailoring and the internal combustion engine.

In the Disciplinary Training Centres there will be specialized military training in addition to educational and the normal training of the arm to which the soldier belongs. Such training would include signalling and wireless, internal combustion engine and special weapons.

15. Arrangements overseas will conform as far as possible to the above procedure. In garrisons such as Gibraltar and Malta, where there are only a small number of troops, it may be necessary to combine the two types of Disciplinary Training Centres in one establishment.

Release Deferment

asked the Secretary of State for War how many officers have been deferred for a second period of three months; and what is the largest unit of block deferment so far authorised by his Department.

Deferment is not by periods of three months but only for so long as the officers concerned are required in view of military necessity. Subject to this, it is the intention that no one will be deferred for more than three months. According to the latest return six officers have been deferred for more than three months. I am taking immediate steps to find out why they have been deferred for so long, and to ensure that they are released at the earliest possible moment.

Do I understand the Minister to tell us that of the total forces only six officers have been deferred for a period longer than three months?

Would it not be a good thing, when they defer an officer, if they would make up their minds for what purpose they want to defer him and for how long, based on some plan or other?

I can tell the hon. and gallant Gentleman that I have recently been in touch with the commands about this matter.

Is the Minister aware that this is a very serious matter for the men deferred, because it interferes with their careers? I am very surprised to hear that only six officers are concerned, because I think that 50 per cent. of them must belong to my constituency.

Can the Minister say whether these six officers are in the Middle East?

asked the Secretary of State for War on what grounds an order has been published by 8th Air Formation Signals, C.M.F., that it may be necessary to defer, as operationally vital, some personnel due for release during July.

If there is a possibility of the deferment of individuals it is desirable to give as long notice as possible, and the warning order referred to was no doubt issued with that object in view. The Royal Corps of Signals is a specialist arm and it is not always possible to find immediate replacements for men due for release, although every effort is made to do so. It is the responsibility of the Commander-in-Chief, C.M.F., in this case, to decide whether the retention of an individual is essential.

Is the Financial Secretary to the War Office aware, when he says that as long notice as possible is given, that the men concerned in this case were given 15 hours in which they might lodge an appeal against their deferment? Does he consider, that that is as long notice as possible?

I quite agree with the hon. and gallant Member and I hope that there is some misunderstanding here. Any individual who is compulsorily deferred should be given ample opportunity of pleading his case for release.

Is the Financial Secretary aware that half his troubles are due to lack of foresight?

No, Sir, I entirely disagree with the hon. and gallant Member. My troubles are due to far more varied factors than that.

Is the hon. Gentleman aware that the serving men's letters contain suggestions of lack of foresight in the War Office?

Requisitioned Premises

asked the Secretary of State for War the number of premises held on requisition by his Department in the boroughs of Kingston-on-Thames, Surbiton and Maiden; and the number of these which it is anticipated will be released during the next three months.

13 premises are now held; it is hoped that four will be relinquished by the War Department during the next three months.

Will the Minister give an assurance that these boroughs will not, as a result of my hon. Friend's Question, enjoy undue priority over the neighbouring borough of Twickenham?

Deserters

21 and 22.

asked the Secretary of State for War (1) how many soldiers have been reported since 1st January, 1946, to have been absent without leave for periods exceeding seven days but less than 21 days; how many such soldiers had their family allowance, a dependant's allowance, and an allotment from their pay, not connected with an Army allowance, respectively, stopped, and with effect from what date after going absent was such stoppage made; and in how many cases has any such allowance or allotment been subsequently put in issue in respect of a period of absence owing to the acquittal of the soldier of illegal absence;

(2) how many soldiers have been found deserters by courts of inquiry, held under Section 72 of the Army Act, since 1st January, 1946; how many of these had their family allowance, a dependant's allowance or an allotment from their pay not connected with an Army allowance, respectively, stopped and with effect from which date after going absent was such stoppage made; how many are still in a state of absence; how many have since returned; how many of those who returned were subsequently convicted of illegal absence and how many were acquitted of any such offence, respectively.

The number of men struck off strength in the Army as deserters, by officers in charge of Records, between 1st January and 31st May, 1946, was 3,904. I regret that I am unable to furnish the other statistics sought by the hon. Member. They are not readily available and to obtain them would involve a serious addition to the heavy burden of work falling on Record and Pay Offices during the operation of the release scheme.

Ammunition Dumps

23 and 24.

asked the Secretary of State for War (1) when the land occupied by roadside ammunition dumps which have already been emptied will be derequisitioned;

(2) when derequisitioning of land occupied by roadside ammunition dumps in Shropshire will commence; and by what date it will be completed.

Considerable strips of land have already been derequisitioned, as dumps are wholly or partially cleared. There are cases where the shelters used are emptied and filled again. This mostly occurs where redistribution of stocks is undertaken in order to facilitate control of labour and transport and in the interests of safety. Progressive derequisitioning of land will continue at all ammunition depots, until the last is cleared. But I cannot forecast when this will be. In the particular case of Shropshire it is anticipated that the sub-depot at Pontes-bury will be cleared within the next three or four months and that progressive release of land in the Craven Arms-Lydbury-Ludlow area will be possible from September, 1946, onwards.

Africa (Families of Personnel)

asked the Secretary of State for War whether he is aware that empty R.A.F. transport aeroplanes regularly fly from Egypt to Nairobi to collect personnel for release; and whether he will arrange with the R.A.F. authorities to use this unused accommodation to bring out the families of officers and other ranks serving in East and Central Africa.

I understand that R.A.F. transport aircraft are not in fact sent from Egypt to Nairobi as suggested in the hon. Member's Question. The R.A.F. scheduled services operating over routes which include the section between Egypt and Nairobi are normally filled to capacity with priority passengers in both directions on some part of the route, if not all. They would not, therefore, offer a solution to this problem which, however, we now hope to deal with by sea transport. The delay in obtaining sea passages for these families has now been eliminated and by the end of this month all those now awaiting passage will have been despatched.

Is the Minister aware that, according to my information, planes are flying to Nairobi, and that there is no doubt about their going to Eritrea and moving families there in this way?

The point of the Question was that they were going to Nairobi to collect personnel for release. All the information which I have is that which I have given to the hon. Gentleman. If he has anything to add to it, or any particular point to raise on it, I shall be pleased to have a word with him.

asked the Secretary of State for War why officers and other ranks serving in East and Central Africa cannot get applications for their families to join them approved until they have satisfied the authorities that they have already taken suitable accommodation for them; and whether he will state the average delay between the approval of applications and the arrival of the families concerned.

The instructions prescribe, as one of the conditions of eligibility, and that local military authority must be satisfied that suitable accommodation is available for the family. It may be that in certain commands, where the difficulties of finding accommodation are known to be very great, the local commander has interpreted this instruction in the sense that the accommodation must have been obtained. I will cause inquiries to be made in the case of the command referred to, and will write to the hon. Member when I have ascertained the full facts. For various reasons the average delay between the approval of applications by the War Office and the arrival of the families has been four to five months, but this period is being reduced. During this month all families whose applications have been approved by the War Office and who are awaiting passage will have been despatched.

Is the right hon. Gentleman aware that officers and other ranks have been compelled to take accommodation at great expense, paying up to £50 a month for a house, and then had the accommodation on their hands for a long period while waiting for their families?

I am very sorry to hear there are cases of that description, and it certainly does involve hardship, but it is a misinterpretation of the instructions. The accommodation must be available, not taken.

Surplus Huts

asked the Secretary of State for War whether he is aware of the large number of Army huts still standing derelict about the countryside; and what steps he is taking to use, or dispose of them, before they have deteriorated further.

I would refer the hon. Member to the reply given to the hon. Member for Fareham (Sir D. White) on 19th February last.

Is the Minister aware that many of these huts are definite eyesores on the landscape and spoiling a considerable number of beauty spots in the countryside?

I pointed out that any hutted camps which were used as searchlight sites, or for any other purpose, which are surplus to Government requirements, are first handed over to the owner of the land, and then, if not accepted, to the Ministry of Works.

Is the Minister aware that these huts are deteriorating and holding up food production and even, sometimes, building?

asked the Secretary of State for War the number of hutments built during the war for occupation by Army personnel; the number which are no longer in use; and whether it is proposed to make unwanted buildings available, where suitable, for industrial purposes and for housing.

asked the Secretary of State for War how many hutments were built in this country for his Department; how many are now occupied; and what steps he is taking to dispose of the surplus.

It would not be possible, without detailed and lengthy research, to state how many huts were built for the War Department during the war and how many of those which remain are out of use at any given moment. The task would necessitate the diversion of staff from other work for a considerable period and I do not feel that the results would justify it. A procedure is already in operation under which huts declared as surplus to military requirements are reported for disposal to the Board of Trade, if suitable for industrial use on the site, and to the Ministry of Works, for housing or other purposes.

Is my right hon. Friend aware that in many parts of the country Army camps and hutments have become empty, but as soon as application is made by Government Departments like the Ministry of Health or the Ministry of Labour, the War Office suddenly find a use for the hutments? Will the right hon. Gentleman make sure that as many premises as possible are derequisitioned as quickly as possible?

I can assure my hon. Friend that this matter is engaging my attention, because I realise the need for accommodation not only for housing purposes but for various other purposes, and as far as I know the answer I have given is in accordance with the facts. If anyone has any particular case to which he wishes to draw my attention I will do what I can to deal with the matter.

When these hutments are vacated, does not the outgoing unit make a return to the appropriate office? Cannot the information be obtained that way?

The hon. Member referred to the need to get the figures. As a matter of fact, there have been quite a large number of temporary buildings. There was a vast number of buildings put up for V-day, including a number of temporary buildings. They were recorded locally and we have not the full figures about them.

Release Clothing

asked the Secretary of State for War if he is aware of the delays that are taking place in the issue of civilian suits to demobilised soldiers; and whether he will take steps to improve the position.

Delay occurred during the rush period of release but the situation has considerably improved. Except in the case of double-breasted suits, about which there are still some production difficulties, very few delays now occur.

Is my right hon. Friend aware that these delays run into months in some cases, and cause tremendous hardship for men waiting to take up appointments?

I am very sorry to hear that, and if any Member has a case to which he would like to draw my attention I shall be glad to look at it. I must say, however, that one of the encouraging things in my work is the large number of letters I get from soldiers who express their great appreciation for the way in which they are dealt with and the suits that they get.

Has the Minister received a letter from a constituent of mine who was discharged in January, and is still waiting for his suit?

Germany (Families of Personnel)

asked the Secretary of State for War whether it is intended to reduce the minimum period of 12 months for which officers and men have to remain in Germany in order to qualify to be joined by their families.

Are not these officers and men who have less than 12 months to go probably the very ones who have been longest separated from their families, and if further accommodation can be obtained will the Secretary of State consider including them in the scheme?

As the House will agree, taking families over to Germany is a considerable operation, and I think I would rather wait to see how it works before I add to it.

Is my right hon. Friend aware that when the scheme was first mooted there were men with more than 12 months to go who were very anxious to have their families with them, and there was rather a delay in settling details of the scheme? Is it not a little unfair that these men should be penalised by the delay?

They would be a very small number and it is another matter. I will have a look at it, but I could not give any definite guarantee to deal with anyone outside the 12 months.

asked the Secretary of State for War if he will ensure that clothing coupons for children proceeding with their parents to Germany are issued well in advance of the date of departure; and what steps are being taken to enable parents to purchase children's clothes in Germany.

Clothing coupons will be issued when the application to proceed overseas is approved; the embarkation instructions will be issued later, when the family have reported that they are ready to depart. It is planned to make limited supplies of clothing for infants and children available from time to time in N.A.A.F.I. families shops in Germany.

Will the hon. Gentleman make quite certain that the wives of these men have this information as far as is possible?

S.E.A.C. (Formation College Facilities)

asked the Secretary of State for War why no formation college has been established for troops serving in S.E.A.C; and whether he will now improve the training facilities in S.E.A.C. and provide one.

This has been considered, but, owing to the limited resources of the command and the comparatively small number of troops, the establishment of a college was not considered practicable. It is hoped that a formation college will shortly be opened in India, which will provide vacancies for troops in A.L.F.S.E.A. Also, an allotment of 185 vacancies a month has been made to A.L.F.S.E.A. at the formation colleges in the United Kingdom, to cater for officers and other ranks who require courses when they return home for release.

Can my right hon. Friend give an assurance that men from S.E.A C. will not have to attend formation colleges on their release leave but given the opportunity to attend such colleges before their release leave?

We have taken steps in India about that matter, and I will do my best to see that nobody suffers in that respect, because I know from what I have seen how important it is that these men should have a chance of getting to formation colleges in order to assist them in resettlement.

Will the right hon. Gentleman make certain that this is not used as an excuse by S.E.A.C. to detain the inordinately large number of buildings from which they are at present depriving the civilian population?

It cannot be because of this, because S.E.A.C. have no formation colleges at all.

Is the Minister aware that the information I had a fortnight ago was to the effect that the only vacancies available to men from S.E.A.C. in formation colleges in this country was when they were on their release leave, and will he make a change in that respect?

I am very much obliged for the information, and I will make an investigation.

Camp, Leicester

asked the Secretary of State for War, what are the intentions of his department with regard to the camp at Stoughton Drive, Leicester; and, if he is unable to close this camp within a reasonable time, if he will consider removing the main entrance from its present position and benefit the local residents.

The Camp at Stoughton Drive, Leicester, is occupied in connection with a long-term requirement. I regret that I am unable to consider removing the main entrance from its present position, as I am informed no alternative is possible. If, however, my hon. Friend has a proposal to make I will have it examined.

Personal Cases

asked the Secretary of State for War why 6391871 Sapper H. Blaker, R.E., was posted as a deserter since 10th November, 1944, when he disappeared whilst on active service; whether he is satisfied that his previous Army career justified such a decision; and whether, in view of the mine-infested area where he disappeared, he will now consider Sapper Blaker to have met his death by misadventure so that his family may have the family allowances restored them and cease to have to depend on public assistance.

I am taking further advice on this case, and will write to the hon. Member as soon as possible.

Does the right hon. Gentleman realise that for many months correspondence has been going on on this subject?

Yes, but the question of taking legal advice is involved in view of the special circumstances.

Will my right hon. Friend consider issuing fresh instructions to apply to similar cases by which the benefit of the doubt will in future be given to the soldier and his family and not to the State?

The Question I was asked refers to a particular case in a mine-infested area.

asked the Secretary of State for War why no reply has been sent to the hon. Member for Darwen, to his letters of 21st November, 1945, 7th and 26th February and 12th April, 1946, on behalf of Mrs. Bennett, of 31, Baron Street, Darwen, concerning her son Private Bennett.

Is the hon. Gentleman aware that I only received that letter after I had put down this Question? Is it right that it should take eight months and five letters from a Member of Parliament before he can have a complaint from his constituents investigated, and does it not show inefficiency at the War Office?

In general I would say that eight months is too long. [ Laughter. ] I do not know whether the hon. Gentleman expected any other answer, but I may say that the complaint in this matter had to be very carefully investigated overseas and it related to conditions in a camp. At any rate, I hope the answer I have given is satisfactory.

Danger Areas (Clearance)

asked the Secretary of State for War the number of civilians killed and injured from explosives found on moors; and if he will give an assurance that the military authorities are treating the clearance of danger areas as a matter of urgency.

The records of accidents do not show separately the figures relating to death or injury caused by explosives found on moors, and as it would require considerable research to ascertain these figures I hope my hon. Friend will not press for the information. The clearance of danger areas is being treated as most urgent, but it will be realised that the task is a formidable one

Is my right hon. Friend in a position to say what has been done to compensate persons so injured, and the dependants of persons so killed?

Surplus Excavators

asked the Secretary of State for War how many excavators in this country belong to his Department; how many have been declared surplus; and how many have been taken up by purchasers.

Two hundred and sixty-four, of which 88 are likely to be declared as surplus; 265 have already been declared as surplus, up to 28th June. The allocation of surplus excavators is decided by an inter-departmental committee, but I understand that 115 have been sold and that sales of a further 112 are under negotiation. Of the balance, 31 are beyond repair and seven have been transferred to other Departments.

Austria (Families of Personnel)

asked the Secretary of State for War, if he will make arrangements for children of officers and other ranks in Austria, whose wives have joined them under operation Henpeck, to go out to their parents during the summer holidays.

Could the hon. Gentleman say who is responsible for the very happy titling?

Python Leave

asked the Secretary of State for War if, in cases where a man is due for Python leave which would overlap his release date, the release date will be advanced to the date upon which Python would begin.

No, Sir. To do so would be to the disadvantage of the man concerned since he would thereby be deprived of a period of paid leave.

Is the hon. Gentleman aware that so far as Greece is concerned, at any rate, a number of men due for leave simply had their leave cancelled because they were shortly due for demobilisation, and why cannot demobilisation be advanced to the extent of the leave?

For the reason I gave in my original answer. If we did that it would penalise the man to a certain extent; he would lose some of his paid leave.

Requisitioned School, Gold Coast

asked the Secretary of State for War why the Prince of Wales college at Achimota, Gold Coast, has not been derequisitioned.

This property cannot be released until other accommodation has been provided for the present occupants. Alternative premises have been found and the necessary alterations are now being carried out as a matter of urgency. I fully appreciate the need for the early return of the School to its proper use and I hope that it will be possible to release it during September, 1946.

Regular Officers (Retirement)

asked the Secretary of State for War whether, in view of the fact that the new rates of pay which come into operation in July constitute a new contract, he will ask all Regular officers whether they will continue to serve or prefer to retire.

The engagement between the military officer and the Crown is not invalidated by the recent change in the rates of pay. The circumstances in which Regular officers may be permitted to retire were explained to the hon. and gallant Member in reply to a Question on 18th June.

Is the hon. Gentleman aware that serving officers are becoming very tired of the policy of his Department of keeping those in who want to get out and putting those out who want to stay in?

I am afraid that that does not apply only to officers. I expect there are many other ranks who want to get out more quickly than they are doing. We have to do the best we can and I think we are doing so in the circumstances.

Millfield Aerodrome

asked the Secretary of State for War why, in view of the fact that all Government requisitioned property is offered to other Departments before being offered to local authorities, he has now asked for part of Millfield aerodrome to be handed over to his Department.

The domestic accommodation at this aerodrome is required to meet an urgent military commitment; it was allocated to my Department for that purpose.

May I ask whether it is a secret or whether the hon. Gentleman really does not know?

I know, Sir, but I think that all I can say at the moment is that it is an urgent military commitment.

Prisoners of War

Lorry Drivers

asked the Secretary of State for War whether his attention has been drawn to the accidents that have occurred to military lorries driven by prisoners of war; and if he will give an assurance that prisoners of war are thoroughly tested, not only in driving but in the British Highway Code, before being allowed to drive.

Very few accidents have occurred to military lorries driven by prisoners of war. All potential prisoners of war drivers are carefully selected and are subject to the same driving test as given to British soldier drivers, which is done by a qualified motor transport officer. The Highway Code is also explained to them.

Untraced British Personnel

asked the Secretary of State for War how many British prisoners of war, known to have been formerly in German or Italian prisoner-of-war camps, are still untraced; and what action he is taking to trace them.

The total, for all three Services, is 65. Special organisations in Germany and Italy are still conducting exhaustive searches for any trace of these men, and repatriated prisoners who might have any knowledge of them are also approached for information.

Does that answer mean that the searches are confined to Germany and to Italy?

No. I understand general search parties are out. Of course, we have the Red Cross helping us in this matter. There was an unofficial report from German sources which appeared in the Press some days ago that British prisoners of war are believed to be imprisoned at Breslau. That statement is under investigation.

Camps, Belgium (Report on Investigations)

asked the Secretary of State for War whether he has investigated the living conditions for German prisoners in camps No. 2218 near Brussels and No. 2228 near Waterloo; and whether court-martial proceedings have been taken against the officers commanding these camps.

As the allegations regarding conditions in these camps received considerable publicity, and naturally gave rise to very serious concern on the part of hon. Members and the general public, my right hon. Friend wishes to give the fullest information about the result of his investigations. This has necessarily involved rather a lengthy statement which my right hon. Friend will, with permission, circulate in the OFFICIAL REPORT. In general terms, I am happy to be able to say that the conditions in the camps were not as represented in the Press.

Would the Financial Secretary say that if he does discover that conditions in those camps were bestial in any way he will then publicise in the German Press a statement to the effect that the British Government condemns this kind of behaviour?

I would ask the hon. Gentleman to read the report, which is a very full and frank one, when I hope his opinion may be altered.

Is the report published?

Following is the Statement:

Hon. Members will recollect that an article appeared in "The Observer" of 19th May which made very serious allegations concerning the conduct of these camps, in particular Nos. 2218 and 2228. This was followed by articles in other newspapers and there have been Questions in this House and in another place regarding these camps and the condition of prisoners of war from Belgium who have been brought to this country.

On the day the first article appeared in "The Observer," I caused instructions to be issued for a full and urgent investigation into the conditions in these camps, with particular reference to the allegations of brutality, theft of prisoners of war property and misappropriation of rations, which filled me, as I am sure they did all hon. Members, with indignation and horror.

A court of inquiry was held in Belgium and made a very thorough investigation. I propose giving hon. Members a frank statement of my conclusions after considering the findings of this court and the comments of my advisers thereon. Before doing so, however, I would like to make one or two points regarding the constitution of the court and the manner in which it was conducted. The court was composed of officers who had no connection with prisoner of war camps during the period in question, the winter of 1945–1946. On the other hand, all available officers who commanded prisoner of war camps or who were intimately concerned with their adminstration during the winter were called as witnesses. Evidence was given by two representatives of the International Y.M.C.A., one of Dutch and one of Swedish nationality, and also by a delegate of the International Red Cross who had been visiting camps in Belgium for a year. In addition, an invitation was broadcast in camps Nos. 2218 and 2228 to prisoners of war to appear before the Court to make complaints regarding any irregularities seen or suffered. Only four answered this invitation and I am glad to say that the complaints made amounted to very little; in fact the most serious was of a prisoner being pushed, with an open hand, by a British guard.

A number of prisoners volunteered to give evidence in favour of the British administration. Three were heard, including a German doctor of 55 years of age who had deferred repatriation as he wished to continue his work in the Camp.

The capacity of the nine camps in Belgium was 150,000. Holdings were always changing and there are now only about 18,000 in Belgium. No. 2218 could accommodate 10,000 and No. 2228, 60,000. The latter was reduced to 40,000 and subsequently to 20,000 capacity. Three camps during last winter were hutted, the remainder tented with hutting for the camp hospital and other amenity purposes. Tents were dug in and lined. There was a shortage of clothing and blankets until late in the winter, especially in No. 2228; nevertheless, there were never less than two blankets per man and during the coldest part of the year each prisoner of war had four. All tents had stoves but fuel was limited until December, after which there was sufficient for every stove to be used from midday until evening. Water was ample in all camps except No. 2228 where, although there was sufficient for cooking and no man went thirsty, washing facilities were not up to scale. The water supply in this camp was satisfactory by the end of 1945.

With regard to the allegations of brutality, one or two isolated cases occurred and were dealt with by disciplinary action. British, German and neutral observers, who had full access to the camps and were able to hear the complaints of any prisoners of war, agree that, to all intents and purposes, brutality or harsh treatment was unknown and that it could not have occurred without its coming to light.

Orders regarding the removal of personal articles from prisoners of war are quite clear. Isolated cases did occur when these camps were first opened and there is a record of an officer being court martialled for stealing from prisoners of war. Prisoners of war arriving from America were found to be in possession of large quantities of articles such as cigarettes and soap. These in certain cases, with the agreement of the prisoners of war in transit, were distributed amongst their less fortunate comrades. It may be that this arrangement has given rise to the story of goods being taken from prisoners of war and in particular from those in transit.

The International Red Cross delegate always had all access and assistance from every Commandant and if any brutality or thieving had been brought to his notice he would have immediately informed Geneva.

That brings me to the question of rations. The scale for non-working prisoners of war was 2,000 calories, and for those working or those certified by the medical authorities as requiring additional food 2,400 calories. From January to March, all prisoners of war got 2,400. The 2,000 scale, which is the same for non-working prisoners of war in this country, is calculated to be sufficient to maintain but cannot be expected to build up a prisoner of war in a low physical state or fit him for immediate hard work. There is no evidence of a single case of stealing, rations by the British staff. Difficulties were experienced in ensuring a fair distribution by the Germans within the Compounds and undoubtedly, for a time, the privileged few did better than the remainder. Steps were taken to improve supervision and there seems no doubt that for some time past every man has got his fair share. Bartering of rations for cigarettes was prevalent and difficult to stop.

The total number of deaths from all causes from June, 1945, to May, 1946, amounted to 565, a figure of about 4.7 per thousand. This total is certainly not an alarming one but there was a rise in the death rate particularly among the older men during the three months of November, December and January. It must be recognised that the shortage of clothing and blankets in the early part of the winter may have been, to some extent, a contributory cause. I am satisfied, however, that the authorities took all possible steps to improve these conditions, but, unfortunately, matters could not be put right in time to prevent a serious outbreak of dysentery which, coinciding with the cold weather, was too much for some of the prisoners of war who belonged to the higher age groups and had never fully recovered from the privations they suffered during the closing stages of the war. It is clear that Commanders, Camp Commandants and their staffs carried out their duties conscientiously. To suggest that there was a callous outlook or indifference to the welfare of the prisoners of war is very unfair to the British officers and men concerned, who, as usual, did all they could to improve the lot of those under their care.

asked the Secretary of State for War whether those responsible for sending re-educated German prisoners from white camps in this country to camps 2218 and 2228 have been court-martialled; and whether he has ensured that white prisoners are not treated in the same way in future.

Camp 2218 was at one time used as a transit camp for small parties of anti-Nazi German prisoners of war; Camp 2228 was not used for this purpose. The larger parties now being despatched render the use of a transit camp unnecessary; the question of disciplinary action has not arisen.

Questions

Mufti of Jerusalem

asked the Prime Minister whether he has any further statement to make concerning the ex-Mufti of Jerusalem.

His Majesty's Government are negotiating with the Egyptian Government on this matter but no agreement has yet been reached, and I do not consider it advisable to give any further details at this moment.

Will the right hon. Gentleman let the House know as soon as he is in a position to give any further information?

Yes, as soon as I know I will let the right hon. Gentleman know, and I will ask him to put down a further Question.

Geological Museum, South Kensington

asked the Lord President of the Council what is the reason for the delay in opening the Geological Museum at South Kensington to the public.

It has been necessary to carry out a considerable programme of work in reconverting the building from its wartime use. Shortage of labour and material has necessarily delayed this work, but it is hoped to reopen the museum towards the end of August.

Internment Camps, Germany (Deaths)

asked the Chancellor of the Duchy of Lancaster the percentage of deaths that have taken place in the civil internment camps in the British zone; and how this contrasts with the average death rate in the zone.

Over the first four months of this year the monthly death rate averaged .112 per cent. in the civil internment camps, and .128 per cent. for the normal civilian population, the figures are not strictly comparable because the internees are mostly within the ages of 18 to 65 and a number seriously ill are released on medical grounds.

Can the hon. Gentleman say how he reconciles those figures with the report on the camp at Recklinghausen, which was published last week?

I do not know the particular report of Recklinghausen the hon. Member is referring to, as a number of statements concerning conditions there have been published. But the figures I have given show that the comparison between the rates in internment camps and among the civil population is not normal. The conditions are entirely different, because the ages range from 18 to 65 in internment camps. It is our practice to release those over 65, and anyone suffering from a chronic illness, who might subsequently die from it.

Is it not a fact that health conditions at Recklinghausen have shown a steady improvement since the camp was handed over by the military authorities to the civil government?

That is true; the latest figures show that the death rate has fallen to 0.6 per cent.

Germany (Food Situation)

asked the Chancellor of the Duchy of Lancaster if, in view of the public concern at the disparity in the statements made by high ranking officers on the critical food situation in the British zone in Germany and other allegations that there is an extensive black market and that the German people are well fed, he will make a statement indicating the approximate stocks of bread grains in the British zone, the calorific value of the ordinary civilian ration and the steps which have been taken to encourage food production and to ensure that the farmers are not withholding food for their own consumption.

As the answer is necessarily rather long, I will, with your permission, Mr. Speaker, make a statement at the end of Questions.

Later

As I have on several occasions made clear in the House, it has for some time been impossible to maintain stocks of bread grains in the British zone which could be considered in any way adequate to ensure even regular distribution and avoidance of local breakdowns in supply. The latest estimate is that the actual stock position will vary between 10,000 and 30,000 tons during the current rationing period up to 22nd July. This means that no more than four or five days' supplies are actually in hand on any given date and our officials are extremely hard pressed to maintain consistent distribution.

Distribution of ration foodstuffs to the normal consumer is on the basis of 1,050 calories which is less than half the amount adjudged to be necessary for maintaining normal resistance to disease. We have naturally, done everything within our power to encourage food production I dealt fully with this part of the Question in my speech in this House on 10th May.

As regards the last part of the Question, we have had continuously in mind the importance of ensuring that farmers deliver their production in accordance with our regulations. Inspection committees have made three inspections of farms. The first, before the main harvests were brought in last year was to assess the amount likely to be obtained. Each farmer was given a quota which he had to deliver. The second inspection was made after deliveries commenced, to check up whether any deliveries had been below estimates. The third inspection was made recently for the purpose of "Scraping the Bin." Each inspecting committee was accompanied by a German trade union representative, and at the threshing period an inspector stood by each threshing machine to check the grain passing through. The final inspection brought only 15,000 tons in all, and it must be assumed that we have now virtually exhausted this source of supply. All the evidence indicates a high degree of cooperation on the part of the farmers, and a satisfactory absence of sabotage or falsification of stocks.

A tripartite nutritional survey has been made in the three Western zones. Its results show that the effects of the cuts in rations last March are now becoming apparent, and that the population is in fact seriously underfed. While it is inevitable that in such conditions there should be instances of illegal transactions in food, there is no black market in the sense that substantial illicit meals are available in hotels and restaurants. Any illegal transactions in food that can take place are not on a scale to affect the general level of consumption.

Is my hon. Friend aware that the statement he has made will go a long way to counteract malicious reports? Is he further aware that there are some 670,000 farms in the British zone in Germany, about 75 per cent. of which are under 25 acres in extent? Will he consider some kind of communal effort which will increase production on those farms and make the collection of any surplus easier, so as to increase supplies of food to the German people and thus make the position of the British people easier?

The answer to the second part of the question is that we have already taken all possible steps to ensure that any surpluses have been delivered up. We are satisfied from the steps that have been taken that there are, in fact, no more surpluses available on the farms. We have had not only the cooperation of the German trade unions and of German agriculturists in connection with the inspection teams that have gone out, but we have had our own tripartite nutrition committee which has examined the zone very thoroughly. We have also now secured the assistance of three or four German democratic parties in the zone and of the Churches as well, in a common appeal to people in all districts for a voluntary surrender of any small amounts they may have in the cupboards, to assist the very difficult situation arising in the big towns.

In view of the very critical cereal stock position which the Minister has just disclosed, may I ask what has happened to the arrangements that were made by the Lord President of the Council on the occasion of his recent visit to America, by which we understood the Americans were to ensure that adequate supplies of bread grains were available in the United States and British zones?

Yes, Sir, certainly. The arrangement that was retched with the Americans by the Lord President of the Council provided for sufficient bread grains to come forward until the end of September to maintain the present calory ration of 1,050, which is, of course, not adequate, but which was the position provided for. The very serious stock position to which I referred is an interim position, pending the arrival of the bulk of those stocks. Already more than 100,000 tons have arrived, but as we had already run down almost completely the pipe line which existed when that agreement was reached, there is no pipe line available from these arrivals, which are being used to meet current consumption and distribution. We have, in fact, only been able to keep the position fluid pending further arrivals, by the fact that we are in a position now to take certain measures which could not be taken in normal conditions, namely, the requisitioning of transport and the collection of small stocks from one part or another, as a kind of war operation. It has been an emergency operation and we have been able to save the situation until now, but it is evident that until the bulk of the American shipments arrive we shall be in a very difficult position.

In view of the distorted picture which many newspapers have given, will my hon. Friend take steps to make sure that the facts are put across in a graphic form on the B.B.C.?

I am, of course, considering several methods by which the public can be fully informed of the situation, but it is inevitable that casual observers with limited experience of the general situation, and with no knowledge of what is working underneath the surface, will make these statements. They are irresponsible statements in most cases.

Since the normal sources of supply in respect of food grains are Eastern Europe and the Russian occupied zone, what fresh steps have been taken by his Majesty's Government to secure the implementation of the spirit of the Potsdam Agreement for the supply of those zones from their normal sources?

The answer should be obvious to the House. It is that the implementation of the Potsdam Agreement and its full implications are just now under discussion in Paris.

Will my hon. Friend take all the appropriate steps to see that those officers who are proved to have made misstatements about the food position in Germany are reprimanded?

If my hon. Friend is referring to the Question that was put down last week in regard to a certain officer of the B.A.O.R., that question was answered last week and is outside my Department. It does not concern a Control Commission officer.

While I fully agree with the Minister as to the desirability of the position being correctly stated in respect of Germany and other countries in relation to food, may I ask him to bear in mind the importance of giving full information of figures about stocks?

I am responsible only for the German position. I cannot answer for other countries.

Will the hon. Gentleman please explain why the 100,000 tons that he says have arrived have not been taken into stock?

I thought I had explained that the arrivals are not taken into stock because there is an urgent current demand to maintain distribution. The supplies are rushed directly to the mills and from the mills to the shops, which takes ten days from the date of arrival, and until there are more substantial arrivals, there will be no opportunity of putting them into stock.

May I ask whether any stocks of cereals from this country had to be sent to Germany in order to save the situation until the Americans started to arrive, and if so, what the tonnage was?

Statements have already been made in connection with potatoes and other items sent at the emergency period. I believe that further statements will be made if necessary in the Debate tomorrow.

Can the hon. Gentleman say how soon it is expected that the German harvest will relieve the situation?

The German harvest does not come in in substantial quantities until September. In the meantime, the commencement of the harvest in August will contribute somewhat to the situation.

Would the Minister say he is satisfied that the introduction of bread rationing into this country will improve the position and increase the supply of bread grain in the British zone in Germany?

Can the hon. Gentleman say whether the position in Austria is as bad as in Germany? Are the people getting a similar ration in Austria? Would he be prepared to institute a similar scrutiny over the farmers in Austria?

The food situation in Austria has since, I think, 1st June been taken over by U.N.R.R.A., and it is not now my responsibility. In reply to the first part of the question, the food situation in Austria is very difficult still, but adequate rations are being assured for the current rationing period so far as my information goes, though that is a matter for U.N.R.R.A. I think the signs are hopeful that we shall at least be able to maintain the standard rations during the current rationing period and beyond.

National Finance

Musicians (Performances Abroad)

asked the Chancellor of the Exchequer how many British musicians and conductors have received fees for performing abroad in the last 12 months, and what is the amount of the fees they have received in the various countries.

I regret that these particulars are not available.

No, because the people who surrender dollars and other currencies are not required to fill in forms saying how they got them, and if they were so required these would not be earnings in the sterling area. Further, they are not examined, when going abroad, as to whether or not they intend to perform in other countries. For these reasons the data are not available.

Ex-Rajah of Sarawak (Income Tax)

asked the Chancellor of the Exchequer whether the ex-Rajah of Sarawak will be liable for Income Tax on the £100,000 which now comes to him as last Rajah of Sarawak, under the settlement of the previous Rajah in 1912; and whether he will have the absolute disposal of this capital sum, or if it will be refunded to the State of Sarawak on his decease as was to have been the case in the previous agreement with His Majesty's Government about the £1,000,000 to be allocated to him.

It would be improper to give public information regarding the Income Tax liability of particular individuals. The second part of the Question is a matter for my right hon. Friend the Secretary of State for the Colonies.

In view of the fact that the Secretary of State for the Colonies asked me to ask the Chancellor of the Exchequer this Question, may I ask the right hon. Gentleman if the Rajah of Sarawak, on becoming a British subject and residing in this country, will be liable to Income Tax on everything he declares in this country?

Without making any improper disclosure, I can say that if he becomes a British subject here his liability will be the same, in law, as for other British subjects.

2½ per cent. Savings Bonds (Closing Date)

asked the Chancellor of the Exchequer how long he proposes to continue the present issue of ½ per cent. Savings Bonds.

Until Tuesday next, 9th July, which will be the last day for subscription. The tap will then be turned off. The offer of conversion to holders of 2½ per cent. National War Bonds, 1946–48, will also be closed on 9th July.

Could my right hon. Friend say how much the present issue has brought in to date, and whether he is proposing any new issues, either at the same or a cheaper rate of interest, after next Tuesday?

I am not proposing to put on the market any new tap issue for the present. I shall be glad to give the House a statement when we reach the closing date, but up to date we have a little over £300 million, and we shall get a good deal more than that by this time next week.

Travel Association (Grants)

asked the Secretary to the Treasury what grants have been made to the Travel Association of Great Britain; and what amounts thereof have been allotted to Wales, Scotland, England and Northern Ireland, respectively.

For the first part of the Question I refer the hon. Member to the reply I made to the hon. Member for Sedgefield (Mr. Leslie) on 27th June. The answer to the second part is that no special amount is allotted to any particular country.

Is the Minister aware that there is a widespread desire in Wales and, I believe, Scotland, for this information? Will he not agree that the national tourist industry in these countries should know where they stand?

As I understand the supplementary question, it asks whether figures could be given as to just what had been allotted to various countries. In due time we shall be very glad to do that, but this year has hardly begun and it would be invidious perhaps to try to give figures. In any case that was not the Question put.

May I take it that the Financial Secretary will in due course publish figures relating to Wales, Scotland, England and Northern Ireland?

Questions

Argentine Linseed

asked the Chancellor of the Exchequer whether he will give an assurance that the mission to the Argentine, led by Sir Wilfred Eady, will deal with the question of obtaining a reasonable share of the Argentine's exportable surplus of linseed.

No, Sir. Supplies of linseed are the responsibility of the Ministry of Food, and will not be discussed by Sir Wilfrid Eady's Mission.

Cannot anything be done to improve the supply of linseed, which is desperately short?

The shortage is not one for which I am responsible in the sense of there being any exchange difficulty. It is a question of availability of supplies, and, on that, I think my right hon. Friend the Minister of Food would be the right Minister to ask to make a reply. I am not holding supply up from the point of view of exchange.

Does the right hon. Gentleman mean that the price of the linseed has nothing to do with the shortage?

Is the right hon. Gentleman aware that the lack of linseed oil for paint is reducing exports to a large extent?

Yes, Sir. I am sure that my right hon. Friend the Minister of Food and I, and all of us, would like to get more linseed.

Does not the right hon. Gentleman know how urgent it is for cattle food and paint?

Did the right hon. Gentleman fix a limit above which buyers could not purchase?

That is a different question from the one on the Order Paper, and one to which I think I should be entitled to ask for notice, but I will risk it, and say that the answer is, "No, Sir."

Civil Service

Married Women

asked the Chancellor of the Exchequer whether he has now received the report of the Committee of the National Whitley Council appointed to consider the employment of married women in permanent posts in the Civil Service; and whether he is now in a position to make a statement in regard to the Government's policy in the matter.

Yes, Sir. I have received this report, and am now studying it. I hope to make a statement in due course.

I rather think not, but I will look into that matter. There are differences of opinion on this subject on the staff side of the Civil Service.

Evacuation

asked the Financial Secretary to the Treasury if he will furnish the total additional cost to the Treasury arising from the evacuation of Government Departments to provincial centres.

asked the Financial Secretary to the Treasury whether he is prepared to consider applications for transfer back to London of all those civil servants whose evacuation to the provinces has caused financial or other hardship.

The employing Departments do their best to meet individual cases of acute personal hardship involved by evacuation.

Questions

Spanish Republican Guerillas

asked the Secretary of State for War what arrangements his Department has made for rewarding and assisting Spanish Republican guerillas, who cooperated with British forces during the occupation and liberation of France.

No Spanish Republican guerilla forces operated with British Forces during the campaign in question. It is understood that a small group of Spanish Republican guerillas cooperated with the French Resistance Movement.

Would my hon. Friend look at this question again and, if I put another question down, give me another answer? I think he must be mistaken because there certainly were Spanish guerillas cooperating with various British services and I think that if he discusses the matter with some of his colleagues he will be able to reply.

If my hon. Friend has any additional information he would like to have I will do so.

As one of those who cooperated with the Republican Forces, may I ask the hon. Gentleman whether he is aware that the award has already been given in very large monetary form?

I am not aware and perhaps the hon. Gentleman will give me a little information.

Civilian Internment Camps, Germany

asked the Secretary of State for War whether he has carried out an investigation of the four Sennelager prisoner-of-war camps near Paderborn; whether court-martial proceedings have been taken against the officers commanding these camps; and whether he has taken action which will counter the disquieting impressions which life in these camps has had on the civil population in the British zone in Germany.

I am circulating in the OFFICIAL REPORT a statement on civilian internment camps in Germany, including the four Sennelager camps near Paderborn. Court-martial proceedings have not been taken against the officers commanding these camps and are not considered necessary. I am not convinced that disquieting impressions of these camps have existed in the British zone in Germany but I will ask my right hon. Friend the Chancellor of the Duchy of Lancaster, under whose charge these camps recently came, to see that the civil population is informed of the actual conditions prevailing in the camps. As he indicated in his reply to my hon. Friend the Member for Southern Derby (Mr. Champion) on 3rd June, it is hoped that the improvements made will soon show good results.

Following is the statement:

Certain allegations concerning the conditions in civilian internment camps in Germany, in particular those near Paderborn, appeared in the Press at the end of May and questions have also been asked on the subject in this House. I have now obtained a full report on these camps.

Civilian internment camps in the British zone of Germany were formed about the time the war ended. There are nine such camps, with a total capacity of 50,000. The individuals held in these camps are the worst elements in Germany. Arrangements for the trial of war criminals and other arrest categories depend, not only in the British zone but throughout Germany, on results of Nuremberg and similar trials. War criminals have always been segregated from other internees and at Paderborn are in a separate compound. The total number of war criminals is about 2,000.

Conditions in these camps have admittedly been crowded, food has been meagre though always up to the scale allowed, and morale has been low. In each camp there is a system of control whereby German compound leaders assist in the administration and have direct access to the camp commandant. This ensures that internees may have an opportunity of putting forward their views. The conditions in camps have at all times been well known to H.Q., B.A.O.R., and there have been frequent visits by their representatives. The standard aimed at was that the internees should live in a way comparable with that of the average civilian outside. This has been largely achieved and living accommodation, latrines, hospitals, etc., are satisfactory on that basis. Throughout the male and female camps sanitary arrangements have been under the supervision of a British medical officer. They have always been sufficient. Hot showers have been available three times a month for both women and men. A mobile laundry was provided in February and before that internees were issued with soap for washing their own clothes. There was a shortage of beds. 50 per cent. of the occupants have had beds since last September and provision has been made since at the rate of 400 per month. Beds were 100 per cent. complete in March. It should be noted that British troops, in certain cases, were without beds up to December.

Women have always enjoyed somewhat better conditions than men. They had the same rations and their state of health has been better throughout. The allegation that pregnant women were only allowed out of camp for one month is incorrect. Until the authorities were satisfied that the camps were suitable for young children, these women were released from camp for one month before childbirth and for three months after to enable them to find fostermothers. Now they may return to the camp with the child.

These camps have been rationed, from the outset, from German sources. The scale has been laid down by the Control Commission, in relation to the scale for the civilian population of Germany. Internees have been given a basic scale of 200 calories more than the civilians outside, to compensate for the fact that they cannot obtain extras. Further, workers get additional food and hospital diet is authorised, on medical advice, even when the internee is not admitted to hospital. The quality of the rations has at times been poor but the same criticism would apply to that of the rations available to the general public.

Finally, it is wholly untrue to suggest that the conditions in these camps were hushed up. Regular inspections were carried out of all camps, the camp at Paderborn receiving as much attention as, if not more than, the others. Improvements have been made steadily ever since the camps started and it is not correct to suggest that these have been confined to the last month or so. The Army in Ger- many have done great work in improving conditions generally throughout the British zone and, although the civilian internment camps were necessarily low in priority, it is entirely wrong to suggest that they callously neglected their duty to ensure humane conditions in them. I am satisfied that all concerned fully appreciated their responsibilities and did their best in very difficult circumstances.

Business of the House

May I ask the Leader of the House whether in view of the Motion on the Paper to suspend the Rule so that Government Business may be exempted, he can tell us what the Government's intentions are and how far they hope to get?

We desire to obtain the Committee stage of the Cable and Wireless Bill and the Committee stage of the Army Excess, and Navy and Air Expenditure, 1944. We hope that it will be possible to complete this Business so that we can resume the adjourned Debate on the Second Reading of the Diplomatic Privileges (Extension) Bill at a reasonable hour.

I hope that the Leader of the House will give reasonable time for this discussion. He will bear in mind certain issues which arose in a previous Parliament. It seems reasonable to ask for two or three hours' Debate.

The right hon. Gentleman did have some trouble. We seem to be having more. But this Bill has been down twice, and I would be very much obliged if the House would try to get it through tonight. I hope the earlier Business may not occupy so long that we cannot take it.

Broadcasting Policy (White Paper)

The House may like to know that copies of the Government's White Paper on broadcasting policy will be available in the Vote Office at five o'clock this afternoon.

Business of the House

Motion made, and Question put,

"That the Proceedings on Government Business be exempted, at this day's

Sitting, from the provisions of the Standing Order (Sittings of the House)."—[ Mr. Herbert Morrison.]

The House divided: Ayes, 245; Noes, 113.

Division No. 227.]

AYES.

[3.44 p.m.

Adams, Richard (Balham)

Fletcher, E. G. M. (Islington, E.)

Monslow, W.

Allen, Scholefield (Crewe)

Foot, M. M.

Montague, F.

Anderson, F. (Whitehaven)

Forman, J. C.

Moody, A. S.

Attewell, H. C.

Foster, W. (Wigan)

Morgan, Dr. H. B.

Austin, H. L.

Freeman, Peter (Newport)

Morley, R.

Awbery, S. S.

Gaitskell, H. T. N.

Morris, Lt.-Col. H. (Sheffield, C.)

Ayles, W. H.

Ganley, Mrs. C. S.

Morrison, Rt. Hon. H. (Lewisham, E.)

Ayrton Gould, Mrs. B.

Gibbins, J.

Mort, D. L.

Bacon, Miss A.

Glanville, J. E. (Consett)

Moyle, A.

Balfour, A.

Gordon-Walker, P. C.

Murray, J. D.

Barton, C.

Greenwood, Rt. Hon. A. (Wakefield)

Naylor, T. E.

Battley, J. R.

Greenwood, A. W. J. (Heywood)

Neal, H. (Claycross)

Bechervaise, A. E.

Grenfell, D. R.

Nichol, Mrs. M. E. (Bradford, N.)

Belcher, J. W.

Grey, C. F.

Nicholls, H. R. (Stratford)

Bellenger, F. J.

Griffiths, D. (Rother Valley)

Noel-Baker, Capt. F. E. (Brentford)

Benson, G.

Griffiths, Rt. Hon. J. (Llanelly)

Noel-Buxton, Lady

Bing, G. H. C.

Gruffydd, Prof. W. J.

Oldfield, W. H.

Binns, J.

Guest, Dr. L. Haden

Orbach, M.

Blackburn, A. R.

Gunter, Capt. R. J.

Paget, R. T.

Boardman, H.

Hall, W. G. (Colne Valley)

Paling, Will T. (Dewsbury)

Bottomley, A. G.

Hamilton, Lieut.-Col. R.

Palmer, A. M. F.

Bowden, Flg.-Offr. H. W.

Hannan, W. (Maryhill)

Parker, J.

Bowen, R.

Hardy, E. A.

Parkin, Flt.-Lieut. B. T.

Braddock, Mrs. E. M. (L'pl, Exch'ge)

Harris, H. Wilson

Paton, Mrs. F. (Rushcliffe)

Braddock, T. (Mitcham)

Harrison, J.

Pearson, A.

Brook, D. (Haifax)

Hastings, Dr. Somerville

Peart, Capt. T. F.

Brooks, T. J. (Rothwell)

Haworth, J.

Perrins, W.

Brown, George (Belper)

Henderson, A. (Kingswinford)

Piratin, P.

Brown, T. J. (Ince)

Henderson, Joseph (Ardwick)

Porter, E. (Warrington)

Bruce, Maj. D. W. T.

Hicks, G.

Porter, G. (Leeds)

Buchanan, G.

Hobson, C. R.

Price, M. Philips

Burden, T. W.

Holmes, H. E. (Hemsworth)

Proctor, W. T.

Burke, W. A.

House, G.

Randall, H. E.

Butler, H. W. (Hackney, S.)

Hughes, Emrys (S. Ayr)

Ranger, J.

Byers, Lt.-Col. F.

Hughes, Hector (Aberdeen, N.)

Rankin, J.

Castle, Mrs. B. A.

Hynd, J. B. (Attercliffe)

Reeves, J.

Chamberlain, R. A.

Irving, W. J.

Reid, T. (Swindon)

Champion, A. J.

Janner, B.

Richards, R.

Chater, D.

Jeger, G. (Winchester)

Ridealgh, Mrs. M.

Chetwynd, Capt. G. R.

Jones, D. T. (Hartlepools)

Roberts, Goronwy (Caernarvonshire)

Clitherow, Dr R.

Jones, J. H. (Bolton)

Rogers, G. H. R.

Cluse, W. S.

Keenan, W.

Royle, C.

Cobb, F. A.

Kenyon, C.

Scollan, T.

Cocks, F. S.

Kinley, J.

Segal, Dr. S.

Coldrick, W.

Kirby, B. V.

Shackleton, Wing-Cdr. E. A. A.

Collick, P.

Kirkwood, D.

Sharp, Lt.-Col. G. M.

Collins, V. J.

Lang, G.

Silverman, S. S. (Nelson)

Colman, Miss G. M.

Lavers, S.

Skeffington, A. M.

Comyns, Dr. L.

Lee, F. (Hulme)

Skeffington-Lodge, T. C.

Cooper, Wing-Comdr. G.

Lee, Miss J. (Cannock)

Skinnard, F. W.

Corbet, Mrs. F. K. (Camb'well, N.W.)

Leslie, J. R.

Smith, S. H. (Hull, S.W.)

Corlett, Dr. J.

Lever, Fl. Off. N. H.

Smith, T. (Normanton)

Cove, W. G.

Levy, B. W.

Snow, Capt. J. W.

Crawley, Flt.-Lieut. A.

Lewis, A. W. J. (Upton)

Solley, L. J.

Crossman, R. H. S.

Lewis, J. (Bolton)

Sorensen, R. W.

Daggar, G.

Lewis, T. (Southampton)

Sparks, J. A.

Daines, P.

Lindgren, G. S.

Stamford, W.

Dalton, Rt. Hon. H.

Lipson, D. L.

Stewart, Capt. Michael (Fulham, E.)

Davies, Clement (Montgomery)

Logan, D. G.

Stubbs, A. E.

Davies, Ernest (Enfield)

McAdam, W.

Swingler, S.

Davies, Harold (Leek)

McGhee, H. G.

Symonds, Maj. A. L.

Davies, Haydn (St. Pancras, S.W.)

Mack, J. D.

Taylor, H. B. (Mansfield)

Davies, R. J. (Westhoughton)

McKinlay, A. S.

Taylor, R. J. (Morpeth)

Dobbie, W.

Maclean, N. (Govan)

Thomas, George (Cardiff)

Driberg, T. E. N.

McLeavy, F.

Thorneycroft, H. (Clayton)

Dumpleton, C. W.

MacMillan, M. K. (Western Isles)

Thurtle, E.

Durbin, E. F. M.

Macpherson, T. (Romford)

Tiffany, S.

Edwards, A. (Middlesbrough, E.)

Mainwaring, W. H.

Timmons, J.

Edwards, Rt. Hon. Sir C. (Bedwellty)

Mann, Mrs. J.

Titterington, M. F.

Edwards, John (Blackburn)

Manning, Mrs. L. (Epping)

Tolley, L.

Edwards, W. J. (Whitechapel)

Marquand, H. A.

Tomlinson, Rt. Hon. G.

Evans, J. (Ogmore)

Mayhew, C. P.

Usborne, Henry

Evans, S. N. (Wednesbury)

Messer, F.

Vernon, Maj. W. F.

Ewart, R.

Mikardo, Ian

Viant, S. P.

Farthing, W. J.

Mitchison, Maj. G. R.

Walker, G. H.

Wallace, G. D. (Chislehurst)

Wilkins, W. A.

Woods, G. S.

Wallace, H. W. (Walthamstow, E.)

Willey, F. T. (Sunderland)

Yates, V. F.

Warbey, W. N.

Willey, O. G. (Cleveland)

Young, Sir R. (Newton)

Watkins, T. E.

Williams, J. L. (Kelvingrove)

Younger, Hon. Kenneth

Watson, W. M.

Williams, W. R. (Heston)

White, H. (Derbyshire, N.E.)

Wills, Mrs. E. A.

TELLERS FOR THE AYES:

Whiteley, Rt. Hon. W.

Wilson, J. H.

Mr. Simmons and

Wilkes, Maj. L.

Wise, Major F. J.

Mr. Collindridge.

NOES.

Allen, Lt.-Col. Sir W. (Armagh)

Hinchingbrooke, Viscount

Osborne, C.

Assheton, Rt. Hon. R.

Hollis, M. C.

Peake, Rt. Hon. O.

Astor, Hon. M.

Holmes, Sir J. Stanley (Harwich)

Pickthorn, K.

Baldwin, A. E.

Hudson, Rt. Hon. R. S. (Southport)

Prescott, Stanley

Barlow, Sir J.

Hurd, A.

Ramsay, Maj. S.

Beechman, N. A.

Hutchison, Col. J. R. (Glasgow, C.)

Reed, Sir S. (Aylesbury)

Boles, Lt.-Col. D. C. (Wells)

Jeffreys, General Sir G.

Reid, Rt. Hon. J. S. C. (Hillhead)

Boyd-Carpenter, J. A.

Jennings, R.

Robinson, Wing-Comdr. Roland

Braithwaite, Lt.-Comdr. J. G.

Lambert, Hon. G.

Ross, Sir R.

Buchan-Hepburn, P. G. T.

Lancaster, Col. C. G.

Sanderson, Sir F.

Bullock, Capt. M.

Langford-Holt, J.

Savory, Prof. D. L.

Butcher, H. W.

Legge-Bourke, Maj. E. A. H.

Shephard, S. (Newark)

Challen, C.

Lennox-Boyd, A. T.

Shepherd, W. S. (Bucklow)

Channon, H.

Linstead, H. N.

Smiles, Lt.-Col. Sir W.

Clifton-Brown, Lt.-Col. G.

Lloyd, Maj. Guy (Renfrew, E.)

Snadden, W. M.

Conant, Maj. R. J. E.

Low, Brig. A. R. W.

Stanley, Rt. Hon. O.

Cooper-Key, E. M.

Lucas, Major Sir J.

Stewart, J. Henderson (Fife, E.)

Crookshank, Capt. Rt. Hon. H. F. C.

Lucas-Tooth, Sir H.

Stoddart-Scott, Col. M.

Crosthwaite-Eyre, Col. O. E.

Lyttelton, Rt. Hon. O.

Strauss, H. G. (English Universities)

Crowder, Capt. J. F. E.

MacAndrew, Col. Sir C.

Stuart, Rt. Hon. J. (Moray)

Cuthbert, W. N.

Macdonald, Capt. Sir P. (I. of Wight)

Sutcliffe, H.

Davidson, Viscountess

Mackeson, Lt.-Col. H. R.

Taylor, Vice-Adm. E. A. (P'ddt'n, S.)

De la Bère, R.

McKie, J. H. (Galloway)

Teeling, William

Digby, Maj. S. W.

Maclay, Hon. J. S.

Thomas, J. P. L. (Hereford)

Dodds-Parker, A. D.

Macmillan, Rt. Hon. Harold (Bromley)

Thorneycroft, G. E. P. (Monmouth)

Dower, Lt.-Col. A. V. G. (Penrith)

Macpherson, Maj. N. (Dumfries)

Thornton-Kemsley, C. N.

Drewe, C.

Maitland, Comdr. J. W.

Thorp, Lt.-Col. R. A. F.

Dugdale, Maj. Sir T. (Richmond)

Marlowe, A. A. H.

Touche, G. C.

Duthie, W. S.

Marples, A. E.

Turton, R. H.

Eden, Rt. Hon. A.

Marsden, Capt. A.

Walker-Smith, D.

Fleming, Sqn.-Ldr. E. L.

Marshall, D. (Bodmin)

Ward, Hon. G. R.

Fletcher, W. (Bury)

Mellor, Sir J.

Webbe, Sir H. (Abbey)

Fraser, Maj. H. C. P. (Stone)

Moore, Lt.-Col. Sir T.

White, Sir D. (Fareham)

Galbraith, Cmdr. T. D.

Morris-Jones, Sir H.

Willoughby de Eresby, Lord

George, Maj. Rt. Hon. G. Lloyd (P'ke)

Morrison, Maj. J. G. (Salisbury)

York, C.

Glossop, C. W. H.

Morrison, Rt. Hn. W. S. (Cirencester)

Young, Sir A. S. L. (Partick)

Grimston, R. V.

Mott-Radclyffe, Maj. C. E.

Hannon, Sir P. (Moseley)

Nutting, Anthony

TELLERS FOR THE NOES

Head, Brig. A. H.

O'Neill, Rt. Hon. Sir H.

Commander Agnew and

Mr. Studholme.

Orders of the Day

Cable and Wireless [Money] (No. 2)

Resolution reported:

"That for the purposes of any Act of the present Session to bring the share capital of Cable and Wireless Limited (in this Resolution referred to as 'the operating company') into public ownership, to provide for the cost of making certain payments to the operating company in connection with reductions in its charges and for purposes connected with the matters aforesaid, it is expedient to authorise the payment out of moneys provided by Parliament of such sums as may be required for the purpose of any undertaking given by the Treasury to Cable and Wireless (Holding) Limited for indemnifying that company against liabilities under any agreement entered into by it before the eighteenth day of April nineteen hundred and forty-six, as surety for, or jointly and severally with, the operating company, being liabilities in respect of pensions and other benefits payable on the death or retirement of persons in employment with the operating company or with any other company of body whose telegraph business was acquired by the operating company, or of the sufficiency or administration of any fund for the provision of such pensions or other benefits."

Resolution agreed to.

Cable and Wireless (Recommitted) Bill

Considered in Committee.

[Major MILNER in the Chair]

CLAUSE 1.—(Transfer of shares, and right to compensation therefor.)

3.55 p.m.

I beg to move, in page 1, line 13, to leave out from "companies," to "and," in line 17, and to insert:

"registered as the owners of the said shares on the appointed day."

This Amendment is not a controversial but a technical one, and it arises in this way. Among the companies holding shares on 18th April, 1946, was the Marconi's Wireless Telegraph Co. Ltd., which held about 2,500,000 shares in what, for convenience, I might call the holding company, and I understand it has been agreed between the Government and Cable and Wireless (Holding) Ltd. that Marconi's Wireless Telegraph Co., should be sold exclusive of those shares which the Marconi Co. itself holds in the holding company. Therefore the Marconi Co., will distribute its holding in Cable and Wireless to the holding company, before the appointed day, and will pay on that transfer Stamp Duty. Subsequently, according to the original drafting of the Bill, the compensation stock would be payable to the Marconi Co., and thence to the holding company, which would attract Stamp Duty again. The Amendment has one object only that of ensuring that Stamp Duty is paid only once, and that this routing, so to speak of the compensation stock through the Marconi Co., does not take place. I hope the Amendment will be accepted by the Government because, as the Clause is at present drafted, it seems to be a form of larceny so petty as to be beneath the consideration of any Chancellor of the Exchequer. I hope, therefore, that he will either accept the Amendment or give us the assurance that the company will be exempt from paying Stamp Duty twice.

As the right hon. Gentleman has said, this Amendment has been put down by the Opposition obviously to help the Marconi Co. in the transfer of shares which is about to take place. We cannot accept it for two reasons. The first is that the company and the holding company knew when the Bill was published what were its terms, and it would have been open to them, had they been so minded, so to draft the agreement between the Marconi Company and the holding company, that they did not pay Stamp Duty twice on the transfer. On the face of it, there is a good deal in what the right hon. Gentleman has said but, if we accepted this Amendment, it would definitely mean a very great deal of redrafting of this fairly short Bill. As the Committee will perhaps remember, Clause 4 (I) provides for contingencies such as the right hon. Gentleman has mentioned, and that being so, coupled with the fact that the company in anything it has done has acted with its eyes open, and that if the Amendment would mean a great deal of new drafting, I ask the Committee to reject it.

I can see that from the strictly Treasury and Governmental point of view there is a good deal to be said for the Financial Secretary's argument, but it may be that this much harassed company, faced by its coming extinction, may have overlooked this point. The sum involved is small and it seems hard that the company should have to pay double taxation because of a mere oversight—perhaps on the part of the company's lawyers, because lawyers, like politicians, are not infallible. I wonder whether the Financial Secretary having consulted with the Chancellor of the Exchequer, and both having consulted with their hardworking officials, could, out of grace, consider whether this small measure of compassion should not be granted to the company.

4.0 p.m.

We do not really know the facts as to the agreement. I do not know whether either of the two right hon. Gentlemen who have spoken know the facts. It may well be that the advice we gave in order to get over the difficulty was that the company should so draft the agreement with the Marconi Company as to take into account all these provisions. We do not know whether in fact they did so or not. This agreement is not before us. I am advised that if they did not do that, Clause 4 (1) does provide for the substituted stock. I am not aware of any difficulty and, unless the right hon. Gentleman can give some information about the agreement, it is difficult to carry the matter much further. It is true that, in a sense, there is very little in it, but it would be awkward to accept the Amendment, and make consequential changes in the Bill. We are prepared to have a consultation about it, and to see where we are. Perhaps some way out might be found, short of accepting the Amendment which would lead to complicated consequences.

I thank the Chancellor for that assurance. I am not fully informed of what the agreement is, and it is, naturally, subject to Government approval at this stage. If the Chancellor were willing to turn a friendly eye towards an amendment of the agreement, which would avoid double taxation, it will not be necessary to press the matter further.

All that is needed is that, in framing the agreement, the company should act on the advice which my advisers have already given them and obviously, therefore, we should not object, at this stage, to an amendment of the agreement.

I beg to ask leave to withdraw the Amendment.

Amendment, by leave, withdrawn.

Clause ordered to stand part of the Bill.

Clauses 2 and 3 ordered to stand part of the Bill.

CLAUSE 4.—(Consequential provisions as to associated companies.)

I beg to move, in page 4, line 25, at the end, to add:

"(4) There shall be paid out of moneys provided by Parliament such sums as may be required for the purpose of any undertaking given by the Treasury to Cable and Wireless (Holding) Limited for indemnifying that company against liabilities accruing after the appointed day under any agreement entered into by it before the said eighteenth day of April as surety for, or jointly and severally with, the operating company, being liabilities in respect of pensions and other benefits payable on the death of retirement of persons in employment with the operating company, or with any other company or body whose telegraph business was acquired by the operating company, or of the sufficiency or administration of any fund for the provision of such pensions or other benefits."

This Amendment will not lead to any difference of opinion. Indeed, it is made at the request of the company. The position is that, following on the merger of 1928, the holding company assumed certain liabilities as surety for the operating company in regard to various pension and benevolent funds. The purpose of the Amendment is that the Treasury should indemnify the holding company against those liabilities.

The intentions underlying this Clause appear to me to be admirable, but the great latitude given to the Treasury in the first two lines of the Amendment is open to serious objestion. The Amendment says:

"There shall be paid out of moneys … such sums as may be required for the purpose of any undertaking.…"

The Treasury will have investigated what the liabilities of the company are in regard to pension funds, and guarantees, and could give specific undertakings that they will be honoured. All that the Amendment means is that the company will be indemnified to such an extent as the Treasury may determine. This is another evidence of the way in which things are being rushed. It is not difficult to find out from the books of the company what the liabilities are and to underwrite them in an unequivocal way. But, as the Treasury has no time or inclination to deal with things in that way, they approve of one of these "overcoat" enactments to provide that these things shall be safeguarded in a very general manner. I think we ought to have something more definite.

I, on the other hand, wish to congratulate the Chancellor of the Exchequer on this Amendment. As he knows, I am rather interested in what is going to happen to the employees who are taken over. I am not so sure that it is possible on all occasions to say actuarially what the financial liabilities will be, especially in respect of retirement. One can always say actuarially what will happen to a staff when they all have to retire at a given age, and what the contributions and benefits will be, but possibly some of these employees will retire because the company is being transferred to the State. I am pleased with what the Chancellor has done, and with the statement he made on Second Reading, which has given satisfaction to the employees that their conditions of employment would not be worsened when the business is transferred to the State. I think he should now say that, in the payment of retirement pensions, whether on age grounds or otherwise, the conditions after transfer to the State will not be worse than they would have been under a private company. It is probable that that will be so, but it is not impossible that it might not be so.

May I ask the Chancellor for more information in regard to this undertaking? It is reasonable to assume that the Treasury do not give undertakings without some idea of the scope of those undertakings. If they have such knowledge, why is the Committee not told of it? I suggest that if we were given some idea of the scope, this would be a further assurance to the employees whom the hon. Member for Westhoughton (Mr. Rhys Davies) is anxious, as we are, to help.

As a matter of fact, this question does not, in any way, relate to the relationship between the Treasury and employees. It is limited very strictly to a relationship between the Treasury and the holding company. The holding company has certain liabilities to its employees which it cannot get out of, and it will be severed from the operating company. The Treasury is guaranteeing the holding company against those liabilities, but is not guaranteeing the employees at all. What will have to be done, in respect of the employees, will be a responsibility of the Treasury in the future.

This seems to be a minimum technical requirement to make it financially possible for the Treasury to give effect to any undertaking which is reached. I should have thought that it would be possible for some further information to be given on what the obligation of the Treasury is to be. Provision should be made, in the event of disagreement between the holding company and the Treasury, on whether or not the obligation is being properly discharged, for some form of arbitration. Would it not be possible to have, first, some recognition of the obligation the Treasury intends to assume, and then some provision for arbitration in the event of disagreement between the company and the Treasury?

I do not think we need complicate the matter by an arbitration clause. The position is simple. The company asked for something of this kind, and did not in fact give us the necessary documents on which to base an assumption of what the liabilities would be, until 20th June. That was the date on which the Financial Resolution had to be put down. There is nothing to quarrel about here. We are not going to "do them down," or try to catch them out. This is a provision to help these people. I intend to look at the instruments, and see if there is any difficulty. There is another place where, if necessary, an Amendment could be inserted. I do not think it will be necessary, but I give an undertaking that we shall look at these instruments and see whether a decision can be imported to the Clause. If so, the Government will move if necessary when the Bill reaches another place. I am advised that we are not taking the Report stage today, so the undertaking is that we shall have a look at it before the Report stage is taken here. I do not think anyone who is solicitous on behalf of these people, need be worried about the wording of this Clause.

The Chancellor refers to another place. This Government ought to be deeply grateful for it. It certainly repairs some of the omissions which occur in their ill-begotten, ill-put-together legislation. I see the right hon. Gentleman's point about the documents only being delivered by 20th June. But, if we are suffering from speed, it is entirely due to his own streamline.

If the Chancellor will look at the proceedings on the Coal Bill in the House of Lords, he will see that they do. The fact that in this case the company have not been able to cover all the aspects of their affairs is, undoubtedly, due to the undue haste of the Government. The Chancellor, in his graceful way, has admitted the fact today, and promises that he will look into these various points. If we could extract another promise from him, we could leave this Clause altogether, the promise being that no employee of Cable and Wireless will suffer from the nationalisation of this company by the Government. I speak feelingly, because I happen to know that there are many employees in Cable and Wireless receiving quite humble salaries, with no protection from trade unions and no other form of protection. In fact they are members of the lower middle class. If the Chancellor could give an undertaking that nothing will be done by the Government to make the conditions of employment worse, we could say "Goodbye" to the Clause, in the sure and certain hope that nothing would be done to the detriment of these employees.

4.15 p.m.

Such an assurance would be out of Order on this Clause, which does not touch the position of the individual. The matter which the right hon. Gentleman has mentioned will come before us on a new Clause which will shortly be considered.

As I understand it, the Chancellor has undertaken to look into these instruments. The doubts in my mind were raised by the nature of the Government Amendment itself. If the Amendment had said that the liabilities, assuming that they were properly entered into by the holding company, were to be assumed by the Government, one would have had no suspicion of this Clause. But it is not framed in that way. The Clause induces the suspicion that there are matters which, under it, the Government would be free to raise with the company, saying, "We do not like the actuarial smell of the arrangement you have entered into with regard to A, B or C." If the Chancellor will give us an assurance that, in the main, he is satisfied that the liabilities are properly entered into, and that the company will therefore be wholly indemnified in the matter, and that he will look into the instruments for that purpose, I shall accept that assurance.

I had better not give the right hon. Gentleman an assurance exactly in that language. I am undertaking to study the instruments to see whether, in the light of that study, there can be devised an alternative Amendment which would give satisfaction to the Treasury and the company.

Coupled with the assurance that the Chancellor intends to meet and indemnify the company in the case of every liability which can be shown to have been properly entered into, with regard to this matter?

I do not think the right hon. Gentleman gets much further by continuing to press me. My purpose is to do everything by agreement, in cooperation with the Opposition, whenever they are willing to play. All I am anxious to do is to look at this matter before the Report stage, to see whether the views of the company and the Treasury can be brought completely together in a revised new Clause. There is no catch in it, but I am anxious not to commit myself in advance of a study of the instruments.

Amendment agreed to.

Clause, as amended, ordered to stand part of the Bill.

Clause 5 ordered to stand part of the Bill.

CLAUSE 6.—(Interpretation.)

I understand that the right hon. Gentleman the Member for Aldershot (Mr. Lyttelton) does not intend to move the Amendment to this Clause which stands in his name and the names of other hon. Members, and that he will discuss the point when a new Clause is moved later.

I am not quite sure how far this actual matter will be in Order on the later new Clause. The two do not quite cover the same point. This Amendment is what might be called a synchronising Amendment. The Clause seeks to put back shares into private ownership if certain events do not occur. If we can touch on this matter on the later Clause, we shall be content to take that course.

Perhaps the right hon. Gentleman had better move and discuss the new Clause at the same time, on the understanding that he will not wish to discuss that Clause again.

Might I put it this way? I would make my remarks extremely short on the Amendment to this Clause if you, Major Milner, would consent to take it and the new Clause separately. I should be in some difficulty if we passed on to the other matter, and with your permission I will, therefore, move my Amendment to this Clause, and speak very briefly upon it.

I beg to move, in page 4, line 35, after the second "day," to insert:

"not being a day before the necessary measures have been taken by the competent legislative authorities for bringing into public ownership the cable and wireless assets in the Dominion of Canada, the Commonwealth of Australia, the Dominion of New Zealand, the Union of South Africa, the Dominion of Southern Rhodesia and India."

The object of the Amendment is to prevent the inconvenience, and it may be chaos, which would occur in the transitional period, if, in fact, the appointed day here occurs before the Dominions have introduced the necessary legislation. We should find an Imperial network of communications, part of which would be Government owned and part in transition from one kind of ownership to another, and a great deal of disorganisation would result. This Amendment is designed to synchronise the bringing into public ownership of those assets in this country with similar action by the Dominions overseas. If the Government accept the Amendment they will have a better Bill than they now have. Otherwise I expect that there will be a great deal of disorganisation during the transitional period.

I hope the Government will accept this Amendment. I believe it will make for something which they tell us they admire very much—administrative tidiness. It may even help them in the execution of this somewhat unfortunate venture. It will impose a time limit on the operations of the Dominions, and cause the whole scheme to go forward with one impulse. It would be very fitting if the Chancellor were to accept this Amendment.

When I read this Amendment, I was entirely in agreement with it. Unfortunately, I was prevented from being present at the Second Reading Debate. Since that I have read HANSARD very carefully, and have gone through the evidence given before the Select Committee, and I find myself entirely at a loss to know what the culminating reason is for taking over Cable and Wireless—whether it is a question of efficiency, or whether it is the Government's natural desire—

I was coming to that point. It depends on the prime motive of the Bill. If this Bill is necessary in order to get coordination within the Commonwealth, if its main reason is that the Commonwealth wishes this Bill to go through, then this Amendment seems to me to make good sense. I support the Amendment on the grounds that it fits in with the only valid reason one can see for this Bill. If, by any chance, anything goes wrong in the Commonwealth, should we go ahead with this Bill? That is what we want to know. If the Dominions should not go ahead with nationalisation, this Amendment would surely be necessary to protect the investors in this country.

I hope that the Chancellor will not accept the Amendment. It is a travesty to suggest that planning means doing all things at the same time. It means doing the right things at the right time. The suggestion here is that by some miraculous means we should fix exactly the same day for both the United Kingdom and the. Dominions to acquire the ownership of their undertakings. Quite frankly, that is impossible, and every one knows it is impossible. What would it mean if the Committee were to accept this Amendment? It would mean that we should be last.

It would mean putting us in at the end. If I am right in supposing that it is not possible to synchronise, there is a good reason why we should begin, because we have the largest interest in this matter at the present time. Not only are we concerned with the part of the equipment in the United Kingdom, but with the part of the equipment under the ocean, and so forth. The Dominions are concerned with the part of the equipment within their own territories only. It seems to me highly desirable that we should start, and get on with this matter. By all means let the Dominions get on with their legislation as soon as possible. The remarks of the hon. Member for Montrose Burghs (Mr. Maclay) cast doubt on the intentions of the Dominions. I do not think there is any reason to suppose that the Dominions are having second thoughts about this, but they would be more likely to have them, if we held up the introduction of our own scheme.

I certainly did not intend to cast doubt on the Governments of the Dominions, but the Dominions are still democracies, and they may have something to say before their Governments take the necessary action.

I am grateful to the hon. Member. Is it suggested that unless we have synchronisation or unless we come in last, there will be disorder? What kind of disorder will result merely because there is in one place a different type of legal form from that in another? If so, we should expect disorder now, because there is a variety of arrangements for Cable and Wireless at the Dominions end. There is no reason to suppose that disorder will result if the United Kingdom makes a start with these. The others are following suit, and I hope that the Chancellor will concede nothing on this point.

I cannot see the hon. Member's difficulty about synchronisation, because under this Bill a day will have to be appointed. Presumably, if the Dominions introduce similar legislation, days will have to be appointed under their Measures. As far as I can see, there can be no difficulty in principle in the Government of the United Kingdom and the Governments of the Dominions getting together, and agreeing that they will all appoint the same day for the Measures to come into force.

That point has been sufficiently explained by my right hon. Friend in moving the Amendment. The purpose is to secure that if this Bill is to be implemented at all, it shall be implemented throughout the whole Empire and its components parts, and not merely in this country.

Is the hon. Member suggesting that before Cable and Wireless have been taken under public ownership, in some way messages to Canada and Australia will not get through? What happens now?

That is not the point. The main argument put up for this Bill is that the Dominions want it. If it should prove that one or more of them do not want it, the British Government should be in a position to reconsider and decide whether or not we want it.

Our case is that the Dominion Governments do want it. That is the result of the Conference which was held in London, when the Dominions, with ourselves, got together and came to a certain agreement. We have no evidence whatever that any of the Dominions, or India, have gone back on the decisions taken here in London. On the contrary, we are sure that they desire to go forward with the agreement then reached. As far as this country is concerned, this Bill is the first step towards implementing that agreement We do not want to take over these shares solely because that is an essential part of the Commonwealth telecommunications agreement. We must remember that one reason given for the taking over of these shares was that we had to implement the agreement reached at Bermuda. There fore, whether the Dominions are—

4.30 p.m.

On a point of Order. May I appeal against the light? The hon. Gentleman's point is very difficult to see at the moment.

Perhaps the right hon. Gentleman will not mind my going on while the Chamber is being darkened. As I was saying, it is essential that we should take over these shares in order to implement the undertaking given when the Bermuda agreement was made between this country, the United States and others. My hon. Friend the Member for Blackburn (Mr. J. Edwards) put our case, or the case for the Bill, very well indeed. He quite clearly gave the reasons why we cannot accept this Amendment. The New Zealand Government already own their end of the cable and wireless communications, and that being so, why is it possible for New Zealand to do, without any hurt to international and Dominion communications, what it is said would lead to difficulty and even chaos if we followed suit? Obviously, one cannot tie this thing up and have an agreed date for all the Dominions and the mother country, and we believe that we should take the lead in this matter, knowing that the Dominions have given their word and will undoubtedly follow suit.

I am surprised that hon. and right hon. Gentlemen opposite, who believe in cementing and tightening the bonds of Empire, should throw doubt—as some of them have done—on the Dominions' holding to their bargain and keeping their word. We are positive that the Dominions mean to do so, and that is why we want to go forward with this Bill as it stands. In any case, the wording of the Amendment would be quite unacceptable, because—as hon. and right hon. Gentlemen opposite may care to know India has already taken the first steps in this matter. They have an agreement with the operating company there, an option to take over, and have already given notice to exercise that option in due course. We therefore cannot accept this Amendment. We must go forward. We promised the Dominions that we would, and it is essential to do so in order to implement the Bermuda agreement. I therefore ask the Committee to reject the Amendment.

The Financial Secretary will appreciate that I did not, for one moment, suggest that any Dominion would want to go back on its bargain. What I did suggest was that they might change their minds, as to whether they wanted this scheme or not.

Amendment negatived.

Clause ordered to stand part of the Bill.

Clause 7 ordered to stand part of the Bill.

NEW CLAUSE.—(Compensation to Cable and Wireless (Holding) Ltd.)

(1) Compensation shall be paid by the Operating Company to Cable and Wireless (Holding) Limited in respect of any increase in the expenses of the business of Cable and Wireless (Holding) Limited in so far as such increase is due to the transfer of the shares of the operating company and not reasonably capable of being avoided or mitigated.

(2) The amount of the compensation to be made under this section shall be agreed between Cable and Wireless (Holding) Limited and the operating company or, in default of agreement, shall be determined by arbitration.—[ Mr. Manningham-Buller. ]

Brought up, and read the First time.

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

I hope that this new Clause will not arouse the slightest degree of controversy on anything approaching party lines. It must be recognised, at least by those who have read the proceedings before the Select Committee, that the acquisition of the shares of Cable and Wireless Limited by the Government will throw increased expenses of administration and management upon Cable and Wireless (Holding) Limited. The severance of the two companies by Act of Parliament is bound to have that consequence, and I need not take up much time in moving this Clause, which is designed to give, so far as it can be given, compensation to Cable and Wireless (Holding) Limited for the increased burden thrown upon them. There is a precedent for a Clause like this in the Coal Industry (Nationalisation) Bill, Clause 17, Subsections (1) and (2). There similar provision is made for the giving of compensation where, owing to the severance, an increased burden was cast upon the company which was not acquired by the Government. I venture to submit that it is only equitable that that should be done. In the case of the Coal Bill there was a reference to a district valuation board designated by the Minister to assess compensation in the event of dispute. There is, of course, no similar body appointed under this Bill, and, therefore, the Clause has been drafted in such a way as to allow the matter, in default of agreement, to be determined by arbitration.

I intervene very briefly to support this Clause. Only rarely is anything so clear and so well based in equity as this put forward in such unequivocal language. I do not propose to take up any more time; I will give the Chancellor the opportunity to accept, with his usual grace, a very straightforward piece of legislation, based on justice.

I am surprised that the Government did not include in the Bill originally a Clause designed to do what this proposed new Clause does. The arbitrary severance of organisations such as Cable and Wireless Ltd. and Cable and Wireless (Holding) Ltd., obviously means that a large body of expenditure which was previously shared will, of necessity, be thrown upon one of the parties. There are items of expenditure such as salaries and wages, rent, fuel and light, the maintenance of offices and the miscellaneous expenditure which every company must necessarily incur in the conduct of its business. As a result of this severance, which is not the responsibility of the holding company at all, but which has been initiated by the Government, this extra expenditure will be thrown upon them, and I think it fitting that, in those circumstances, some compensation should be given. There is in addition the question of the salaries and expenses of the chairmen and of the two joint managing directors. These will obviously mean an additional burden upon the holding company. Therefore I hope the Chancellor will accept the new Clause.

We understand perfectly what is behind this, and in so far as displaced officers and employees are concerned—

No, I am all right. We have gone into this very carefully, and I was about to say, if it is desired to refer to these individuals, that, in so far as displaced officers or employees are concerned, we are extremely sympathetic towards what it is desired to do, although we do not believe it essential to put it into a Bill of this kind. It could be done with good will between the parties concerned.

Let me finish. I was going on to say that we really do not know much about the set-up of this company, and it is difficult for us to be helpful if we do not know how many, if any, will be displaced in the way that has been indicated.

On a point of Order. The new Clause deals with the extra expenditure which will be thrown upon the holding company as a consequence of the severance of the two companies previously joined together.

I was coming to that. We do not know yet, quite frankly, whether any extra expense will be thrown either upon the operating company or upon the holding company itself. It is true that they have a building, but I can assure any hon. or right hon. Gentleman opposite that almost anybody in London would be willing to take over that building, and so far as I know if any office accommodation becomes vacant, it will not remain vacant for long. Therefore, there can be no possible loss to the holding company. In addition, we have to remember that already the companies themselves are now putting through a deal in connection with the Marconi Company shares. I do not know whether any staff will be displaced as a result of that, and until these things are sorted out, it is impossible for the Treasury to help, if help is necessary, to meet extra expenditure, if any, that may be incurred because of the change of ownership of the shares of the operating company. That is the position. So far as the directors are concerned—I think the hon. Member for Bucklow (Mr. W. Shepherd) mentioned directors, though others say they do not include directors in this new Clause—where are we? What do hon. Members opposite mean? If it is remuneration for displaced directors that they are after, why not say so, and let us know where we are? But as the Clause reads all that the Opposition want is compensation for what they call severance. Severance may be of different kinds—

May I ask the Financial Secretary which Clause he is now discussing, because so far I have not heard any remark which has even a remote relation to the point we are now considering?

I am sorry about that. I was going partly by the words of the Clause and partly by the speeches. The speeches have dealt with individuals—

So far as individuals are concerned, I only mentioned the expenses, and not even the salaries, of the chairmen and the joint managing directors. I did not mention salaries at all. We are not dealing with individuals' compensation.

What are the expenses, and to what extent, if any, will these expenses be increased because the Government are now taking over Cable and Wireless shares under this Bill? We cannot possibly help the Opposition, if we do not know the facts. We have looked at this Clause, and in so far as we understand it, it is unacceptable, because we are working in the dark and we have not the slightest information on what hon. and right hon. Gentlemen are trying to do. If they are trying to prevent an injustice being done, and if it can be shown, when we are given the facts of the case, that an injustice is being done, either to the staft—I hesitate to use the word again—or because some building they have to use will be only partly occupied, we are very willing to look at these things and if anything can be done, to do it.

I am sorry to say that the speech of the Financial Secretary makes one thing quite clear, namely, that he has not studied, if he has indeed read, the terms of the Clause now under consideration. The only other point which emerges clearly from his speech was an argument which seemed to show that this Bill should be read a Second time on this day six months. What does he say about it—though half his remarks were not directed to this Clause at all: "We cannot accept this Clause because we are working in the dark and we do not know the facts." We had the Second Reading of this Bill a considerable time ago; we had a hearing before a Select Committee of this House, and for the Government to come down here now and say that they cannot accept the Clause, which it appears that they have not carefully studied, because they are working in the dark and do not know the facts, is a most astonishing proposition. Why have they not made some inquiry of the company, a perfectly easy thing to do? Are they so hostile to the company that they did not even put through a telephone call if they were in doubt, to ascertain whether increased expenses would be cast upon Cables and Wireless (Holdings) Limited? I tried to move this new Clause in a very short space of time; I am sorry now that I did so, because it is quite apparent that by trying to save time, I have failed entirely to make the point of the Clause clear to the hon. Gentleman. I draw his attention to Subsection (1), which says:

"(1) Compensation shall be paid by the-Operating Company to Cable and Wireless (Holdings) Limited in respect of any increase in the expenses of the business of Cable, and Wireless (Holdings) Limited. …"

There is no reference there to compensation for displaced persons. The point simply is, if, as a result of the taking over of Cable and Wireless Ltd., the expenses of managing and running Cable and Wireless (Holdings) Ltd. are increased, then, I think, the hon. Gentleman will agree that there is a case for compensation.

4.45 p.m.

How can they be increased, unless they are keeping on staff they cannot use, or paying for office accommodation which is unwanted, because part of the original set-up, the operating company, is no longer there?

They can be increased in this way. There may be arrangements between the two companies whereby certain staff serve both companies at the same time. If there are services which are rendered by both companies, under contract, which are to be carried on and paid for solely by Cable and Wireless (Holdings) Ltd., then the expenses of Cable and Wireless (Holdings) Ltd. will increase to that extent. I will concede that the hon. Gentleman may find it difficult to assess the precise increase until after the appointed day, but I am asking him to recognise the priniciple, by accepting this new Clause, that if there is any increase, in those circumstances, compensation will be paid.

The new Clause goes on:

This is not casting a new burden upon the Treasury. It is merely providing power to do justice, if justice requires to be done; and, really, the hon. Gentleman is not meeting the case for this new Clause by talking about displaced persons, or by saying we are working in the dark and do not know the facts. I ask him to consider this. We do not want to engage in too long an argument about it, but there is a point here, which, I think, should be met.

I still think the Financial Secretary directed nine-tenths of his observations to the next new Clause on the Order Paper, dealing with compensation of officers and servants of the operating company. But in so far as his observations were relevant to the one we are discussing, he supported the case which was made out by my hon. and learned Friend, because his argument was that we do not know whether there is going to be any extra expense upon the operating company, or, if there is, how large it will be. I think he is justified as far as assessment of amount is concerned; he probably does not know what increased expenses there will be for the company. But in so far as he is right in that respect, this new Clause is all the more necessary, so that if expenses are incurred by the operating company there is power to pay compensation.

The Financial Secretary interrupted my hon. and learned Friend with the supposititious case of employees or servants of the company being kept on unnecessarily, or of offices being held though unwanted. That is completely safeguarded by the wording of the new Clause, which says that such expenses shall be paid only where they are not reasonably capable of being avoided or mitigated. The employment of unnecessary servants is not an instance of expense incapable of being mitigated. All that this new Clause seeks to do is to deal with a case which, he himself says, he does not know will arise. The object of the Clause is to say that, if such a case does arise, it will be possible for justice to be done.

I am sorry the Financial Secretary is not prepared to accept the fact that, if a joint undertaking is divided for some reason or another, extra expenses fall upon it, and that there is hardship. It is obvious to anyone with knowledge of business organisation. Where there are two companies running together it is very often the case, and it is so in this case, that offices—the registrar's office, the chief accountant's office and the secretary's office—are joint affairs which work for both the companies. When this Bill becomes law it will be no longer possible for the registrar's department, the secretary's office and the accountant's office to work jointly for the operating company and the holding company, and it will, therefore, be necessary for the holding company to bear a larger share of the cost of operating all those departments. It is for that reason that this new Clause appears on the Order Paper. The Financial Secretary has said, very rightly, it is impossible in the present circumstances to determine the amount of such extra liability. All that this new Clause seeks, is that provision shall be made so that, when this amount is determined, compensation shall be given. I hope that the Financial Secretary will change his mind.

I sincerely hope the Chancellor of the Exchequer is not going to accept this new Clause. The hon. and learned Member for Daventry (Mr. Manningham-Buller) quoted what he said was a precedent, that under the Coal Mines Bill there was compensation for severance. But that is no precedent whatever. If one cuts out of a large industrial concern part of it which is integral to the work of that concern, and part remains in private ownership and in use, there is a burden falling upon the concern involved, for which there is a reasonable and genuine claim to compensation. That is not possible here. The severance here is between the operating company and a company which is nothing but a holding company, and when the operating company is taken away from the holding company the socially valuable functions of the operating company cease. There is no particular reason why Cable and Wireless (Holdings) Ltd. should remain in existence any longer than it takes time to wind it up. If Cable and Wireless (Holdings) Ltd. like to remain as no more than an investment company, we have no liability to them in regard to any expenses they have, having taken away the function for which they really existed. The parallels are quite different.

This matter was raised in the Select Committee, of which I was a Member. We sat for three days. It is true that this question of severance was mentioned by the practitioners, but I do not think that they themselves treated it seriously. They produced no evidence; they dealt with it only in passing; they spent many hours challenging the fundamental principle of the Bill, which was entirely irrelevant. This point which hon. Gentlemen opposite have raised to a great point of principle, they mentioned in passing; they produced no evidence of what their burden would be. They did not even indicate that it was going to be a large burden. If Cable and Wireless themselves seriously considered this a matter of importance, surely evidence would have been produced, instead of the matter's being passed by.

I must say I am surprised by the remarks made by the hon. Gentleman the Member for Chesterfield (Mr. Benson). I thought that he was the solitary financial puritan left in the House of Commons. Since the death of Lord Snowden we have had no Member in the House who has devoted himself so meticulously to the strict canons of finance.

Yes, but on this occasion the hon. Gentleman has fallen rather below his reputation. He begins by telling us that, just because in the Committee upstairs the company raised this matter themselves, we should not deal with the matter here. We appear for no sectional interests in this Committee. I have no interest in Cable and Wireless, and I do not think any of my hon. Friends behind me have, either; but when we are dealing with a Bill of this kind we are not defending the interests of any company—

The purpose of a Committee on a hybrid Bill is to enable interested parties to have the right to say what they consider are their rights, and to raise any matter in which they think they are unfairly dealt with; and I am entitled to say that, because this matter was raised only casually and in passing, they did not consider it very seriously.

After that interesting little lecture, I assure the hon. Gentleman that he is entitled to say anything he likes. That is what Parliament is for—the expression of opinions. I wish to draw his attention to another fact. What I said just now was by way of protest. We deny any connection with Cable and Wireless. We are here to serve the taxpayers of the country, a task long since given up by the Treasury. I was going to suggest that this new Clause is a very simple one. One of my hon. Friends said that if the whole question were examined by the Treasury it might be found that no compensation would be payable. That is quite likely. But, nevertheless, some may be. The hon. Gentleman the Member for Chesterfield, in his disquisition about holding companies, left out one important fact—that since the war it has been found far more convenient for big companies to operate through their subsidiaries, leaving the holding company with the big problems of accountancy, financial policy, and all the other larger affairs of policy which have to be decided by directors. The holding company is most important. It gives instructions to the subsidiary companies. That is perfectly convenient to business men and pleases the Inland Revenue.

It is very difficult, when we take away one of the principal assets of Cable and Wireless, to determine what additional costs are likely to fall on the company. For instance, Cable and Wireless may have contracts with a number of individuals, whereby they are remunerated for doing two jobs of work. Suppose, for the sake of argument, that those employees remain to Cable and Wireless (Holdings) Ltd., and that they have to bear the full brunt of their salaries. That fact imposes an unfair charge upon Cable and Wireless. The Chancellor of the Exchequer may find out, in fact, that there are not many of those people. The Chancellor may, also find out that the accountancy and the secretarial arrangements, and, indeed, the arrangements which have subsisted between the operating company and the holding company for the contracts which have been made for employees, and the overhead expenses incurred in the past, are easily determined. The Chancellor may find that out, but, on the other hand, he may find that there are long term contracts which would impose an unfair obligation on the holding company. It is for that reason that my hon. and learned Friend put down this new Clause.

I feel that the Chancellor might give it consideration. It raises a new point. It obviously is not going to be very costly to the Treasury, and as the Financial Secretary has said he is completely in the dark about this matter, let the Chancellor now come into the light, consult with the company, and find out if, in fact, this scheme of nationalisation imposes upon the company's shareholders too great a hardship in relation to the common services which have obtained between Cable and Wireless and the holding company ever since the two companies were formed.

5.0 p.m.

I do not feel that this Clause is necessary or appropriate. It is true that hon. Members opposite do not speak from briefs—we understand that. This company has an opportunity to speak for itself, and it has spoken for itself in considerable detail and at considerable length, as has been pointed out by my hon. Friend the Member for Chesterfield (Mr. Benson) who presided over the Select Committee. They did not take up this point, and if they did not take up this point, why should anyone else? Evidently the company had no fears. They did not feel that there was anything here which they wished to put before the Select Committee, and to my mind that is evidence that there is no reason for anything on the lines of this Clause Otherwise the hon. and learned Member for Daventry (Mr. Manningham-Buller) might be arguing that the company was most incompetently managed and that Sir Edward Wilshaw could not have stated the case before the Select Committee, and therefore he is to be held responsible. Of course the hon. and learned Member does not say that, and it would be derogatory to Sir Edward Wilshaw. As my hon. Friend, as Chairman of the Select Committee, has stated, this point was not taken up. I have read the proceedings, and no doubt other hon. Members have read them. Since this point was not taken up by counsel briefed on behalf of this important company, I think this proposal is redundant and unnecessary. I should have thought it was a reflection on the able chairman, Sir Edward Wilshaw, to suggest that he did not present his case properly and I must ask the Committee to reject it.

The Chancellor of the Exchequer must really adjust himself to some of the facts we have put before him. He has quite unnecessarily dragged in the name of Sir Edward Wilshaw. The Chancellor said that this point had not been mentioned before, but the point is raised in the petition. It may not have been raised by counsel upstairs, but we all know when we entrust matters to lawyers that sometimes the members of that learned profession are either overworked or occasionally negligent. I would point out that this point should not be judged either on the petition or on the negligence of counsel—it may be that a company under sentence of death does not take the trouble to take out an insurance policy. It is in the petition, and we have raised the matter. I feel that the Chancellor's answer today is much too bland. He raised the question of the competence of Sir Edward Wilshaw. He pointed out that this was a reflection on him, but that is not the case. We have brought a point of substance to the Chancellor of the Exchequer, but he does not appear to be seized of the point; he has written it off with a lot of badinage. If I hand him the petition, then I think he could get up and make an answer which would be adequate to the case we have put before him. I hope that the Chancellor will come down to earth, from his very jovial mood and consider this as a serious Clause, and accept it.

I am sorry if I misunderstood, but it seems to me that the historical accounts given by the Chancellor of the Exchequer and by his hon. Friend behind him differ from each other. I think we ought to get it plain. I understood the Chancellor of the Exchequer to argue that this point ought not to be considered, because it had not been raised in the Select Committee. I should have thought that that was an unfair and an unconstitutional argument. I thought it was a difficult argument to be used by the Chancellor of the Exchequer, because if that is so, surely great trouble should have been taken, for instance, with the Bank of England, to make sure full use was made of the Select Committee procedure, and that trouble was not taken? If we are in an era of nationalisation, it seems to me very important indeed that the House, whether it is the House in general or in Committee, should not be, as it were, estopped from argument by the allegation that all that could be properly left to the Select Committee. I seriously suggest to the Chancellor of the Exchequer to consider again in his own private forum and with his advisers, whether that is a suitable argument for the head of the Treasury to use.

On the more particular point, I did not understand the hon. Member for Chesterfield (Mr. Benson) to give the same account of the facts. I thought he said, and I rather doubted the propriety of his saying it, as Chairman of the Select Committee, that this point was not "seriously" raised before the Select Committee. I rather doubted whether it was in Order for a Chairman of a Select Committee to indicate that something has been raised in a Select Committee, but had not been "seriously" raised. That is a different thing from saying that it was not raised, and it ought to be made quite clear to those who have not followed this matter closely, whether the Chancellor really meant to say that it was not raised at all in the Select Committee, or whether the impression this Committee gained from the hon. Member for Chesterfield is the more correct.

On the general point, it seems plain from all the speeches made on both sides, that it is arguable there may arise some loss of this sort. All the Clause purports to do is to say that in such a case there shall be compensation. If you deny that proposition you are, in fact, saying that not everything ought to be compensated—you can pick and choose—and the Chancellor has got a free hand to say for which destructions by him of legitimate expectation there shall be compensation. He has been boasting in the country that we as taxpayers have bought the Bank of England cheap, got a good bargain; that introduces an element of confiscation; of taking without compensation, and here the argument is apparently that there might conceivably be—and the Financial Secretary with all his wisdom and experience cannot guess how much—losses arising in the way indicated. How can it be argued that if there is such loss, it ought not to be compensated even by arbitration?

We are in the presence of an entirely new doctrine which, coming from the lips of the Chancellor, is rather surprising—the doctrine of the indispensability of chairmen. The Chancellor of the Exchequer said that Sir Edward Wilshaw is chairman of the company and that what he says is to be the final word; that if Sir Edward Wilshaw has not raised this point, no one else has any right to raise it. That is a doctrine which does not seem to me to be quite on the lines of what he has been saying about chairmen of private companies and private enterprise. I believe that hon. Members have every right to raise points of principle, whatever has been said in evidence on other occasions. Surely it is their plain duty, and if they are trying here to see that justice should be done at some future date, and to safeguard in two separate ways, the interests of the taxpayer, no reproach should be made for raising this point. It is obvious, that when it is a case of nationalisation and the taking over of enterprises that one is in the presence of a considerable element of the unknown in regard to the events which may take place during the difficult process. Any Clause put forward to prevent the possibility of injustices, particularly as the interests of the Treasury are so clearly looked after, should be accepted by the Chancellor. He would be taking a wise step in accepting it instead of getting into arguments which are not worthy of him about the chairman of the company.

I feel that we have had very little satisfaction on this matter. None of the points which we raised have been answered. The hon. Member for Chesterfield (Mr. Benson) advanced the peculiar doctrine that what is justifiable as compensation to an industrial company, is unjustifiable in similar circumstances to a company engaged in investments. Surely that is a very peculiar argument. Neither the right hon. Gentleman nor the hon. Member addressed himself to this point. They merely said that it was not seriously raised. It is surprising to be told that the Opposition should not have raised this matter and in doing so are casting a reflection on the chairman of the company. That is all very good fun on a hot afternoon, but it has nothing to do with this Clause, which says that if damage occurs as a result of severance, compensation becomes payable to the holding company. The Treasury are safeguarded under Subsection (1), which states:

"in so far as such increase is due to the transfer of the shares of the operating company and not reasonably capable of being avoided or mitigated."

If the matter is in doubt, it is to be put to arbitration. If no damage is incurred—and we are of course in the dark—then the Clause is innocuous from the Treasury's point of view. But if damage is incurred as a result of severance, are we to be asked to say that, in that case no compensation is to be payable? If the Chancellor would give an assurance that this matter will be looked into in consultation with the company between now and Report stage, I should be quite satisfied. I do not believe that the sums of money involved are likely to be substantial. Nevertheless the principle is one which may arise again if, in the words of the Chancellor, Socialism rolls on. It is the principle that ought to be established.

If the Opposition really feel strongly about this they must, of course, divide the Committee. I cannot think that they really feel very strongly about it, for the reasons I have endeavoured to explain. So far as I am concerned, I think that this Clause is very vague in terms. For the reasons I have given, I think that it is quite unnecessary, but it would not be unnatural, supposing some such loss to the holding company were to arise—which is, I think, exceedingly unlikely—for the holding company to take the matter up in a spirit of amity and good will with the new board of the holding company. Adjustments might be made if there was a case for it, but I do not think we need a statutory provision. I do not wish to beat the battle gong, but I think that the Clause is uncalled for and unnecessary. I prefer the matter to be left to the good sense of the holding company and the operating company in its new form.

5.15 p.m.

I gave the Chancellor of the Exchequer every opportunity of giving

an assurance that this matter would be looked into, in consultations with the companies, between now and the Report stage, and he has rejected that suggestion. He said, "We hope everything will be all right," but we have had no answer to the argument which we have put forward, and, therefore, we have no alternative but to register our protest by dividing the Committee.

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

The Committee divided: Ayes, 133; Noes, 241.

Division No. 228.]

AYES.

[5.16 p.m.

Agnew, Cmdr. P. G.

Head, Brig. A. H.

O'Neill, Rt. Hon. Sir H.

Allen, Lt.-Col. Sir W. (Armagh)

Hinchingbrooke, Viscount

Orr-Ewing, I. L.

Astor, Hon. M.

Hollis, M. C.

Osborne, C.

Baldwin, A. E.

Holmes, Sir J. Stanley (Harwich)

Peto, Brig. C. H. M.

Barlow, Sir J.

Hope, Lord J.

Pickthorn, K.

Baxter, A. B.

Hudson, Rt. Hon. R. S. (Southport)

Prescott, Stanley

Beechman, N. A.

Hurd, A.

Raikes, H. V.

Bennett, Sir P.

Hutchison, Col. J. R. (Glasgow, C.)

Ramsay, Maj. S.

Boles, Lt.-Col. D. C. (Wells)

Jennings, R.

Reid, Rt. Hon. J. S. C. (Hillhead)

Bower, N.

Joynson-Hicks, Lt.-Cdr. Hon. L. W.

Robinson, Wing-Comdr. Roland

Boyd-Carpenter, J. A.

Kingsmill, Lt.-Col. W. H.

Ropner, Col. L.

Bracken, Rt. Hon. Brendan

Lambert, Hon. G.

Ross, Sir R.

Braithwaite, Lt.-Comdr. J. G.

Lancaster, Col. C. G.

Salter, Rt. Hon. Sir J. A.

Buchan-Hepburn, P. G. T.

Langford-Holt, J.

Sanderson, Sir F.

Butcher, H. W.

Legge-Bourke, Maj. E. A. H.

Savory, Prof. D. L.

Butler, Rt. Hon. R.A. (S'ffr'n W'ld'n)

Lennox-Boyd, A. T.

Shephard, S. (Newark)

Carson, E.

Linstead, H. N.

Shepherd, W. S. (Bucklow)

Challen, C.

Lloyd, Maj. Guy (Renfrew, E.)

Smiles, Lt.-Col. Sir W.

Channon, H.

Low, Brig. A. R. W.

Snadden, W. M.

Clifton-Brown, Lt.-Col. G.

Lucas-Tooth, Sir H.

Stanley, Rt. Hon. O.

Cooper-Key, E. M.

Lyttelton, Rt. Hon. O.

Stewart, J. Henderson (Fife, E.)

Crookshank, Capt. Rt. Hon. H. F. C.

MacAndrew, Col. Sir C.

Stoddart-Scott, Col. M.

Crosthwaite-Eyre, Col. O. E.

McCallum, Maj. D.

Strauss, H. G. (English Universities)

Crowder, Capt. J. F. E.

Macdonald, Capt. Sir P. (I. of Wight)

Stuart, Rt. Hon. J. (Moray)

Cuthbert, W. N.

Mackeson, Lt.-Col. H. R.

Taylor, Vice-Adm. E. A. (P'ddt'n, S.)

Davidson, Viscountess

McKie, J. H. (Galloway)

Teeling, William

De la Bère, R.

Maclay, Hon. J. S.

Thornton-Kemsley, C. N.

Digby, Maj. S. W.

Maclean, Brig. F. H. R. (Lancaster)

Thorp, Lt.-Col. R. A. F.

Dodds-Parker, A. D.

Macpherson, Maj. N. (Dumfries)

Touche, G. C.

Donner Sqn.-Ldr. P. W.

Maitland, Comdr. J. W.

Turton, R. H.

Dower, Lt.-Col. A. V. G. (Penrith)

Manningham-Buller, R. E.

Wakefield, Sir W. W.

Drayson, Capt. G. B.

Marlowe, A. A. H.

Walker-Smith, D.

Drewe, C.

Marples, A. E.

Ward, Hon. G. R.

Dugdale, Maj. Sir T. (Richmond)

Marsden, Capt. A.

Webbe, Sir H. (Abbey)

Duthie, W. S.

Marshall, D. (Bodmin)

Wheatley, Colonel M. J.

Eden, Rt. Hon. A.

Marshall, S. H. (Sutton)

White, Sir D. (Fareham)

Fletcher, W. (Bury)

Maude, J. C.

Williams, Gerald (Tonbridge)

Fraser, Sir I. (Lonsdale)

Medlicott, F.

Willink, Rt. Hon. H. U.

Galbraith, Cmdr. T. D.

Mellor, Sir J.

Willoughby de Eresby, Lord

Gammans, L. D.

Moore, Lt.-Col. Sir T.

York, C.

Glossop, C. W. H.

Morris-Jones, Sir H.

Young, Sir A. S. L. (Partick)

Gridley, Sir A.

Morrison, Maj. J. G. (Salisbury)

Grimston, R. V.

Morrison, Rt. Hn. W. S. (Cirencester)

TELLERS FOR THE AYES:

Hannon, Sir P. (Moseley)

Mott-Radclyffe, Maj. C. E.

Mr. Studholme and

Harris, H. Wilson

Neven-Spence, Sir B.

Major Conant.

Harvey, Air-Comdre. A. V.

Nutting, Anthony

NOES.

Adams, Richard (Balham)

Bacon, Miss A.

Boardman, H.

Adams, W. T. (Hammersmith, South)

Baird, Capt. J.

Bowden, Flg.-Offr. H. W.

Allen, A. C. (Bosworth)

Balfour, A.

Bowen, R.

Allen, Scholefield (Crewe)

Barton, C.

Bowles, F. G. (Nuneaton)

Anderson, F. (Whitehaven)

Battley, J. R.

Braddock, Mrs. E. M. (L'pl, Exch'ge)

Attewell, H. C.

Bechervaise, A. E.

Braddock, T. (Mitcham)

Austin, H. L.

Bellenger, F. J.

Brook, D. (Haifax)

Awbery, S. S.

Benson, G.

Brooks, T. J. (Rothwell)

Ayles, W. H.

Binns, J.

Brown, George (Belper)

Ayrton Gould, Mrs. B.

Blenkinsop, Capt. A.

Brown, T. J. (Ince)

Buchanan, G.

Holman, P.

Porter, G. (Leeds)

Burden, T. W.

Holmes, H. E. (Hemsworth)

Price, M. Philips

Burke, W. A.

House, G.

Randall, H. E.

Byers Lt.-Col. F.

Hudson, J. H. (Ealing, W.)

Ranger, J.

Castle, Mrs. B. A.

Hughes, Emrys (S. Ayr)

Rankin, J.

Champion, A. J.

Hughes, Hector (Aberdeen, N.)

Rees-Williams, D. R.

Chater, D.

Hynd, H. (Hackney, C.)

Reeves, J.

Chetwynd, Capt. G. R.

Irving, W. J.

Reid, T. (Swindon)

Clitherow, Dr. R.

Janner, B.

Richards, R.

Cluse, W. S.

Jeger, G. (Winchester)

Ridealgh, Mrs. M.

Cocks, F. S.

Jeger, Dr. S. W. (St. Pancras, S.E.)

Roberts, Emrys (Merioneth)

Coldrick, W.

John, W.

Roberts, Goronwy (Caernarvonshire)

Collindridge, F.

Jones, D. T. (Hartlepools)

Rogers, G. H. R.

Collins, V. J.

Keenan, W.

Royle, C.

Colman, Miss G. M.

Key, C. W.

Scollan, T.

Comyns, Dr. L.

Kinley, J.

Shackleton, Wing-Cdr. E. A. A.

Corlett, Dr. J.

Kirby, B. V.

Sharp, Lt.-Col. G. M.

Cove, W. G.

Kirkwood, D.

Shawcross, C. N. (Widnes)

Crossman, R. H. S.

Lang, G.

Silverman, S. S. (Nelson)

Daggar, G.

Lavers, S.

Simmons, C. J.

Daines, P.

Lee, F. (Hulme)

Skeffington-Lodge, T. C.

Dalton, Rt. Hon. H.

Lee, Miss J. (Cannock)

Skinnard, F. W.

Davies, Edward (Burslem)

Leslie, J. R.

Smith, Rt. Hon. Sir B. (Rotherhithe)

Davies, Clement (Montgomery)

Levy, B. W.

Smith, S. H. (Hull, S.W.)

Davies, Ernest (Enfield)

Lewis, A. W. J. (Upton)

Smith, T. (Normanton)

Davies, Harold (Leek)

Lewis, J. (Bolton)

Snow, Capt. J. W.

Davies, Haydn (St. Pancras, S.W.)

Lewis, T. (Southampton)

Solley, L. J.

Davies, R. J. (Westhoughton)

Lipson, D. L.

Sorensen, R. W.

Diamond, J.

Logan, D. G.

Sparks, J. A.

Dobbie, W.

Lyne, A. W.

Stamford, W.

Dodds, N. N.

McAdam, W.

Steele, T.

Driberg, T. E. N.

McEntee, V. La T.

Stewart, Capt. Michael (Fulham, E.)

Dumpleton, C. W.

McGhee, H. G.

Stubbs, A. E.

Durbin, E. F. M.

McGovern, J.

Swingler, S.

Edwards, Rt. Hon. Sir C. (Bedwellty)

Mack, J. D.

Symonds, Maj. A. L.

Edwards, John (Blackburn)

Mackay, R. W. G. (Hull, N.W.)

Taylor, R. J. (Morpeth)

Edwards, W. J. (Whitechapel)

McKinlay, A. S.

Thomas, I. O. (Wrekin)

Evans, E. (Lowestoft)

McLeavy, F.

Thomas, George (Cardiff)

Evans, J. (Ogmore)

MacMillan, M. K. (Western Isles)

Thorneycroft, H. (Clayton)

Evans, S. N. (Wednesbury)

Macpherson, T. (Romford)

Thurtle, E.

Ewart, R.

Mann, Mrs. J.

Tiffany, S.

Farthing, W. J.

Manning, Mrs. L. (Epping)

Timmons, J.

Foot, M. M.

Mayhew, C. P.

Titterington, M. F.

Foster, W. (Wigan)

Messer, F.

Tolley, L.

Freeman, Peter (Newport)

Middleton, Mrs. L.

Usborne, Henry

Gallacher, W.

Mikardo, Ian

Vernon, Maj. W. F.

Ganley, Mrs. C. S.

Mitchison, Maj. G. R.

Viant, S. P.

Gibbins, J.

Monslow, W.

Wadsworth, G.

Glanville, J. E. (Consett)

Montague, F.

Walker, G. H.

Goodrich, H. E.

Moody, A. S.

Wallace, H. W. (Walthamstow, E.)

Gordon-Walker, P. C.

Morgan, Dr. H. B.

Warbey, W. N.

Greenwood, Rt. Hon. A. (Wakefield)

Morley, R.

Watkins, T. E.

Greenwood, A. W. J. (Heywood)

Morris, Lt.-Col. H. (Sheffield, C.)

Watson, W. M.

Grenfell, D. R.

Morris, P. (Swansea, W.)

White, H. (Derbyshire, N.E.)

Grey, C. F.

Morrison, Rt. Hon. H. (Lewisham, E.)

Whiteley, Rt. Hon. W.

Griffiths, D. (Rother Valley)

Mort, D. L.

Wilkes, Maj. L.

Griffiths, Capt. W. D. (Moss Side)

Murray, J. D.

Wilkins, W. A.

Gruffydd, Prof. W. J.

Naylor, T. E.

Willey, F. T. (Sunderland)

Gunter, Capt. R. J.

Neal, H. (Claycross)

Willey, O. G. (Cleveland)

Haire, Flt.-Lieut. J. (Wycombe)

Nichol, Mrs. M. E. (Bradford, N.)

Williams, J. L. (Kelvingrove)

Hale, Leslie

Nicholls, H. R. (Stratford)

Williams, W. R. (Heston)

Hall, W. G. (Colne Valley)

Noel-Buxton, Lady

Williamson, T.

Hamilton, Lieut.-Col. R.

Oldfield, W. H.

Wills, Mrs. E. A.

Hannan, W. (Maryhill)

Orbach, M.

Woods, G. S.

Hardy, E. A.

Paling, Will T. (Dewsbury)

Yates, V. F.

Harrison, J.

Parker, J.

Young, Sir R. (Newton)

Hastings, Dr. Somerville

Parkin, Flt.-Lieut. B. T.

Younger, Hon. Kenneth

Henderson, Joseph (Ardwick)

Paton, Mrs. F. (Rushcliffe)

Zilliacus, K.

Hewitson, Capt. M.

Peart, Capt. T. F.

Hicks, G.

Perrins, W.

TELLERS FOR THE NOES:

Hobson, C. R.

Porter, E. (Warrington)

Mr. Pearson and Mr. Bing.

NEW CLAUSE.—(Compensation of officers and servants of the operating company.)

(1) Any officer or servant of the operating company who by virtue of the provisions of this Act or of anything done in pursuance of or in consequence of its provisions, suffers any direct pecuniary loss by reason of the determination of his employment or the diminution of his emoluments shall be paid by the operating company compensation in accordance with a scheme or order made under this Act by the Treasury.

(2) Any officer or servant of the operating company who on or at any time within five years after the appointed day relinquishes office by reason of the provisions of this Act or by reason of his having been required to perform duties which are not analogous to or which are an unreasonable addition to those which he was required to perform immediately before the appointed day shall be deemed to have his employment determined in consequence of this Act and unless the contrary is shown, to have suffered direct pecuniary loss in consequence of this Act by reason of such determination.

(3) Any officer or servant whose employment is determined or whose emoluments are reduced within five years from the appointed day because his services are not required or his duties are diminished (no misconduct being established) shall be deemed unless the contrary is shown to have suffered direct pecuniary loss in consequence of this Act.

(4) The scheme or order made under this Act providing for the payment of such compensation shall incorporate the provisions set out in the Schedule (Provisions as to the determination and payment of compensation to officers) to this Act.

(5) For the purposes of this Section the expression "officer" shall be deemed to include a Director of the operating company.—[ Mr. Lyttelton. ]

Brought up, and read the First time.

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

The object of this Clause is to fulfil that which we, on this side of the Committee, consider to be a necessary duty towards the employees and officers of the company. Our anxiety on this score was expressed by me in the Second Reading Debate, and by the hon. and learned Member for Daventry (Mr. Manningham-Buller) and several other hon. Members. Certain assurances, it is true, were given both by the Chancellor of the Exchequer, in his opening speech, and by the Financial Secretary, when he wound up for the Government. I think it is necessary to look at those assurances, because they were of the most general kind and will not, in any way, in our submission, meet this case as it should be met. The Chancellor said:

I am going to suggest to the Chancellor and the Government that the cases are very analogous. The right hon. Gentleman himself in his Second Reading speech pointed to the fact that Cable and Wireless, which is the operating company, was already a public utility, very largely under Government control, with limited dividends and with restraint as to the sale of its assets and so forth. In no sense of the word could it be described as an ordinary private enterprise company. It has to follow a great many provisions, including those of an Advisory Committee, and it is an instance of public utility under Government control. Therefore, we think it appropriate to use the same kind of words in relation to this public utility company as those which were used in the Act of 1933 regarding the safeguards for the employees of local authorities when absorbed by larger bodies. We on this side of the Committee suggest that it is only common justice to the officers and servants of the company to follow the recommendations of the Select Committee and to protect them by means of a Clause in the Bill. There are one or two comments on that which are necessary and I understand that you, Mr. Beaumont, will permit me to deal with the relevant Schedule as well as with the Clause itself.

5.30 p.m.

On two occasions the right hon. Gentleman said that the Select Committee had recommended that the position should be safeguarded by a Clause in the Bill. As I read the report the Committee did not say anything of the kind. Perhaps the right hon. Gentleman would clear up that point.

If I did say so, it was by inadvertence. The first time I mentioned the subject of the Select Committee was in regard to the Chancellor giving a general assurance that by the provisions of the Bill those employees will be protected by such means as the House might think fit. If I gave any other impression, I apologise. My submission to the Committee now is that this Clause might be the means used, if Members think fit, in order to protect employees. I thank my hon. Friend the Member for Blackburn (Mr. John Edwards) for correcting me, if I gave a wrong impression.

At first sight neither the Clause nor the Schedule appeared to deal with the situation which is undoubtedly causing the most anxiety to the members of the staff and to the officers of the company. As the Committee is aware, the staff and employees of the company have received no war bonus, as such, during the years of the war. For some years past they have got—and I find this in the evidence given before the Select Committee—one-third of the surplus beyond the standard revenue of £1,200,000, which has been divided and given to the staff as bonuses. The result of these allocations of one-third of the surplus has been that the increase on the basic pay or wages to the staff and officers concerned, has been, I think, a minimum of 50 per cent. in every case, and in certain cases the rise has been as high as 65 per cent. The Chancellor's assurance, so to speak, is that the contract—and that again is a slight misnomer because there is no written contract; it is quite common that there should be only verbal agreements between a company and its employees—will be respected and safeguarded. That does not go far enough, because under the Bermuda agreement it is quite unlikely that, for some years at any rate, there will be a surplus over and above the standard revenue. Indeed, it is possible that there will happen what happens in nearly all cases of nationalised industries—a very heavy loss will be incurred and instead of having any surplus it is extremely likely that the company will work at a loss. So what is the good of the Chancellor giving an assurance that the employees will share in the surplus, which every other action of the Government makes it impossible to occur. It is like giving no assurance at all whatever to the employees of the company.

I want to draw the attention of the Committee particularly to one point. The Government have already acknowledged that they have taken such violent and drastic action in consenting to the Bermuda agreement that the company are going to be put very considerably into reverse. The chairman of the company, whom the Chancellor quite wrongly supposes to be guilty of inefficiency—the right hon. Gentleman cannot have it both ways; if he backs the chairman on one occasion he must do so on another—said that the company was going to operate at a substantial loss. The Government at any rate have taken notice of that statement. They have stated that in taking into account compensation to the shareholders, the results of the Bermuda agreement are to be specifically excluded. I find myself in a very funny position, because I am asking a Socialist Government to see that a staff and workers, about whom they are so solicitous in their words, though it is very different when it comes to deeds, should be safeguarded. Here we have a case where the Government say that the actions taken over the Bermuda agreement are to be excluded when we come to discuss the question of the shareholders' compensation. On the question of the staff, however, all we are told is that their contracts will be respected. But what about the extra bonuses which they have received from a surplus which the Chancellor himself admits is not likely to occur in the future?

I go on to consider how the situation should be dealt with in justice to the workers. In the course of the evidence before the Select Committee an extremely personal question was put to one of the witnesses. I think it was the chairman who was asked whether it was reasonable to ask that the Government should underwrite or guarantee the same total pay packet to the members of the staff as they had been receiving during the time when the receipts of the company were swollen by war conditions. I want to make it clear that that is not the contention that I am putting forward now. I do not think it would be fair to ask the Government to say that the staff should receive exactly the same money that they have been receiving during the last three or four years. We must admit that their receipts during the last three or four years may have been abnormal. Therefore, some kind of reasonable accommodation should be reached. It would be most unfair, if having cancelled the benefits of the Bermuda agreement, no other compensation were paid to the staff and employees. The Committee may ask where that is provided in the present Clause or Schedule that we are putting forward. My answer is that in paragraph (2) of the Schedule there is this item: last phrase the word "the" has been omitted before "case." I think that is a misprint.

In the last of these Subsections, we suggest that the Treasury should take into account the loss, diminution or even cancellation of an employee's employment, as a result of the action of the Government, and we rely upon these particular words to see that justice is done. I want again to emphasise that no one on this side of the Committee suggests that the Government should guarantee, out of hand, sums for compensation. These should be received as a result of this agreement. Once the Government deem that the Bermuda agreement should be excluded, in taking into account the interests of the shareholders, I suggest that the agreement should be excluded as far as the staff is concerned. It is going to affect the staff more than the shareholders, because, after all, the shareholders will get out once and for all, whereas the staff will remain to enjoy the blessings of a nationalised industry and the Exchequer will remain to enjoy the losses of a nationalised industry.

The new Clause provides that: to the shareholders and another to the staff.

There is one other point on which I wish to touch. The Committee will have noticed that in Subsection (5) of the new Clause we have used the expression:

I quite understand. I am told that this will clear up the point once and for all, and I would have asked the hon. Member if he were prepared to testify that, in the minds of the Select Committee, these officers were to be directors of the operating company.

I was a Member of the Select Committee and I do not think that that was the intent of the Committee. As a matter of fact, it was suggested that directors should be included in our recommendations and we did not agree with that. We changed it to staff officers and servants of the company.

I have been speaking to the hon. Member for Chesterfield (Mr. Benson) about this matter, and if it will refresh the memory of the hon. Member for Romford (Mr. T. Macpherson) I should say there was a division on this matter, and some argument as to the drafting of the special report. I do not want to go into that, but I can say—and I have the authority of the hon. Member for Chesterfield for saying it—that in the minds of the Committee the word "officer" was intended to cover not only managers and people like that, but directors as well, in accordance with the ordinary meaning of the word.

5.45 p.m.

I find some anxiety in intervening in a discussion between two Members of the Select Committee, but I will repeat what I said, that the hon. Member for Chesterfield said that it was in the mind of the Select Committee to include directors in this particular context. I am not saying what should happen in another context. I am talking about this context. I think it is extremely difficult to say how you can discriminate against directors of a company for the loss of their employment. If you do it you would reach this curious and anomalous position—and I am not selecting this particular analogy out of the blue, but because it has some application to the company we are talking about. If a junior employee an office boy, in one of those companies, works his way up from the bottom until he eventually receives what he thinks to be the accolade for his services, and becomes a director, then, in the opinion of the Treasury bench, he enters into one of the untouchable classes, one of the scheduled classes, and cannot be treated on the same basis as the other employees and staff of the company.

In my own company there are many people who started as apprentices in the works, and who, I fully believe, if they are spared, will be managing directors, or directors, of the company in the next few years. I shall have to give them some peculiar advice. I shall have to say to them, "I detect the finger of the Treasury approaching the electrical equipment industry, and my advice to you is that on no account should you become a director, because if you do you will not be compensated, when the company is taken over, for the loss of your office. You had much better remain a general manager, a consultant, a superintendent, or a chief mechanical engineer, because you will thereby fall outside the scheduled classes which the Socialist Party wish to exclude." I have no personal interest in this matter at all. I shall always be an officer of the company as well as a director, so I am not speaking in order to protect my personal interest. I believe it is only commonsense and justice that if there is loss of employment falling upon a director, whether senior or junior, who is displaced as a result of Government action, compensation should be extended to him. I do not want to labour the point, but a rather curious interjection was made by the hon. Member for Merthyr (Mr. S. O. Davies) during the Debate on the Money Resolution. He had another curious little bit of doctrine to put in front of us. He said:

But the point about directors is only a small part of the whole matter. The main provisions of the Clause relate to the protection to be given to the staff and employees. I am entitled to say that it carries out in one way the wishes and intentions which were expressed by the Select Committee, in their Resolution. I do not see what their Resolution means, unless it is that the protection of the employees should be statutory, should be included in the Bill, and not be subject to the good or bad temper of the Chancellor of the Exchequer, or any of his successors, even if that may seem more remote than some of us would desire at this moment. By having compensation put in statutory form we are protecting the employees from the changes and chances of this mortal and political life. I think it is fair to put the matter in that way, and I hope the Government will, therefore, accept this new Clause.

I am not quite as conversant with the provisions of this Bill as the right hon. Gentleman the Member for Aldershot (Mr. Lyttelton) who, I think, has not, in spite of his superior knowledge, spoken entirely for his own Clause. He rather thought that in transferring this business to the State there would be a financial loss; he suggested that all nationalised industries would be run at a loss, but what about the Post Office?

I was pleased that the Chancellor brought in an Amendment earlier today to deal with pensions on retirement by those employed by the folding companies. My right hon. Friend, on the Second Reading, also gave an undertaking about conditions of employment after the transfer and that has been accepted by the trade unions concerned. Members opposite are objecting to those Associations making contracts for those who are not their members.

I must correct that statement. I say only that the need for statutory protection for the members of the staff of this company is more important because there are many who, owing to the widespread nature of the company's business, are not members of unions. If the hon. Member reads any reflection into that he is wrong. If they are not members of unions, who can fight their battles for them, that is all the more reason why statutory safeguards should be put into the Bill.

I do not object to that argument, but the right hon. Gentleman knows as well as I do that nearly all non-unionists enjoy working conditions that are secured by the trade unions, and the same would apply in this case.

I think the Committee will be at one with me in saying that we want the Government to do the right thing towards employees and staff. There is, however, one difference between a company director and an employee. If the employee is dismissed because of redundancy the whole of his job and income disappear, but if a director who holds similar positions in 10, 15 or 20 other companies loses one of them it does not mean very much to him. I do not think the right hon. Gentleman opposite would disagree with that statement.

If a man receives £100 a year as a director of a company and loses it, then he loses £100 a year.

That is quite inapplicable to this company, where some directors are not directors of other companies.

I hope the Chancellor will look favourably upon the necessity for providing some safeguard for the employees and officers of this company who may lose their employment by the transfer. My right hon. Friend will, I hope, remember, that when we passed the National Insurance Bill the other day the Minister in charge gave a promise that he would put into statutory form, that where he could not take over all the fully employed persons engaged in the health insurance business there would be compensation. In the negotiations which have taken place between the associations covering employees of Cable and Wireless and the Chancellor regarding the conditions of employment the Associations are satisfied with the promises of my right hon. Friend. There is, nevertheless, a great deal in this new Clause entirely apart from the conditions of employment as such. The Clause deals with pensions and retirement and little else.

A very evil principle is suggested in this new Clause. The Chancellor is on good ground when he proposes retirement pensions. I am sure that he will watch the position carefully, and that if anybody is likely to be badly affected by the transfer he will be prepared to do something about it. But if you accept the principle of compensation for redundancy where will it lead? I remember that when parish councils were taken over by local authorities, compensation of £300, £400 or £500 a year was paid. Since 1920, people have drawn those sums while earning a good deal more in other jobs, more than they would ever have earned in the first place. Does the right hon. Gentleman opposite suggest that if a director of this company gets £1,000 a year, and has no other directorship, he finishes there? Will he not take another directorship next day, at another £1,000 per annum?

6.0 p.m.

Is the hon. Member asserting that if an employee of Cable and Wireless is regarded as redundant on transfer to the State, say, at 60 years of age, the State should not compensate that man, particularly since he may not get a job elsewhere at that age?

I say that the Chancellor is making arrangements for retirement pensions; that is an entirely different thing from compensation for redundancy. The principle of compensation introduced in the Local Government Act and mentioned by the hon. Member in connection with insurance, and which was operated in 1920, is an evil principle. It is not a case of retirement pensions or of tiding a man over a particular period between losing one job and finding another. If any of these people are to be redundant and lose their jobs, I hope the Chancellor will do something for them until they obtain other jobs, but compensation for redundancy is something which we should not introduce, and I hope the Chancellor will not do so.

This is a very important and interesting question. I am going to ask the Committee not to accept this Clause but, on the other hand, I am going to repeat, and in several respects to amplify, the assurances I have already given. I will leave the question of the directors for a moment—I will touch on that before I sit down—but with regard to the staff a large number belong to the Association of Scientific Workers and a large number of others belong to the National Union of Distributive and Allied Workers. There may, no doubt, be a number, as the right hon. Gentleman said, who do not belong to either of these bodies, but according to the best information I can obtain those are the two organisations which cater for practically all of those who are organised in trade unions. It is also true, as my hon. Friend said, that in so far as arrangements are made for conditions of service—

I think it is correct to say that the trade union members of the total 12,000 employees are in a minority, so that we are saying nothing about that very large number of men who are not members of trade unions.

I have had correspondence with these two organisations, from which I will quote in a moment. As I was saying, where there is a scheme of remuneration according to grades and classifications of service it is true, as my hon. Friend said, that those who do not belong to the trade union none the less obtain the advantages established by the trade union members as the result of their collective negotiations. There may be one or two special categories of persons working overseas who cannot easily be fitted into the scales that apply to the great majority, but in so far as there is a scheme of scales and grades, it is likely that the majority will have identical conditions with those who are organized.

As I mentioned in the Second Reading Debate, there has been a certain amount of propaganda conducted among the staff by those who were not in favour of nationalisation. This is their right under democratic rule, but I had a letter from the general secretary of the Association of Scientific Workers on 6th May, the germane passage of which read as follows:

Is it not a fact that this union has, at any rate, not more than 1,000 members in Cable and Wireless, and how can they make pronouncements purporting to express the general wish of the employees of this company with so small a representation?

Even a Member of the Select Committee may know less than a member of the staff. One is a Member of a Select Committee for a few fleeting days of adult education whereas one is a member of a staff for long years of service. I was quoting, and, for my part, I attach importance to this letter, which was unsolicited. I did not write to him; he wrote to me.

The right hon. Gentleman has expressed it with exactness. An unsolicited testimonial to His Majesty's Government and their good intentions in this as in other matters. I am glad that that should go on record in the OFFICIAL REPORT. The letter from which I have quoted was written before the Second Reading Debate, in which I made a statement and my hon. Friend the Financial Secretary made a statement on the matter. Following that, on 30th May, the same gentleman, the secretary of the Association of Scientific Workers, wrote to my hon. Friend the Member for West Lewisham (Mr. Skeffington), who takes an interest in these matters. The essential paragraph in that letter reads:

"The members of the Association employed by Cable and Wireless are naturally anxious about their future position, but the assurances given by Mr. Dalton and Mr. Glenvil Hall in the course of the Parliamentary Debate have convinced them that the trade unions will be fully consulted with regard to any changes in their conditions of employment which may be decided."

I have a letter also from the general secretary of the National Union of Distributive and Allied Workers associating that body with the communication that I had received from the other organisation, and in which he said:

"I am directed to say that my executive council support the views expressed in the communication addressed to you by the national organiser of the Association of Scientific Workers on this matter."

This is very interesting, but now that the Chancellor has obtained these two unsolicited testimonials could he inform the Committee how many members of these two organisations are employed by Cable and Wireless? It is a simple question because my right hon. Friend has made the point that a large part of the staff do not belong to the trade unions. How many members do belong and are covered by the testimonials the Chancellor has read out?

I do not know—[HON. MEMBERS: "Oh."]—I am being quite frank about it, and I do not mind, except that I hope that when this undertaking is taken over as a proper public service, larger numbers of the staff will belong to them. I hope that these two organisations will advance in strength and membership, and they certainly will advance in closeness of cooperation with the Government and those who will be responsible for the organisation of this new service, with whom trade union representatives will themselves be closely connected. I have mentioned these two unsolicited communications in order to show that whereas, according to the assurances of the right hon. Gentleman, speaking on behalf of the whole body of those concerned, including the directors, the project has been found unsatisfactory, those who speak for such of their members as belong to these two organisations have found satisfaction.

Let me say a word or two on the merits of the case and the structure. [HON. MEMBERS: "Hear, hear."] I observe that the Opposition do not care for the ray of light—

It was only that the Opposition were becoming slightly upset by these gleams of rather sickening Socialist symposia to which the Chancellor has been referring and were expressing satisfaction that he was now coming to the merits of the case.

If we are to use alliterations, I was interested to hear the agitated and agonised alliterations to which the Opposition have resorted as to the conditions of service now prevailing under the dispensation of this operating company. I understand that the staff are not wholly free from grievances and that there have been certain grievances which have not been remedied under the present proprietors, and the wage structure is peculiar, as the right hon. Gentleman said. I have been told that there has been no increase in the basic wage since 1936—that is 10 years ago, and there has been a war between. On the other hand, there has been a bonus of a profit sharing nature, and I do not myself much like that method. I do not think it is a good type of wage structure, and a good many of my hon. and right hon. Friends, with experience of collective negotiations and bargaining, do not like it either. I do not think it is a good plan to tie up the wages of the worker with the profits that may from time to time be earned by the company. I do not think it is a good structure and I am glad that among the things which we shall be changing is this particular wage structure. There has been no bonus other than this profit sharing bonus, no advance in the basis rate and no cost of living bonus as in other trades and occupations. It would be very wrong for me—at least it would not be wrong but inappropriate and going outside what I wish to do—to lay down the law as to how the structure should be modified. I should guess, however, that the representatives of the trade unions, when they enter into discussion on the matter, would take the view that they would like to have some measure of consolidation and get clear of the profit sharing bonus. [HON. MEMBERS: "Hear, hear.] I see that we all agree about that. They would want to get rid of that and obtain some measure of consolidation as is in operation in other industries, so that there is a proper basic wage which will take account not merely of the prewar basic, but also of changes in the cost of living since then and of any other relevant facts, but which will not be tied up tightly with the profits of the company. The right hon. Gentleman the Member for Aldershot (Mr. Lyttelton) said that he did not propose that there should be any guarantee given by the Government that nobody's wage should be reduced as the result of this. He did not suggest that anybody's total wages, or pay packet, as. I understand it, should remain unaffected.

It is a very small point, but there is a difference between "pay packet" and "wage." I meant the total money received by the individual. I do not think that could be properly guaranteed by the Government. The right hon. Gentleman used the word "wages," which has a different significance. I never suggested for a moment that there should be a reduction in wages, in fact, on the contrary, I said the opposite. I said that the total pay packet in its present form could not be guaranteed by the Government.

I do not want to make unfair scores at all, but to distinguish between wages and the pay packet, not necessarily as distinct from the profit-sharing element—

I think we are on exactly the same point, but I do not want the Chancellor to get off the rails. I said I did not think the Government could guarantee in another form the same amount of money as the present employee was receiving as an amalgamation, so to speak, of basic wage plus a share of the profits. We were not going so far as to say that this should necessarily be photographed.

6.15 p.m.

I would like not to commit myself to that point. The right hon. Gentleman is refusing to commit himself to the possibility of reductions, and I do not want to commit myself to it at all. I do not think it is reasonable at this stage for us to commit ourselves, beyond what I have already said, in connection with the two organisations. I said:

"I am anxious to make a statement, because there has been a bit of propaganda done by those persons who are about to vacate their office on the appointed day."

Then I spoke about the existing contracts of service of the employees and I said:

"I say quite emphatically that the existing contracts of service of the employees will not be disturbed by the change of ownership."—[OFFICIAL REPORT, 21st May, 1946; Vol. 423, c. 209.]

When I said that I meant contracts in the broad sense. I did not mean the thing with the stamp on it. I included verbal contracts and contracts of service other than the collective bargains and negotiations. As I understand it, when a member of a trade union has had a certain wage negotiated for him by those who speak for him, with his employer, that is a contract, although it might not be written down with a stamp on it, and contain a lot of unintelligible rigmarole.

They all get the advantage, whether they are paying for it or get something for nothing. I said that all those contracts and so on would remain unchanged. There would then be a second stage in which the new employer or public authority, whether it be the Post Office, or some board, or the Court of the Bank of England, would enter into discussion with the trade unions representing the staff. If any third union or fourth union claimed to have members in the staff, they would be entitled to be present. I went on to say:

With regard to the directors, I noticed that the right hon. Gentleman explicitly referred to them. It would, in my view, be a very bad precedent if we did what we are being asked to do, and that is only one reason why I hope that the Amendment will either be withdrawn or defeated. We should not lay down that directors, as such, are to be compensated when their concern passes into other hands. When the Bank of England was nationalised none of the directors of the court asked, or received, any compensation at all. That was a very good precedent, and this would be a very bad precedent. In the case of the Bank of England the directors were mostly elderly people who had worked a long time and had sufficient reason, incidentally, to be able to retire without undue hardship. They did retire, and they did not get compensation. They did not ask for it. It did them credit that they did not ask for it.

We shall have other Measures of nationalisation. I could not advise the Committee to include some provision which could be quoted as a precedent when we nationalise the electrical or the gas industries, or any other of the similar undertakings, whose directors would all come along holding out their hands. Let us distinguish between different classes of statutory directors. There are some, like those of the Bank of England, who felt that a new time was coming and that perhaps they had to pass. They went into an honourable retirement. It is conceivable that there may be some of that kind in this industry. There are others who may be invited by the new authorities to continue in helpful activity at a reasonable salary. That may well be. I cannot commit this new authority to it. They may be kept on, in which case they will continue to serve, and no question of compensation will arise. They may be labelled differently. I do not know.

It was perfectly possible for a company, before nationalisation—and this is an important point to which I hope right hon. Gentlemen opposite will pay attention—to call a meeting to terminate a number of the directorships. How often have we not seen a notice that Mr. So-and-So or Lord Somebody "retires by rotation, and, being eligible, offers himself for reelection"? If he is not re-elected, can he claim compensation? If he is defeated by losing the vote, he cannot claim compensation. It is a commonplace of capitalist finance to change directors. They are not changed as often as they ought to be, but change of directors is not a very rare proceeding. They are not entitled to compensation in that case. Why should they then wish to milk the State when their concern is taken over?

We should not like any of the directors of the operating companies to fall upon hard times. I am advised that the directors of the operating company are already directors in fact of the holding company. There is a complete coincidence, the purest coincidence, between the personnel of these two bodies. In that case they will go happily forward as directors of the holding company and they will be well remunerated, with a good deal less to do. Nor is this all. On merit, it has been a good transfer—I am not criticising—to the Marconi Company—

I think it was £50,000. The "Daily Express" may err, but not the "Financial Times." They give £50,000 for directors. They say:

"Sir Edward Wilshaw, the Governor of Cable and Wireless"—

I am quoting from the "Financial Times," a very excellent paper—

"gave details of the sale of the Marconi Wireless Telegraph Company to the English Electric Company, when he presided at the holding company's meeting yesterday."

I will leave out the discussion. It was very interesting but it was not germane to the point. Then there is a cross heading:

"£50,000 for the directors."

It goes on:

"Mr. Hildred Carlisle said that he did not think that the directors should disappear without some recognition. He asked what their annual fees were, and in reply the chairman said that, including the managing director's fee, they were £25,000 a year. Mr. Carlisle thereupon proposed that the directors be paid two years' salary, or £50,000, as compensation for loss of office and this was agreed."

All these matters have been going along very happily for the directors. Some of them are going along in a different capacity with less to do for the same money. Some of them have got this arrangement for their benefit already. Therefore, I am not prepared in this Bill, and in the light of the facts of the case, to accept a broad proposal that the directors as such should be compensated. In this case, it is not justifiable and I shall not be led into creating a precedent for later legislation. Each case can be looked at on the merits. In this instance there is no case at all for compensating the directors as such. I am not making any commitment, but some of these gentlemen may be invited to go on rendering service under the new authority. In the second place they are very well able to care for themselves.

Not being a director of any company, I think I am entitled to ask the right hon. Gentleman, as he has mentioned that the Bank of England directors received no compensation—

—whether we may take it that when the Government come to nationalising other industries he will not say that there was not only no compensation to the Bank of England directors but no compensation for the directors of Cable and Wireless?

Everything will depend upon the circumstances. It will be quite proper to cite this case as an example. We must deal with each case as it arises. The present proposal could not be accepted because it contains a very undesirable provision which would commit us not only to paying these directors but in the future, in a number of cases yet undetermined. I hope, therefore, that it will be clearly understood—and I re- peat it now in slightly different words but with no change of essential meaning—perhaps with greater emphasis—what I have said before. It is desired that in every industry and service which is brought into public ownership the conditions of pay and service shall be fair and satisfactory, and agreed with the representatives of organisations concerned. That is not less our desire in this case than in any other. As soon as the moment arrives of transition from private to public ownership, contact will be made with organisations representing the staff, and full discussion will take place. Every effort will be made to get reasonable agreement, which will include an element of consultation in it, something more permanent and more secure.

That is our intention, and we shall report to the House of Commons from time to time. One of the advantages of nationalised industry is that reports are made from time to time how the industries are going on. Matters can be brought up, explained and discussed, and questions can be put. If things should go wrong, the matter can be brought forward. In the light of my explanation I hope that the Opposition will withdraw the Clause or, if they take it to a Division, that it will be defeated.

We have just listened to the Chancellor's answer, if one can call it an answer, to the very careful new Clause which we put down and which was explained to the Committee in a speech of some length by my right hon. Friend the Member for Aldershot (Mr. Lyttelton). My right hon. Friend took the greatest care in placing facts before the Committee. He showed clearly that he understood the terms of employment of the staff of Cable and Wireless, and he made an admirable attempt to bring their case to the notice of the Committee. He had many grounds for doing so. His most important one was that a large part of the staff of Cable and Wireless do not belong to a trade union. They are scattered all over the world and in certain countries where they work there is not a trade union. It is therefore incumbent upon this House to protect such persons who are without organised help when their interests are affected by legislation.

How did the Chancellor approach the speech made by my right hon. Friend? He quoted an irrelevant letter from a trade union secretary attacking Sir Edward Wilshaw. Apparently that functionary had nothing to do but to read somebody's private correspondence. The Chancellor did not tell us, when he was asked, how many members of Cable and Wireless staff were connected with this union, whose secretary wrote what the Chancellor called an unsolicited testimonial. I think the Committee should remember that we are here dealing with the livelihood of nearly 12,000 men. The Chancellor should approach the matter in a serious way. He had the whole bag of tricks out again today—quotations from the "Financial Times" and so on. I feel that I ought to give the Chancellor some financial return for the advertisement he gives us. We had a number of bland remarks about his own reasonableness; he is going to look into these matters. There was no attempt to consider the livelihood of many thousands of men affected by this Bill. I do not think that—

6.30 p.m.

Is it possible for the right hon. Member to appreciate this fact? If a union, however small its membership may be, make an arrangement with the Minister, with the Chancellor or with the company for proper conditions for the employees at home or abroad, what has he to complain about if those who are not in the union get the benefit of the conditions free? Is it not the case that a union makes conditions for all the employees, and not only its members?

The hon. Member, in his "huntin', fishin' and shootin'" garments, has concentrated so much on thoughts of the moors, that he does not listen to my argument. I said that we felt strongly that we should do everything within our power to protect the interests of the employees of Cable and Wireless, and the Chancellor's only solution for dealing with the Clause, which was worked out with great care and would completely cover the conditions of employment of the staff of Cable and Wireless, is apparently to reject it and talk vaguely about consolidation. What does the Chancellor mean by consolidation? If he had any thoughts for consolidation when he read the Amendment, he could have put them into the Bill. This House is tired of having general assurances from a smooth Chancellor of the Exchequer. No man's living should depend on the Chancellor's rather windy statements, and I say that if the Chancellor has any plan for consolidating the salaries or the wages, and the allowances and the sharing of the profits of the staff of Cable and Wireless, he should put it in writing and include it in the Bill, because we cannot be satisfied by anything less. Here are thousands of people with no protectors except the Members of this House, and the Minister rejects this Clause and talks vaguely about the good will the Government have and hope that they would join the union—I suppose, to increase the political funds. That is not good enough, and it is one of the reasons why we intend to test the issue in the Lobby.

The Chancellor of the Exchequer, for a Socialist, is showing odd form. For instance, he protects the shareholders of Cable and Wireless. He gives them adequate protection. If there is any doubt about the price to be paid for their stock, an arbitrator is appointed. On this occasion the Chancellor is a sort of shareholders' protection association in himself, but what does he do for the staff? Nothing. They are left out in the cold. I really think that for a Socialist Chancellor of the Exchequer to take such a cold view of the ordinary working man who serves Cable and Wireless and at the same time to do everything possible to see that the shareholders get the fullest possible compensation, is what the Chancellor himself calls "strange doctrine."

It would be a very bad infliction on this House if the hon. Comrade and myself sang the "Internationale."

I would call the attention of the Chancellor and the Committee to another important point. For many years the Socialist Party have been abusing boards of directors on the grounds that they do not promote enough working men to the boards. In the case of Cable and Wireless however a number of the executive directors have worked their way right from the bottom to the top. Is not that a merit according to Socialist beliefs? Have we not been told year in year out that boards of directors ought to give greater representation to people who have no opportunities in life save their brains? Here we have the spectacle of the Chancellor jeering at the working directors of Cable and Wireless.

I must say too that the Chancellor, who has a knowledge of these matters, should have made a much stricter difference between the compensation due to the working director and that due to the ordinary director. If I am a director of companies and hold many directorships, it is a matter of really no account for me if I lose one. I agree with the Chancellor that normally there is no possible case for saying that large compensation should be paid to some directors of companies which are being wound up or sold to some other concern. I am now talking of people holding multi-directorships. But in the case of a man who works his way from the bottom to the top of a big business and whose livelihood is jeopardised by Government action as in this case, the Chancellor ought to recognise the difference between a working director and the sort of director that normally decorates a board. The Prime Minister is in the same position as the chairman of many companies, and that is why he has to appoint so many inadequate colleagues to his Government.

We have been told of an interesting distinction between directors who decorate boards and others who do useful work. Where is that in this Clause? This Clause wants compensation for all directors.

The Chancellor must not interpret the Clause in the way that suits him. This Clause gives an opportunity to the Government or to the company for compensating the hardworking working director—

I feel that his interest should be considered. If in future it is to be made impossible for anyone who accepts a working directorship to receive compensation, then we force him to remain a general manager or in some other subordinate place, we are doing harm to the whole structure of industry. Does the Chancellor realise that if he does not accept this Amendment, it will be a clear indication to many able men who may have ambition to join a board not to do so? If they are in that class of working directors they get no compensation. As a general manager they may get very large compensation. The Chancellor should consider carefully whether he wants to establish such a bad system.

These unworthy references made to Sir Edward Wilshaw are due to the fact that Sir Edward is no quisling He deserves a better fate from this House. Here is a man who has been punished for his wise, watchful and faithful stewardship of the affairs of Cable and Wireless. The Chancellor talks in a blissful way of Bank of England directors and the fact that they did not ask for compensation. Of course they did not. Two or three of them were beyond the retiring age. They would have to go in any event and could get no compensation. They were relatively rich and cannot be compared with the working directors of Cable and Wireless. We have had some very strange definitions today from the Chancellor, and I think he will live to regret some of the things he has said about companies and their management, but if this question of compensation must be raised, let us consider for one moment what happens in other ways of life. There is a member of the present Government who applied for and got a large sum of money by way of compensation when he gave up his trade union secretaryship because of amalgamation. If one rule is just for a Member of the Government, it is also just for a company director.

I am a director of a company, though I shall never presume to say that I have decorated the board. It was very noticeable that the Chancellor never attempted to differentiate between different types and classes of directors. If he means to do so and if he wishes to differentiate between the managing director—usually a member of the staff who has worked his way up, has an intimate knowledge of every single ramification of the business and has his place on the board owing to his detailed knowledge of the affairs of the company—and the other type of director who performs a different but equally valuable function in many cases, this is the opportunity for him to say so. In my view, on the basis of certain experience, the director brought into a company for his general knowledge, gained possibly in public service or in working with other companies, makes a considerable contribution but not exactly the same type of contribution as it is not based on work for years in the service of the company. I hope that instead of attempting to ride off, as the Chancellor did with a general diatribe—a cheap one, cheaper than the money rate after the tampering and tinkering recently—the Chancellor should take this opportunity of declaring what his policy is on compensation for directors. I do not think the Chancellor of the Exchequer can be such an assiduous reader of the "Financial Times" as he would wish us to believe—

Then the Chancellor can only read certain columns showing the changes in the stocks in which he is particularly interested. If his reading were more extended he would see that the remarks he made about public companies conducting their general meetings and reports to shareholders in a hole and corner fashion would be completely refuted, because that admirable journal devotes its space to telling everybody exactly what happens in the affairs of those companies at their annual general meeting. Every company has to have an annual general meeting, and I think we are able to see wry clearly from those parts of the paper which the Chancellor does not read, how they do it. Maybe when we come to implement the findings of the Cohen Commission, we may be able to understand more about Government accounts, but I think the board of directors of the Socialist Government Unlimited, who occupy the Front Bench, should be a little careful—it is unlimited because the loss to the shareholders is unlimited, as they will learn—in attacking directors. They should be a little careful in what they say. I hope the Chancellor or one of his colleagues will take the opportunity which he has now, of stating clearly if they are going to differentiate between the managing directors and the other directors.

A completely unsatisfactory assurance has once more been given to the Committee on the question of the bonus so far as the employees are concerned. The Chancellor said that we should be satisfied with an assurance that he will enter into negotiations with the responsible unions in connection with this business. Do the employees of the Post Office, which is a comparable business, believe that they are perfectly satisfied as a consequence of their negotiations with His Majesty's Government? Is it not true to say that there are large numbers of people employed in the Cable and Wireless operating company who, with the incidence of this bonus, are in fact earning more money for a similar job than is the case in the Post Office? Is it not obvious that the Government, with the best of good will, will run into some trouble if they try to fix a rate of remuneration for members and employees of Cable and Wireless which compares in relation to the work done in a similar capacity in the Post Office? That emphasises the necessity for some more concrete assurance on behalf of these men than we have obtained hitherto from either the Financial Secretary or the Chancellor. These men are perfectly satisfied with the arrangement they get whereby they receive a bonus upon their basic earnings, and are entitled to receive an assurance of some kind that their earnings will not be materially reduced as a consequence of the transfer to public ownership.

6.45 p.m.

What a remarkable thing it is that we have to stand here asking a Socialist Chancellor to give a concrete assurance that the earnings of men will not be affected adversely when an industry is nationalised, and what a more remarkable thing it is that we cannot get that assurance.

May I interrupt the hon. Gentleman? Prior to the war, when there was an amalgamation of private companies, as a result of which the employees either lost their jobs or had a reduction in their wages, did the companies concern themselves about compensation, or did they throw the men on to the rubbish heap?

The hon. Gentleman is falling into a grievous error if he imagines that he can compare what are the inexorable results of business fluctuations with the arbitrary interference of His Majesty's Government. If the Government take action which adversely affects the employment of an individual, he has a moral right to have that loss made good. That is what we ask for in this Clause.

I turn now from the employees to the consideration of directors. The conception of justice held by hon. Members opposite is justice for one class only, and the material difference between the philosophy which they hold and we hold at this stage is that we believe that justice should apply to all sections of the community. [An HON. MEMBER: "Tell us another fairy tale."] May I say that the Chancellor today is making the riding hard? He is building up a reputation as the friend of the stockbroker and the supreme liberator of mousetraps. Today he is sitting on the Front Treasury Bench but at the next election he may get a first class seat in the tumbril. Therefore, I want him to have due regard for the interests of these men because there are, as he says, two classes of directors in Cable and Wireless, the Chairman and the two managing directors, who receive no directors' fees at all. They have been concerned very largely in building up this business, and men who have spent their lives in building up a business and who are removed from their position by an arbitrary act of the Government are entitled to some compensation.

I do not know their annual salary, but when a company goes into liquidation or, as a consequence of amalgamation, directors may lose their position, that is the normal flow of business which a man who indulges in business expects to find, but here is created an entirely different situation. The loss of livelihood to these men is not the result of the normal operation of business fluctuation, it is the result of an arbitrary act on the part of the present Government, and I say that they are entitled as a consequence to claim compensation. I feel sure that the Chancellor, if he looks at this question again, will realise that there is justice in the claim for compensation for some of these directors, and I hope he will apply his attention to it again and see if he can give some assurance.

Could the hon. Gentleman inform me how many men have risen from labourers to directors?

I do not know how many such men there are, but I should think they run into thousands and thousands, and to my mind it is a very desirable thing that such things do happen—

The discussion on this new Clause has concentrated perhaps too much on the question of whether or not company directors should be compensated for loss of office, a proposition which arouses all the party instincts of hon. Members opposite.

The term "director" arouses your party instincts just as much, but you know that as well as anyone else.

I do not know the point of that interjection; I doubt if it had any point at all. I am coming on to make this point, to which I hope the hon. and gallant Gentleman will perhaps listen before interrupting again. In the past the House of Commons has been concerned when it comes to an Act of Parliament abolishing anyone's employment, and we took very great care in 1933 to draw up a code, which, it is clear, the hon. and gallant Gentleman does not like. It was a detailed code under the Local Government Act seeking to ensure that no local government employees should suffer financial loss by the amalgamation of two local authorities or the destruction of one. That detailed code was inserted into an Act of Parliament, and we should be careful to see that a code dealing with employees who may lose office in consequence of this Measure should also be inserted in this Bill.

Let me go back a little into history, because it is important. On the Second Reading of this Bill the Chancellor gave his assurance, an assurance which is worth examination and one which he repeated today. It was this:

What happened after that assurance, the assurance in the letters to which he has referred? It was dealt with in the evidence given before the Select Committee and after that assurance had been given, that Committee, on which hon. Members opposite were in the majority, put in a special report that adequate protection of officers and servants of Cable and Wireless, Limited, whose position might be prejudiced by the provisions of the Bill should be given by such means as the House thinks fit. Here is a Clause seeking to do it. First of all, under Subsection (1) it seeks to give compensation for any direct pecuniary loss suffered in consequence of the Act or the determination of his employment. Subsection (2) seeks to give protection if he relinquishes office by reason of the Act or if he has extra duties thrust upon him. There is nothing to deal with that possibility in the Chancellor's assurance, nothing at all—

Does not the hon. and learned Gentleman realise that this proposition of compensation is a very evil proposition, and that what he actually wants is that there should be some means, through national insurance, of giving full wages until new employment has been provided?

The hon. Gentleman has made that statement before, and while he may think it is an evil principle to compensate a man who is thrown out of employment by the act of the State—

—I do not, and it is interesting now to find that the Communist Party is in favour of any man, in whatever walk of life, perhaps an operator working at a cable station somewhere, losing his job because that station is no longer required and getting no compensation after his service.

All this Clause seeks to provide is that he gets compensation for the loss he has suffered, and I am indeed surprised that the Chancellor has not endeavoured to meet that case and has not made an attempt to protect the rights of the individual who is likely to be affected by this Measure.

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

The Committee divided.

The Tellers having come to the Table

Major Milner, owing to a mistake, the Tellers in the "Aye" Lobby left before the doors were closed. The votes then were 123. Two Members subsequently came through, and the corrected numbers are:

Ayes, 125; Noes, 268.

Division No. 229.]

AYES.

[6.56 p.m.

Agnew, Cmdr. P. G.

Hollis, M. C.

Osborne, C.

Assheton, Rt. Hon. R.

Hope, Lord J.

Peto, Brig. C. H. M.

Baldwin, A. E.

Hudson, Rt. Hon. R. S. (Southport)

Pickthorn, K.

Barlow, Sir J.

Hurd, A.

Poole, O. B. S. (Oswestry)

Beechman, N. A.

Hutchison, Col. J. R. (Glasgow, C.)

Raikes, H. V.

Bennett, Sir P.

Jarvis, Sir J.

Ramsay, Maj. S.

Boles, Lt.-Col. D. C. (Wells)

Jennings, R.

Robertson, Sir D. (Streatham)

Bower, N.

Joynson-Hicks, Lt.-Cdr. Hon. L. W.

Robinson, Wing-Comdr. Roland

Boyd-Carpenter, J. A.

Keeling, E. H.

Ropner, Col. L.

Bracken, Rt. Hon. Brendan

Kingsmill, Lt.-Col. W. H.

Ross, Sir R.

Braithwaite, Lt.-Comdr. J. G.

Lambert, Hon. G.

Sanderson, Sir F.

Buchan-Hepburn, P. G. T.

Langford-Holt, J.

Savory, Prof. D. L.

Bullock, Capt. M.

Legge-Bourke, Maj. E. A. H.

Shephard, S. (Newark)

Butcher, H. W.

Linstead, H. N.

Shepherd, W. S. (Bucklow)

Butler, Rt. Hon. R.A. (S'ffr'n W'ld'n)

Lipson, D. L.

Snadden, W. M.

Carson, E.

Lloyd, Maj. Guy (Renfrew, E.)

Stanley, Rt. Hon. O.

Challen, C.

Lucas-Tooth, Sir H.

Strauss, H. G. (English Universities)

Clifton-Brown, Lt.-Col. G.

Lyttelton, Rt. Hon. O.

Stuart, Rt. Hon. J. (Moray)

Cooper-Key, E. M.

MacAndrew, Col. Sir C.

Studholme, H. G.

Crookshank, Capt. Rt. Hon. H. F. C.

McCallum, Maj. D.

Sutcliffe, H.

Crosthwaite-Eyre, Col. O. E.

Macdonald, Capt. Sir P. (I. of Wight)

Taylor, Vice-Adm. E. A. (P'ddt'n, S.)

Crowder, Capt. J. F. E.

Mackeson, Lt.-Col. H. R.

Teeling, William

Davidson, Viscountess

McKie, J. H. (Galloway)

Thomas, J. P. L. (Hereford)

De la Bère, R.

Maclay, Hon. J. S.

Thornton-Kemsley, C. N.

Digby, Maj. S. W.

Maclean, Brig. F. H. R. (Lancaster)

Thorp, Lt.-Col. R. A. F.

Dodds-Parker, A. D.

Macpherson, Maj. N. (Dumfries)

Touche, G. C.

Donner, Sqn.-Ldr. P. W.

Maitland, Comdr. J. W.

Turton, R. H.

Dower, Lt.-Col. A. V. G. (Penrith)

Manningham-Buller, R. E.

Vane, W. M. T.

Drayson, Capt. G. B.

Marlowe, A. A. H.

Wakefield, Sir W. W.

Dugdale, Maj. Sir T. (Richmond)

Marples, A. E.

Walker-Smith, D.

Duthie, W. S.

Marsden, Capt. A.

Ward, Hon. G. R.

Eden, Rt. Hon. A.

Marshall, D. (Bodmin)

Wheatley, Colonel M. J.

Fletcher, W. (Bury)

Maude, J. C.

White, Sir D. (Fareham)

Fraser, Maj. H. C. P. (Stone)

Medlicott, F.

White, J. B. (Canterbury)

Fraser, Sir I. (Lonsdale)

Mellor, Sir J.

Williams, Gerald (Tonbridge)

Galbraith, Cmdr. T. D.

Molson, A. H. E.

Willoughby de Eresby, Lord

Glossop, C. W. H.

Morris-Jones, Sir H.

Winterton, Rt. Hon. Earl

Gridley, Sir A.

Morrison, Maj. J. G. (Salisbury)

York, C.

Grimston, R. V.

Morrison, Rt. Hn. W. S. (Cirencester)

Young, Sir A. S. L. (Partick)

Hannon, Sir P. (Moseley)

Mott-Radclyffe, Maj. C. E.

Hare, Lieut.-Col. Hon. J. H. (W'db'ge)

Neven-Spence, Sir B.

TELLERS FOR THE AYES:

Harvey, Air-Comdre. A. V.

Nutting, Anthony

Mr. Drewe and Commander

Head, Brig. A. H.

Orr-Ewing, I. L.

Agnew.

NOES.

Adams, Richard (Balham)

Ayles, W. H.

Battley, J. R.

Allen, A. C. (Bosworth)

Ayrton Gould, Mrs. B.

Bechervaise, A. E.

Allen, Scholefield (Crewe)

Bacon, Miss A.

Bellenger, F. J.

Anderson, F. (Whitehaven)

Baird, Capt. J.

Benson, G.

Attewell, H. C.

Balfour, A.

Bevan, Rt. Hon. A. (Ebbw Vale)

Austin, H. L.

Barnes, Rt. Hon. A. J.

Bing, G. H. C.

Awbery, S. S.

Barton, C.

Binns, J.

Blackburn, A. R.

Hardy, E. A.

Price, M. Philips

Blenkinsop, Capt. A.

Harrison, J.

Pritt, D. N.

Boardman, H.

Hastings, Dr. Somerville

Pursey, Cmdr. H.

Bottomley, A. G.

Haworth, J.

Randall, H. E.

Bowden, Flg.-Offr. H. W.

Hobson, C. R.

Ranger, J.

Bowen, R.

Holman, P.

Rankin, J.

Bowles, F. G. (Nuneaton)

Holmes, H. E. (Hemsworth)

Rees-Williams, D. R.

Braddock, Mrs. E. M. (L'pl, Exch'ge)

House, G.

Reeves, J.

Brook, D. (Haifax)

Hudson, J. H. (Ealing, W.)

Reid, T. (Swindon)

Brooks, T. J. (Rothwell)

Hughes, Emrys (S. Ayr)

Rhodes, H.

Brown, George (Belper)

Hughes, Hector (Aberdeen, N.)

Richards, R.

Brown, T. J. (Ince)

Hynd, H. (Hackney, C.)

Ridealgh, Mrs. M.

Bruce, Maj. D. W. T.

Irving, W. J.

Robens, A.

Buchanan, G.

Janner, B.

Roberts, Emrys (Merioneth)

Burke, W. A.

Jeger, G. (Winchester)

Roberts, Goronwy (Caernarvonshire)

Byers Lt.-Col. F.

Jeger, Dr. S. W. (St Pancras, S.E.)

Rogers, G. H. R.

Callaghan, James

John, W.

Royle, C.

Castle, Mrs. B. A.

Jones, D. T. (Hartlepools)

Scollan, T.

Champion, A. J.

Jones, J. H. (Bolton)

Segal, Dr. S.

Chater, D.

Jones, P. Asterley (Hitchin)

Shackleton, Wing-Cdr. E. A. A.

Chetwynd, Capt. G. R.

Keenan, W.

Sharp, Lt.-Col. G. M.

Clitherow, Dr. R.

Kenyon, C.

Shawcross, C. N. (Widnes)

Cluse, W. S.

Kinghorn, Sqn.-Ldr. E.

Silkin, Rt. Hon. L.

Cobb, F. A.

Kinley, J.

Silverman, S. S. (Nelson)

Cocks, F. S.

Kirby, B. V.

Skeffington, A. M.

Coldrick, W.

Kirkwood, D.

Skinnard, F. W.

Collick, P.

Lang, G.

Smith, Capt. C. (Colchester)

Collindridge, F.

Lavers, S.

Smith, S. H. (Hull, S.W.)

Collins, V. J.

Lee, F. (Hulme)

Smith, T. (Normanton)

Colman, Miss G. M.

Leslie, J. R.

Snow, Capt. J. W.

Comyns, Dr. L.

Lewis, J. (Bolton)

Solley, L. J.

Corlett, Dr. J.

Lewis, T. (Southampton)

Sorensen, R. W.

Corvedale, Viscount

Lindgren, G. S.

Stamford, W.

Cove, W. G.

Logan, D. G.

Steele, T.

Daggar, G.

Lyne, A. W.

Stubbs, A. E.

Daines, P.

McAdam, W.

Swingler, S.

Dalton, Rt. Hon. H.

McAllister, G.

Symonds, Maj. A. L.

Davies, Edward (Burslem)

McEntee, V. La T.

Taylor, R. J. (Morpeth)

Davies, Clement (Montgomery)

McGhee, H. G.

Thomas, Ivor (Keighley)

Davies, Ernest (Enfield)

McGovern, J.

Thomas, I. O. (Wrekin)

Davies, Harold (Leek)

Mack, J. D.

Thomas, John R. (Dover)

Davies, Haydn (St. Pancras, S.W.)

McKinlay, A. S.

Thomas, George (Cardiff)

Davies, R. J. (Westhoughton)

Maclean, N. (Govan)

Thorneycroft, H. (Clayton)

Diamond, J.

McLeavy, F.

Thurtle, E.

Dobbie, W.

MacMillan, M. K. (Western Isles)

Tiffany, S.

Dodds, N. N.

McNeil, H.

Timmons, J.

Donovan, T.

Macpherson, T. (Romford)

Titterington, M. F.

Driberg, T. E. N.

Mann, Mrs. J.

Tolley, L.

Dugdale, J. (W. Bromwich)

Manning, Mrs. L. (Epping)

Tomlinson, Rt. Hon. G.

Dumpleton, C. W.

Mayhew, C. P.

Turner-Samuels, M.

Durbin, E. F. M.

Messer, F.

Ungoed-Thomas, L.

Ede, Rt. Hon. J. C.

Mikardo, Ian

Usborne, Henry

Edwards, Rt. Hon. Sir C. (Bedwellty)

Mitchison, Maj. G. R.

Vernon, Maj. W. F.

Edwards, John (Blackburn)

Monslow, W.

Viant, S. P.

Edwards, N. (Caerphilly)

Montague, F.

Wadsworth, G.

Edwards, W. J. (Whitechapel)

Moody, A. S.

Walker, G. H.

Evans, E. (Lowestoft)

Morgan, Dr. H. B.

Wallace, G. D. (Chislehurst)

Evans, J. (Ogmore)

Morris, Lt.-Col. H. (Sheffield, C.)

Wallace, H. W. (Walthamstow, E.)

Evans, S. N. (Wednesbury)

Morris, P. (Swansea, W.)

Warbey, W. N.

Ewart, R.

Mort, D. L.

Watkins, T. E.

Farthing, W. J.

Moyle, A.

Watson, W. M.

Fletcher, E. G. M. (Islington, E.)

Murray, J. D.

Weitzman, D.

Follick, M.

Naylor, T. E.

Whiteley, Rt. Hon. W.

Foot, M. M.

Neal, H. (Claycross)

Wigg, Col. G. E.

Foster, W. (Wigan)

Nichol, Mrs. M. E. (Bradford, N.)

Wilcock, Group-Capt. C. A. B.

Freeman, Peter (Newport)

Nicholls, H. R. (Stratford)

Wilkes, Maj. L.

Gallacher, W.

Noel-Baker, Rt. Hon. P. J. (Derby)

Wilkins, W. A.

Ganley, Mrs. C. S.

Noel-Buxton, Lady

Willey, F. T. (Sunderland)

Gibbins, J.

Oldfield, W. H.

Willey, O. G. (Cleveland)

Glanville, J. E. (Consett)

Oliver, G. H.

Williams, J. L. (Kelvingrove)

Greenwood, A. W. J. (Heywood)

Orbach, M.

Williams, W. R. (Heston)

Grenfell, D. R.

Paling, Rt. Hon. Wilfred (Wentworth)

Williamson, T.

Grey, C. F.

Palmer, A. M. F.

Wills, Mrs. E. A.

Griffiths, D. (Rother Valley)

Pargiter, G. A.

Wilson, J. H.

Griffiths, Capt. W. D. (Moss Side)

Parkin, Flt.-Lieut. B. T.

Woods, G. S.

Gruffydd, Prof. W. J.

Paton, Mrs. F. (Rushcliffe)

Yates, V. F.

Gunter, Capt. R. J.

Pearson, A.

Young, Sir R. (Newton)

Haire, Flt.-Lieut. J. (Wycombe)

Peart, Capt. T. F.

Younger, Hon. Kenneth

Hale, Leslie

Perrins, W.

Zilliacus, K.

Hall, W. G. (Colne Valley)

Poole, Major Cecil (Lichfield)

Hamilton, Lieut.-Col. R.

Porter, E. (Warrington)

TELLERS FOR THE NOES:

Hannan, W. (Maryhill)

Porter, G. (Leeds)

Mr. Joseph Henderson and

Captain Michael Stuart.

I will instruct the Clerk to make the necessary entry in the Journal.

NEW CLAUSE.—(Re-transfer of shares.)

(1) If within three years from the passing of this Act the Governments of the Dominion of Canada, the Commonwealth of Australia, the Dominion of New Zealand, the Union of South Africa and of the Dominion of Southern Rhodesia and the Governor-General of India in Council have not acquired the shares of the companies within their territories operating overseas telecommunication services and a Commonwealth Telecommunications Board has not been established, then each of the companies registered on the appointed day as the owners of the shares in the operating company may, upon notice to the Treasury given within three months from the expiry of the three years, require the Treasury to transfer or secure the transfer to such company of such a number of shares in the operating company as bears the same proportion to the then issued share capital of the operating company as the shares transferred by such company under this Act bears to the issued share capital of the operating company on the appointed day.

(2) Any company requiring the Treasury so to transfer or secure the transfer of shares in the operating company shall pay to the Treasury in respect of such shares such sum as may be agreed between the company and the Treasury or in default of agreement as may be determined on arbitration.

(3) In such arbitration there shall be determined the amount which the operating company's undertaking might be expected to realise if sold in the open market on the day when the said request is made to the Treasury as a going concern by a willing seller to a willing buyer on the basis of:

( a ) the net maintainable revenue; and

( b ) the number of years purchase to be applied thereto.

(4) The amount ascertained in accordance with Subsection (3) of this Section shall be taken as the aggregate value of the issued share capital of the operating company, and the amount to be paid by each company shall be the proper proportion of that value, the said proportion being determined by the number of shares to be transferred to the company.—[ Mr. Manningham-Buller. ]

Brought up, and read the First time.

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

I will wait until I can have the attention of the right hon. Gentleman.

It really is rather unusual, on a serious Bill of this sort, for the Chancellor to pay so little attention, and I hope that in future he will pay a little more.

This Clause raises an important principle, but before I deal with the particular terms of the Clause I wish to re- mind the Committee of what has been said about this Measure. First, the Chancellor has described it as a Socialist Measure, but he has not as yet sought to justify it upon its merits. His only argument has been that the Dominions are agreed that they want it. On the Second Reading, he said:

I would put this point to him: It is not unknown for his party to change their mind; it is not unknown for his party—for any party—to give a pledge a year or so ago, and not to keep it. It is not unknown for a party to change its policy, even within a short period of a year. Though I agree that the Chancellor may be somewhat sensitive on these points, I feel that he will at least appreciate that what his party can do may also be done by other parties elsewhere throughout the Empire. Not only may parties change their views and their policies, but Governments also change, although the right hon. Gentleman will not be ready to recognise that possibility at the present moment.

The defect of this Bill, as I see it, is that it makes no provision for a possible change of view with regard to the proposals contained in the White Paper taking place in any one of the Dominions or in India. The Bill appears to be based upon the assumption that all will always be for the best in a Socialist world, or, if it is not, it can be made to appear so by casting responsibility on entirely external events. I ask the Chancellor to direct his mind to this point and to answer it: What is to be the consequence with regard to this company if the Dominions, or any one of them, change their mind? One ought to consider what the possibilities may then be. If this Bill goes through in its present form there will be a nationalised industry here, on the basis that it is nationalised only because the Dominions want it. Then it may be found, on my assumption, that one or other of the Dominions does not want it. What is to happen then?

The industry is nationalised here, and the other part of the arrangement is not carried out overseas, because on reconsideration they may come to the conclusion, and probably will, that this is an extremely bad scheme. This Clause is a reasonable Clause. It provides that if, within three years of the passing of this Measure, the Dominions and India have not carried out their part of the arrangement—as I say, it may be that on second thoughts they will think it best not to, and will be very glad to change it—then within three months of the expiry of that three years, any one of the companies which are now parting compulsorily with shares in Cable and Wireless to the Government, shall have the right, if they so desire, to call upon the Government to transfer back to them shares to the same proportion of the share capital as they handed over to the Government, on terms assessed in precisely the same fashion as the terms on which they were acquired.

7.15 p.m.

If this Clause is resisted it would appear to me that that can be done on the assumption, which is possibly the easiest ground, that in no circumstances will there be a new Government in any one of the Dominions with a different view upon this matter, that in no circumstances will there be a change of Government or party view upon this matter, and that this Clause is not necessary. Or its inclusion can be resisted on the ground—quite a different ground to that put forward by the Chancellor on Second Reading—that nationalisation of this industry is, in itself, a good thing. That argument has never been put forward, and if this Clause is resisted on that basis, then this gives the proper opportunity for debating that issue, which so far has not been debated at all.

If I may quote the Lord President of the Council, he said some time ago, using a word which at the time struck me as odd, that the "nationalisers" have to prove their case. It cannot be said here that the nationalisers have proved their case that there would be public advantage by nationalisation. It was made abundantly clear, on behalf of the Government, as also in the Report from the Select Committee, and from the evidence heard by that Select Committee, that there was not the slightest allegation of inefficiency on the part of Cable and Wireless, either in relation to research, management or development. Therefore, I am on strong ground in contending that if the argument in opposition to this Clause is based upon the contention that nationalisation will be beneficial to this industry, that argument should not prevail. I repeat that it has not been put forward so far with any clarity, and that the only issue, the only argument, which the Chancellor has brought forward repeatedly, has been that the Dominions wanted it. I do not know, my researches have not gone back sufficiently far to find out, whether the Chancellor amused himself on the playing fields at Eton, or whether he was a "wet bob". If I might use this expression, in this week of Henley, if he resists this Clause, as he resisted an earlier one, he is obviously indicating that of all the crew none rowed so fast as he.

As the hon. and learned Member for Daventry (Mr. Manningham-Buller) has indicated, this Amendment is rather like the one which was moved by the right hon. Gentleman the Member for Aldershot (Mr. Lyttelton) to Clause 6. This is an attempt to write into the Bill, in a slightly more complicated and unworkable form, the same idea which the right hon. Gentleman and his friends tried to put into Clause 6.

I am sorry to interrupt the hon. Gentleman, but I did, as I hoped, in regard to the earlier Amendment, and this Clause, make very clear—apparently not to the hon. Gentleman—that they were entirely different. The first was designed to prevent disorder arising owing to parts of the industry being nationalised, and other parts not. This Clause is something quite different. It seeks to provide that if within three years the necessary action has not been taken there should be reversion to private ownership. They really are not the same thing at all.

I was going partly on what the right hon. Gentleman himself said when he moved his first Amendment, because there was then some short discussion as to whether the two should be taken together, and he indicated that some of the arguments he might have used on that particular Amendment he would like to reserve for this Clause. However, it is a small point and I do not press it. Shortly, that Amendment tried to insist that the Bill should not have effect until all the Dominions, with ourselves, had passed the necessary legislation to implement the results of the Telecommunications Conference. This Clause, from another direction, tries to achieve the same object by assuming that all or some of the Dominions—it is not clear what is meant—may hold things up if, within the first three years, they have not given effect to the agreement come to in London and which gave rise to this Bill. Another reason why this Clause cannot be accepted is that it talks about Southern Rhodesia and New Zealand acquiring the shares of the companies within their areas. It apparently is unknown to the movers of this Clause that there is no such company either in Rhodesia or in New Zealand. In New Zealand the Government themselves own the operating company.

Would the hon. Gentleman allow me for one moment to remind him that when my hon. Friends drew this Clause they perfectly understood that point, but they also wanted to deal with the Telecommunications Council for the Empire, which has not hitherto been supported either by New Zealand or Southern Rhodesia?

In the agreement reached it was decided by the Dominions, Southern Rhodesia, India and ourselves that this board should be set up and that each Dominion, where legislation was necessary, should pass the necessary legislation to implement the agreement. In spite of what the hon. and learned Member for Daventry has said, that is still the situation, and in our view will continue to be the situation until the matter reaches its final shape.

Would the hon. Gentleman say that any one of the Dominions has introduced any legislation such as has been introduced in this House?

Yes, India. [An HON. MEMBER: "Is it one of the Dominions?"] With some of the Dominions legislation is not necessary. In each Dominion—

Is the hon. and learned Gentleman casting a reflection on the good faith of the Dominions? If so, let him get up and say so.

I accept the invitation of the hon. Gentleman to get up to tell him that I am not casting any reflections on any of the Dominions, but I think one of the Dominions may perhaps consider this matter again, and continue it more carefully than the hon. Gentleman apparently has done. If that Dominion does so, it might not be so anxious to proceed with it.

That quite definitely is casting a reflection on a Dominion, because the assumption behind what the hon. and learned Gentleman has said is that in spite of the fact that a Dominion—which he has not named, and I should like him to name it, if he will—has put its signature to an agreement with ourselves, the other Dominions and India it may have second thoughts and may intend, at some future time, to go back on that agreement. If that is not what the hon. and learned Gentleman means, I shall be glad if he will correct me, but if it is what he means he is casting a reflection on a sister Dominion, and I for one think he should not do it and that he should withdraw. I invite him now to get up in his place and withdraw.

The hon. Gentleman invites me to get up, but I am afraid that what he says shows again, and not for the first time this afternoon, his complete failure to appreciate any of the arguments which have been adduced in support of the Clause.

Well, Major Milner, you can take a horse to the water but you cannot make him drink, and if the opportunity to do the decent thing is not taken by the hon. and learned Gentleman, I certainly cannot make him take it. He said that the consequence to this Company if any Dominion changed its mind would be as far as he could see disastrous, and he also said the Chancellor of the Exchequer had said that nationalisation of Cable and Wireless was only being undertaken now because the Dominions wanted it. The Chancellor did not say that. I know what the Chancellor said; what he said was that the Dominions desired this. The Dominions now desire it unanimously because of the results of the conference held in London which came to a certain definite conclusion: to set up an inter-Dominion Telecommunications Board, in order to make cable and wireless communications within the Empire perhaps not exactly State owned but certainly not in private hands. It is true that the Dominions wanted it and the Chancellor of the Exchequer was quite right when he indicated that that was so.

Would the Financial Secretary explain to us those very ambiguous and difficult words, "not exactly State owned but not in private hands"? Would he go into them? They are very peculiar words.

I do not take the point which the right hon. Gentleman is trying to make. [HON. MEMBERS: "Go on."] The hon. and learned Member for Daventry said, and I hope I am quoting him correctly, that we were only nationalising Cable and Wireless, Limited, because the Dominions wanted it. It is true that the Dominions want it, and so do we. We also want to nationalise it because, even if the Dominions did not want it, it would be very difficult to implement the Bermuda agreement in the present temper of the directors of Cable and Wireless, Limited. [HON. MEMBERS: "Oh."] That was said both by the Chancellor of the Exchequer and by myself in the Second Reading Debate, and I also, I think, said it upstairs, when I gave evidence before the Select Committee.

For every reason, therefore, it is essential that these shares should be transferred to the State, and we ask the Committee to reject this Clause. It is completely unworkable. How on earth could we give an option to the various companies now concerned to take back at a certain valuation, then to be fixed, at the end of three years, their own percentage of the shares? I do not know. Possibly if this happened, some of the shares might still be left in the hands of the State, and what the State could do with them it would be difficult to conceive. There would arise a condition of affairs which frankly might lead to chaos. Therefore for this and other reasons we ask the Committee to reject the Amendment.

The Financial Secretary has just told us one of the reasons why we want to nationalise this concern. He says it would be difficult, in view of the existing mentality of the directors of Cable and Wireless, to cause them to bring about the Bermuda Agreement, but why is that? Because the Bermuda Agreement involves the company in substantial losses and because it involves this country in substantial losses of overseas currency, which we can ill afford. It is very natural that a company guided by commercial motives and directed by men of ability should object to the revenue of this country being thrown away as it will be by the Bermuda Agreement. Therefore, it is very right that the company's directors should object to the implementation of the Bermuda Agreement.

7.30 p.m.

But it is not on that I wish to speak particularly. It is on the question that the issue is being forced down the throats of hon. Members on this side of the Committee on the ground of its Imperial value. The Chancellor of the Exchequer appears in many guises, sometimes as a Robin Hood robbing the rich to give to the poor, and sometimes in the guise of an apostle of Empire. Indeed, when he came down for the Second Reading, I felt one might paraphrase a remark made by my right hon. Friend the Member for Woodford (Mr. Churchill) and say we were having, on the occasion of this Bill dealing with Cables and Wireless, Socialism by the Imperial pint.

I think that even the Imperial pint, in Socialist hands, wants careful watching.

We have very good grounds for believing that this façade of unity which has been erected by the Financial Secretary this afternoon, and on previous occasions by others, is not so real as they would have us believe. I quote from the evidence which the Financial Secretary gave before the Select Committee when he was asked about the agreement on this question of nationalisation. The counsel for the company said: form this association. It is, on the other hand, the consequence of a certain amount of pressure being brought to bear, perhaps by one Dominion and certainly by His Majesty's Government. So all of us who have put down this new Clause on the Order Paper have done so in case there is a reversal of the decision in some country of the Empire.

It is not unreasonable that that should happen. Elections will probably take place in Dominion countries between now and the implementation of legislation. As hon. Members opposite know, lots of things can happen at elections. If, for example, there were an election in this country between the time we signed this Agreement and the time of its implementation, it is conceivable that a different Government would be in power, taking a different viewpoint; and, therefore, it is right that we should have this new Clause, which will enable us to avoid the dangers and disadvantages of having one Dominion disagree with their ideas.

I would call the attention of the Committee to the fact that the total revenue which is derived from Dominion sources by Cable and Wireless is 7.9, a very small amount of the whole revenue; and, therefore, it is reasonable that we should have a safeguard to see that this country does not lose money which is of great value to it. We ought to think, too, of the aspect of foreign concessions. If a Dominion disagrees, or a Dominion backs out, are we to be committed still to this policy of nationalisation, which, in the opinion of the chairman of this company and of the directors and of many other people, is harmful to our national interests? We know already that one country which was negotiating a foreign concession with Cable and Wireless has broken off negotiations since it heard of the announcement by the Chancellor of the Exchequer. There is a possibility, therefore, that we shall be involved in losses of foreign concessions as a result of this Bill. Therefore, if it is not the unanimous desire of the Dominions, or if certain Dominions retract their original ideas, it is right and proper that some machinery should exist in this Bill, so that we may undo what has been done. Therefore, I hope the Chancellor of the Exchequer will think again, and accept this new Clause.

I was hoping that we should have a little explanation from the Chan- cellor of the Exchequer before we part from this Clause. I feel it my duty to intervene in order that we may tempt the right hon. Gentleman to get on to his feet again. I must begin by saying a word about the Financial Secretary's observations. Naturalists declare that the most savage animal in the world is a sheep that runs amok.

I am bound to say that this afternoon the Financial Secretary, who is always so kind and courteous, when he gave such a severe lecture to my hon. and learned Friend the Member for Daventry (Mr. Manningham-Buller) was, I think, indulging in what one would call an excess of fervour, and that he did not think my hon. and learned Friend was in any way an enemy to the British Empire or wanted to do it any harm. What my hon. and learned Friend was attempting to do was to recommend this new Clause—and he attempted it so well that I hope he convinced everyone not absolutely given over to party bias—and to persuade the Chancellor of the Exchequer that this is a prudent new Clause. He said that before dispersing the assets and the machinery and the management of Cable and Wire less we should know whether the Governments of the Dominions have agreed to disperse their opposite numbers of Cable and Wireless. That is a point of some importance, with which the Financial Secretary to the Treasury did not deal. He dealt with a number of irrelevant points, but he did not give us the slightest information of the action taken by the Dominion Governments since this agreement was made. It is certainly true, as the hon. and learned Gentleman the Member for Daventry said, that no accusation has been made from either side of the Committee against the competence of Cable and Wireless. On the contrary, the Chancellor of the Exchequer sent his counsel—a very well fee'd gentleman—to the Select Committee and he paid the most glowing tribute to the management of Cable and Wireless. He said that in research, and, indeed, in all directions they were beyond criticism—

The right hon. Gentleman is waxing very eloquent. Would he refer us to the wonderful passages in the Select Committee's Report, so that we may all read them?

We are not discussing the general question of the management of the company. The right hon. Gentleman has had considerable latitude in making his point. I must ask him to return to the new Clause.

I assure you, Major Milner, that I shall not go into the point raised by the Financial Secretary, but I must confess that I was surprised to hear that the Financial Secretary has not read the Report of the Select Committee. I was saying that in view of that tribute, and in view of the general uneasiness felt in various parts of the country and in the House of Commons, we should ask the Chancellor of the Exchequer not to be in such a hurry to rush this Bill through.

I am sorry, but we are not discussing the general considerations affecting the company. We are arguing whether a certain proposal, as to the re-transfer of shares, is desirable or not.

Of course, I bow to your Ruling, Major Milner. But may I point out, in justification of the thread of the argument I was attempting to weave, that we are dealing with a three-year period, and that I was addressing myself to this point: that we have a right to suggest to the Government that they should not be precipitate at the present moment. That is my point. But I would ask the Financial Secretary, who is a mine of information when he likes to be, if the Government of any Dominion—I leave out New Zealand, because we know it is not necessary—whether the Australian Government, the Canadian Government, the South African Government have introduced Bills to acquire the companies within their territories operating telecommunications services. Can the Financial Secretary answer that question?

If the right hon. Gentleman would like the answer in a few words, the answer so far as Canada is concerned is that legislation is not necessary. One of the great quarrels of Members on the other side was that Australia has forced this on the rest of us, and so Australia obviously wants it. In New Zealand the business is already operated by the Government. India has given notice that it means to exercise its option to take over.

I do not know whether legislation is necessary or not in South Africa. The right hon. Gentleman can assume that South Africa will not be behind if legislation is necessary.

I am not going to assume anything. I am the least assumptive person alive. I want facts, and I am not getting them. The Financial Secretary says that the Australian Government are very keen on this Bill, but have the Australian Government initiated any legislation at Canberra? Silence apparently gives consent.

I am not going to be drawn continually to my feet by the right hon. Gentleman.

That is a very courteous method of expressing ignorance. Let me ask another question. Have the South African Government announced their intention to introduce any legislation? The Chancellor of the Exchequer may be able to tell us whether any of the Dominions have taken any real steps to fulfil this agreement. Of course, the Financial Secretary comes along with his great standby. He has mentioned many times that India, that splendid democratic Government of India, have leapt into the fray and have done something to implement—that is a horrid word—this agreement. It seems to me to be a peculiar thing that the Government will tell us that India has acted, but will give us no information whatever about any of the Dominions.

Let us get it plain and fair. Is the right hon. Gentleman assuming if none of the Dominions have yet taken action that they do not intend to take action? If that is not what he has in mind, then what has he in mind?

I was asking the Financial Secretary to address himself to this point. The object of this proposal is to synchronise British action with action taken in Dominion Parliaments. Furthermore, let me say that I take some little interest in Dominion affairs, and that I know there is a very heavy legislative programme in the Parliaments of New Zealand and Australia. Surely we should know whether they can pass this legislation in the life of the present Parliaments of Australia and New Zealand, because both will soon end, and both countries are about to have a General Election. The House of Commons should not be in a hurry to dissipate the assets of this great British company merely on the assumption that the Parliaments of the Empire are going to support the Chancellor's contentions that they really desire the nationalisation of Cable and Wireless. Let me point out to the Financial Secretary, who apparently has not got the same profound respect for legislative institutions, that the only people who can speak for the Dominions are their duly elected representatives, and that this Bill has not been brought before them, or any Bill like it. One wonders, being hard-headed people, whether they will adopt schemes modelled on this foolish Bill. I have protested about the Financial Secretary's jeers at my right hon. Friend's remarks about the Empire. Let the Committee agree to a moderate measure of Dominion status for Britain by waiting on the decisions of the Parliaments of the Empire. We have dissipated most of our foreign assets, and we are busy in the process of getting rid of the rest. I say that it is very wrong to perorate about the Empire wanting this Bill, without waiting until the Parliaments of the Empire have had an opportunity to show whether they really believe in it or not.

7.45 p.m.

I had not the remotest intention of intervening in this Debate, but when I heard the arguments submitted by the Financial Secretary I found it impossible to keep silent. He has expressed his full confidence that all the contemplated parties to this arrangement are going to implement this. If he is absolutely confident of that, what objection can there be to this Clause? If the Financial Secretary or the Chancellor were as familiar as some of us on this side are of business contracts where properties are being disposed of, they would know perfectly well that a common clause in an agreement runs something like this: "In the event of the provisions of such and such a clause not being carried out, then the properties shall revert." That is a common clause to have in an industrial agreement. I should like to make one further point in response to the so-called arguments of the Financial Secretary. Has he never heard of other countries who have nationalised certain industries—for example, American shipping in the last war—after having incurred disastrous losses, having had to sell the assets back to private enterprise? The average intelligence of Members, wherever they sit, is such that we ought to be given sounder arguments than we have received from the Financial Secretary in refusing to accept a perfectly businesslike method.

I want to say a word about the foolish arguments of the hon. Member for Stockport (Sir A. Gridley). He says that the Minister expresses the utmost confidence that the Dominions will accept this. He not only expresses the utmost confidence, but he might have added that he wants the Dominions to accept it. And so we get this. The hon. Member says that the Minister expressed the utmost confidence that the Dominions will accept this Bill, and the Minister wants them to accept this Bill, and therefore there is no reason why we should not put in this Clause.

I have an idea that the Chancellor of the Exchequer and the Financial Secretary have entirely misconstrued the object of putting forward this Clause. This is throwing a lifebelt to Members on the other side who may not see the danger to which they are swimming with some rapidity. It is a Clause designed to make it possible in the event—and it has been known to happen in Governments, in parties and among individuals—of something which they are so certain about today not being so certain tomorrow. In the words of the technicians of Cable and Wireless, this is an "unscrambling" Clause. I think that this is a very useful one as suggested. Surely, the high confidence which pushes them to refuse this lifebelt today cannot be very well justified if, in due course, they, or any of the other Governments concerned, are, to use the eloquent phrase of the Chancellor of the Exchequer, "pipped by the public." I have no doubt that if they reject this Clause, their action will be followed with regret, when out of kindness of heart their opponents have provided for them a Clause which, when conditions change again—and we have seen them change since last July very considerably—is going to give them an opportunity to come out in an orderly fashion. It is extremely unwise, when puffed up with power and pride, to scornfully reject an offer which should be received with consideration.

The object of putting down this Clause was to show that there are possibilities that some of the Dominions may have second thoughts on this matter, perhaps after the Elections. If the assurances with which the Financial Secretary has been so liberal this afternoon, have any substance, he has nothing to fear from the Clause. The truth of the matter is that he is not so sure. He is doubtful whether the Dominions are going to carry this through. He it is who is casting reflections, not we, and I think that the hollow nature of the Government's argument is borne out by their attitude to this new Clause. The whole burden of their song on Second Reading was that there was pressure from the Dominions, which they could not resist, to place Cable and Wireless under national control, and the Chancellor of the Exchequer made his usual attack on the top of the Despatch Box when he said that the Dominion Governments were not willing to continue under the terrible tyranny of Sir Edward Wilshaw. If the Government are so confident that the Dominion Governments are in favour of the thing, why resist this Clause? It will have no operation at all if even half of what the Financial Secretary says is going to happen, does happen. The thing then becomes entirely innocuous; but if after the General Elections wiser counsels prevail, and it is desirable to "unscramble"

this thing, then this Clause will enable the Government to get out of this embarrassing obligation. If what the Financial Secretary says is correct, the Clause is innocuous, and if what he says is incorrect, it will give him a useful safeguard. We have received no arguments of any relevance to the point, and I therefore propose to ask my hon. Friends on this side to divide the Committee upon this matter.

The new Clause moved by the Opposition raises a highly entertaining question. If no party to a bargain takes action, what happens? If they all refuse to act, nothing happens. To follow the argument to its logical conclusion, I can conceive of Clauses to effect similar legislation being put forward in each of the Houses of Parliament of the other contracting countries. If you had a repetition of the Clause in all the Legislatures it would merely mean that each would be waiting for the others to act. I think obviously, as contracting parties to a bargain, the Government should indicate, as they are indicating by the provisions of the Bill, that they intend to honour that agreement and fearlessly to give a lead.

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

The Committee divided: Ayes, 109; Noes, 288.

Division 230.]

AYES.

[7.55 p.m.

Assheton, Rt. Hon. R.

Glossop, C. W. H.

Morris-Jones, Sir H.

Baldwin, A. E.

Gridley, Sir A.

Morrison, Maj. J. G. (Salisbury)

Beechman, N. A.

Grimston, R. V.

Morrison, Rt. Hn. W. S. (Cirencester)

Bennett, Sir P.

Hannon, Sir P. (Moseley)

Mott-Radclyffe, Maj. C. E.

Boles, Lt.-Col. D. C. (Wells)

Hare, Lieut.-Col. Hon. J. H. (W'db'ge)

Neven-Spence, Sir B.

Bower, N.

Harvey, Air-Comdre. A. V.

Orr-Ewing, I. L.

Boyd-Carpenter, J. A.

Hinchingbrooke, Viscount

Osborne, C.

Bracken, Rt. Hon. Brendan

Hollis, M. C.

Peto, Brig. C. H. M.

Braithwaite, Lt.-Comdr. J. G.

Hope, Lord J.

Ponsonby, Col. C. E.

Buchan-Hepburn, P. G. T.

Hurd, A.

Poole, O. B. S. (Oswestry)

Bullock, Capt. M.

Hutchison, Col. J. R. (Glasgow, C.)

Raikes, H. V.

Butcher, H. W.

Jennings, R.

Ramsay, Maj. S.

Butler, Rt. Hon. R. A. (S'ffr'n W'ld'n)

Joynson-Hicks, Lt.-Cdr. Hon. L. W.

Robertson, Sir D. (Streatham)

Carson, E.

Keeling, E. H.

Robinson, Wing-Comdr Roland

Challen, C.

Kingsmill, Lt.-Col. W. H.

Ropner, Col. L.

Clifton-Brown, Lt.-Col. G.

Langford-Holt, J.

Ross, Sir R.

Conant, Maj. R. J. E.

Legge-Bourke, Maj. E. A. H.

Sanderson, Sir F.

Cooper-Key, E. M.

Lloyd, Maj. Guy (Renfrew, E.)

Savory, Prof. D. L.

Crosthwaite-Eyre, Col. O. E.

Lucas-Tooth, Sir H.

Shephard, S. (Newark)

Crowder, Capt. J. F. E.

Lyttelton, Rt. Hon. O.

Shepherd, W. S. (Bucklow)

Davidson, Viscountess

McCallum, Maj. D.

Snadden, W. M.

De la Bère, R.

Macdonald, Capt. Sir P. (I. of Wight)

Spearman, A. C. M.

Digby, Maj. S. W.

Mackeson, Lt.-Col. H. R.

Strauss, H. G. (English Universities)

Dodds-Parker, A. D.

Maclay, Hon. J. S.

Stuart, Rt. Hon. J. (Moray)

Donner, Sqn.-Ldr. P. W.

Maclean, Brig. F. H. R. (Lancaster)

Sutcliffe, H.

Drayson, Capt. G. B.

Macmillan, Rt. Hon. Harold (Bromley)

Taylor, C. S. (Eastbourne)

Drewe, C.

Macpherson, Maj. N. (Dumfries)

Thomas, J. P. L. (Hereford)

Dugdale, Maj. Sir T. (Richmond)

Maitland, Comdr. J. W.

Thornton-Kemsley, C. N.

Duthie, W. S.

Manningham-Buller, R. E.

Thorp, Lt.-Col. R. A. F.

Fletcher, W. (Bury)

Marples, A. E.

Touche, G. C.

Foster, J. G. (Northwich)

Marshall, D. (Bodmin)

Turton, R. H.

Fraser, Maj. H. C. P. (Stone)

Medlicott, F.

Vane, W. M. T.

Galbraith, Cmdr. T. D.

Mellor, Sir J.

Wakefield, Sir W. W.

Walker-Smith, D.

Williams, Gerald (Tonbridge)

Ward, Hon. G. R.

Willoughby de Eresby, Lord

TELLERS FOR THE AYES:

Wheatley, Colonel M. J.

Winterton, Rt. Hon. Earl

Commander Agnew and

White, Sir D. (Fareham)

York, C.

Mr. Studholme.

White, J. B. (Canterbury)

Young, Sir A. S. L. (Partick)

NOES.

Adams, Richard (Balham)

Edwards, N. (Caerphilly)

Mack, J. D.

Allen, A. C. (Bosworth)

Edwards, W. J. (Whitechapel)

Mackay, R. W. G. (Hull, N.W.)

Allen, Scholefield (Crewe)

Evans, E. (Lowestoft)

McKinlay, A. S.

Anderson, F. (Whitehaven)

Evans, J. (Ogmore)

Maclean, N. (Govan)

Attewell, H. C.

Evans, S. N. (Wednesbury)

McLeavy, F.

Austin, H. L.

Ewart, R.

MacMillan, M. K. (Western Isles)

Awbery, S. S.

Farthing, W. J.

McNeil, H.

Ayles, W. H.

Follick, M.

Macpherson, T. (Romford)

Ayrton Gould, Mrs. B.

Foot, M. M.

Mann, Mrs. J.

Bacon, Miss A.

Forman, J. C.

Manning, C. (Camberwell, N.)

Baird, Capt. J.

Foster, W. (Wigan)

Manning, Mrs. L. (Epping)

Balfour, A.

Fraser, T. (Hamilton)

Marquand, H. A.

Barnes, Rt. Hon. A. J.

Freeman, Maj. J. (Watford)

Marshall, F. (Brightside)

Barton, C.

Freeman, Peter (Newport)

Mayhew, C. P.

Battley, J. R.

Gallacher, W.

Messer, F.

Bechervaise, A. E.

Ganley, Mrs. C. S.

Middleton, Mrs. L.

Belcher, J. W.

Gibbins, J.

Mikardo, Ian

Bellenger, F. J.

Gibson, C. W.

Millington, Wing-Comdr. E. R.

Benson, G.

Glanville, J. E. (Consett)

Mitchison, Maj. G. R.

Berry, H.

Greenwood, Rt. Hon. A. (Wakefield)

Monslow, W.

Bevan, Rt. Hon. A. (Ebbw Vale)

Greenwood, A. W. J. (Heywood)

Moody, A. S.

Bing, G. H. C.

Grey, C. F.

Morgan, Dr. H. B.

Binns, J.

Griffiths, D. (Rother Valley)

Morley, R.

Blackburn, A. R.

Griffiths, Capt. W. D. (Moss Side)

Morris, Lt.-Col. H. (Sheffield, C.)

Blenkinsop, Capt. A.

Gruffydd, Prof. W. J.

Morris, P. (Swansea, W.)

Boardman, H.

Gunter, Capt. R. J.

Mort, D. L.

Bottomley, A. G.

Haire, Flt.-Lieut. J. (Wycombe)

Moyle, A.

Bowden, Flg.-Offr. H. W.

Hale, Leslie

Murray, J. D.

Bowen, R.

Hall, W. G. (Colne Valley)

Naylor, T. E.

Bowles, F. G. (Nuneaton)

Hamilton, Lieut.-Col. R.

Neal, H. (Claycross)

Braddock, Mrs. E. M. (L'pl, Exch'ge)

Hannan, W. (Maryhill)

Nichol, Mrs. M. E. (Bradford, N.)

Brook, D. (Haifax)

Hardy, E. A.

Noel-Baker, Capt. F. E. (Brentford)

Brooks, T. J. (Rothwell)

Harrison, J.

Noel-Baker, Rt. Hon. P. J. (Derby)

Brown, George (Belper)

Hastings, Dr. Somerville

Noel-Buxton, Lady

Brown, T. J. (Ince)

Haworth, J.

Oldfield, W. H.

Bruce, Maj. D. W. T.

Henderson, A. (Kingswinford)

Oliver, G. H.

Buchanan, G.

Henderson, Joseph (Ardwick)

Orbach, M.

Burden, T. W.

Hewitson, Capt. M.

Paget, R. T.

Burke, W. A.

Hicks, G.

Paling, Rt. Hon. Wilfred (Wentworth)

Byers Lt.-Col. F.

Hobson, C. R.

Palmer, A. M. F.

Callaghan, James

Holman, P.

Pargiter, G. A.

Castle, Mrs. B. A.

Holmes, H. E. (Hemsworth)

Parkin, Flt.-Lieut. B. T.

Champion, A. J.

House, G.

Paton, Mrs. F. (Rushcliffe)

Chater, D.

Hudson, J. H. (Ealing, W.)

Pearson, A.

Chetwynd, Capt. G. R.

Hughes, Emrys (S. Ayr)

Peart, Capt. T. F.

Clitherow, Dr. R.

Hughes, Hector (Aberdeen, N.)

Perrins, W.

Cluse, W. S.

Hynd, H. (Hackney, C.)

Poole, Major Cecil (Lichfield)

Cobb, F. A.

Irving, W. J.

Porter, E. (Warrington)

Cocks, F. S.

Isaacs, Rt. Hon. G. A.

Porter, G. (Leeds)

Collick, P.

Janner, B.

Price, M. Philips

Collins, V. J.

Jeger, G. (Winchester)

Pritt, D. N.

Colman, Miss G. M.

Jeger, Dr. S. W. (St. Pancras, S.E.)

Proctor, W. T.

Comyns, Dr. L.

John, W.

Pursey, Cmdr. H.

Cooper, Wing-Comdr. G.

Jones, D. T. (Hartlepools)

Randall, H. E.

Corbet, Mrs. F. K. (Camb'well, N.W.)

Jones, J. H. (Bolton)

Ranger, J.

Corlett, Dr. J.

Jones, P. Asterley (Hitchin)

Rankin, J.

Corvedale, Viscount

Keenan, W.

Rees-Williams, D. R.

Cove, W. G.

Kenyon, C.

Reeves, J.

Daggar, G.

Kinghorn, Sqn.-Ldr. E.

Reid, T. (Swindon)

Daines, P.

Kinley, J.

Rhodes, H.

Dalton, Rt. Hon. H.

Kirby, B. V.

Richards, R.

Davies, Edward (Burslem)

Kirkwood, D.

Ridealgh, Mrs. M.

Davies, Clement (Montgomery)

Lang, G.

Robens, A.

Davies, Ernest (Enfield)

Lavers, S.

Roberts, Emrys (Merioneth)

Davies, Harold (Leek)

Lawson, Rt. Hon. J. J.

Roberts, Goronwy (Caernarvonshire)

Davies, Haydn (St. Pancras, S.W.)

Lee, F. (Hulme)

Royle, C.

de Freitas, Geoffrey

Lee, Miss J. (Cannock)

Sargood, R.

Diamond, J.

Leslie, J. R.

Scollan, T.

Dobbie, W.

Lewis, J. (Bolton)

Segal, Dr. S.

Dodds, N. N.

Lewis, T. (Southampton)

Shackleton, Wing-Cdr. E. A. A.

Donovan, T.

Lindgren, G. S.

Sharp, Lt.-Col. G. M.

Driberg, T. E. N.

Logan, D. G.

Shawcross, C. N. (Widnes)

Dugdale, J. (W. Bromwich)

Lyne, A. W.

Silkin, Rt. Hon. L.

Dumpleton, C. W.

McAdam, W.

Simmons, C. J.

Durbin, E. F. M.

McAllister, G.

Skeffington, A. M.

Ede, Rt. Hon. J. C.

McEntee, V. La T.

Skinnard, F. W.

Edwards, Rt. Hon. Sir C. (Bedwellty)

McGhee, H. G.

Smith, Capt. C. (Colchester)

Edwards, John (Blackburn)

McGovern, J.

Smith, S. H. (Hull, S.W.)

Smith, T. (Normanton)

Tolley, L.

Wilkins, W. A.

Snow, Capt. J. W.

Tomlinson, Rt. Hon. G.

Willey, F. T. (Sunderland)

Solley, L. J.

Turner-Samuels, M.

Willey, O. G. (Cleveland)

Stamford, W.

Ungoed-Thomas, L.

Williams, J. L. (Kelvingrove)

Steele, T.

Usborne, Henry

Williams, Rt. Hon. T. (Don Valley)

Stewart, Capt. Michael (Fulham, E.)

Vernon, Maj. W. F.

Williams, W. R. (Heston)

Stubbs, A. E.

Viant, S. P.

Williamson, T.

Swingler, S.

Wadsworth, G.

Wills, Mrs. E. A.

Symonds, Maj. A. L.

Walker, G. H.

Wilson, J. H.

Taylor, R. J. (Morpeth)

Wallace, G. D. (Chislehurst)

Wise, Major F. J.

Thomas, Ivor (Keighley)

Wallace, H. W. (Walthamstow, E.)

Woods, G. S.

Thomas, I. O. (Wrekin)

Warbey, W. N.

Yates, V. F.

Thomas, John R. (Dover)

Watkins, T. E.

Young, Sir R. (Newton)

Thomas, George (Cardiff)

Watson, W. M.

Younger, Hon. Kenneth

Thorneycroft, H. (Clayton)

Weitzman, D.

Zilliacus, K.

Thurtle, E.

Whiteley, Rt. Hon. W.

Tiffany, S.

Wigg, Col. G. E.

TELLERS FOR THE NOES

Timmons, J.

Wilcock, Group-Capt. C. A. B.

Mr. Collindridge and

Titterington, M. F.

Wilkes, Maj. L.

Mr. Coldrlck.

First and Second Schedules agreed to.

THIRD SCHEDULE (Particulars of Agreement Partially Abrogated.)

Amendment made: In page 6, line 27, leave out "Holdings," and insert "Holding."—[ Mr. Glenvil Hall. ]

Schedule, as amended, agreed to.

Bill reported, with Amendments; as amended, to be considered upon Monday next, and to be printed. [Bill 140.]

SUPPLY

Considered in Committee.

[Mr. HUBERT BEAUMONT in the Chair]

ARMY EXCESS, 1944

Motion made, and Question proposed,

"That a sum, not exceeding £10, be granted to His Majesty, to make good an excess on the grants for Army Services for the year ended on the 31st day of March 1945.

SCHEDULE.

No. of Vote

Army Services, 1944, Votes.

Deficits.

Surpluses.

Excesses of Actual over estimated gross Expenditure

Deficiencies of actual as compared with estimated Receipts

Surpluses of actual as compared with estimated Receipts

£

s.

d.

£

s.

d.

£

s.

d.

1

Pay, &c., of the Army

444,361,644

18

9

15,854,549

12

6

2

Territorial Armv and Reserve Forces

5,555,061

5

10

165,454

16

6

3

Medical services

7,373,355

10

3

242,804

3

9

4

Educational Establishments

1,568,599

6

3

25,869

19

6

5

Quartering and Movements

113,859,381

12

0

1,923,210

4

5

6

Supplies, Road Transport and Remounts

299,948,045

5

2

13,130,585

16

10

7

Clothing

3,712,027

7

7

34,779

15

1

8

General Stores

42,051,819

4

4

357,245

14

3

9

Warlike Stores

3,790,526

19

3

957,338

2

8

10

Works, Buildings and Lands

98,823,843

19

5

5,010,749

2

6

11

Miscellaneous Effective Services

45,990,974

7

0

3,756,538

1

11

12

War Office

3,741,887

13

0

1,508

3

2

13

Half-pay, Retired Pay and other Non-effective Charges for Officers

3,550,855

6

7

596,395

13

6

14

Pensions and other Non-effective Charges for Warrant Officers, Non-commissioned Officers, men and others

2,000,194

6

9

708,583

10

6

15

Civil Superannuation, Compensation and Gratuities

457,890

14

10

248

0

1

Balances Irrecoverable and Claims Abandoned

892,877

7

0

1,077,678,985

4

0

15,854,549

12

6

26,911,311

4

8

Net Surplus of Receipts

£11,056,761 12 2

£

s.

d.

Excess over estimated Gross Expenditure

1,077,678,985

4

0

Net amount issued out of Vote of Credit

1,066,622,213

11

10

Net Deficit

11,056,771

12

2

Surplus receipts available for Excess Vote

11,056,761

12

2

Excess Vote

£10

0

0"

Will the Financial Secretary to the War Office be good enough to give us a word of explanation of this Vote?

8.8 p.m.

This is merely a book-keeping technicality. During the financial year 1944–45 as the Committee will remember, the Estimates were not presented in the form in which they are now

NAVY AND AIR EXPENDITURE, 1944

Considered in Committee.

[Mr. HUBERT BEAUMONT in the Chair]

"I. Whereas it appears by the Navy Services Appropriation Account for the year ended the 31st day of March 1945 that, as shown in the Schedule hereunto appended, the total surplus and deficits on Navy Votes for that year are as follows:

Total Surpluses, namely:

£

s.

d.

£

s.

d.

Surpluses of actual as compared with estimated receipts (Votes 2–6 and 8–16)

38,389,741

3

9

Total Deficits, namely:

Deficiencies of actual as compared with estimated receipts (Votes 1 and 7)

39,719,007

17

9

Excesses of actual over estimated gross expenditure

773,250,879

6

5

812,969,887

4

2

Net Deficit (charged to the Vote of Credit)

£774,580,146

0

5

And whereas the Lords Commissioners of His Majesty's Treasury have temporarily authorised the application of surplus receipts realised under Votes 2 to 6 and 8 to 16 towards making good the deficit in receipts under Votes 1 and 7.

presented and the consequence was that only token Votes were moved. Part of those token Votes consisted of appropriations-in-aid. This Vote of £10 is to enable a book-keeping entry to be made in respect of surplus receipts to be set off against expenditure of the Army during 1944–45.

Question put, and agreed to.

Resolution to be reported upon Monday next; Committee to sit again Tomorrow.

SCHEDULE

No. of Vote

Navy Services, 1944–45, Votes.

Deficits.

Surpluses.

Excesses of actual over estimated gross Expenditure

Deficiencies of actual as compared with estimated Receipts

Surpluses of actual as compared with estimated Receipts

£

s.

d.

£

s.

d.

£

s.

d.

1

Wages, &c, of Officers and Men of the Royal Navy and Royal Marines, and of certain other Personnel serving with the Fleet

115,709,224

17

7

39,718,997

17

9

2

Victualling and Clothing for the Navy

82,404,677

16

10

12,492,844

0

3

3

Medical Establishments and Services

3,821,871

14

3

150,375

12

3

4

Civilians employed on Fleet Services

4,674,760

2

11

21,943

2

8

5

Educational Services

222,051

10

8

83,110

15

9

6

Scientific Services

4,274,255

12

2

60,203

3

10

7

Royal Naval Reserves

56,316

3

4

10

0

0

8

Shipbuilding, Repairs, Maintenance, &c.:

Section I—Personnel

36,139,939

15

10

463,367

10

4

Section II—Matériel

142,976,050

17

3

8,901,065

13

5

Section III—Contract Work

204,087,744

16

10

3,101,095

14

11

9

Naval Armaments

60,372,036

1

4

3,813,112

17

10

10

Works, Buildings and Repairs at Home and Abroad

25,004,885

3

5

780,070

8

11

11

Miscellaneous Effective Services

46,080,619

19

11

8,033,324

19

11

12

Admiralty Office

7,579,215

17

4

7,401

0

7

13

Non-effective Services (Naval and Marine)—Officers

1,934,621

12

11

787

5

3

14

Non-effective Services (Naval and Marine)—Men

5,413,861

1

9

9,590

16

6

15

Civil Superannuation, Allowances and Gratuities

1,686,165

9

6

4,579

8

0

16

Merchant Shipbuilding

30,716,044

12

11

466,868

13

4

Balances Irrecoverable and Claims Abandoned

96,535

19

8

773,250,879

6

5

39,719,007

17

9

Total Surpluses

Total Deficits £812,969,887 4 2

£38,389,741

3

9

Net Deficit met from Vote of Credit £774,580,146 0 5"

Resolved: "That the application of such surpluses be sanctioned."—[ Mr. Glenvil Hall. ]

"II. Whereas it appears by the Air Services Appropriation Account for the year ended the 31st day of March 1945 that, as shown in the Schedule hereunto appended, the total surpluses and deficits on Air Votes for that year are as follows:

Total Surpluses, namely:

£

s.

d.

£

s.

d.

Surpluses of actual as compared with estimated receipts (Votes 2–11)

153,639,790

1

0

Total Deficits, namely:

Deficiencies of actual as compared with estimated receipts (Vote 1)

189,333,580

12

11

Excesses of actual over estimated gross expenditure

448,905,038

6

10

638,238,618

19

9

Net Deficit (charged to the Vote of Credit)

£ 484,598,828

18

9

And whereas the Lords Commissioners of His Majesty's Treasury have temporarily authorised the application of surplus receipts realised under Votes 2 to 11 towards making good the deficit in receipts under Vote 1.

SCHEDULE

No of Vote

Air Services, 1944–45, Votes.

Deficits.

Surpluses.

Excesses of actual over estimated gross Expenditure

Deficiencies of actual as compared with estimated Receipts.

Surpluses of actual as compared with estimated Receipts.

£

s.

d.

£

s.

d.

£

s.

d.

1

Pay, &c., of the Air Force

62,324,542

17

4

189,333,580

12

11

2

Quartering Non-Technical Stores, Supplies and Transportation

71,465,179

1

10

3,266,050

18

3

3

Technical and Warlike Stores

196,511,019

12

5

146,711,178

15

3

4

Works, Buildings and Lands

89,244,347

1

1

2,611,059

15

5

5

Medical Services

947,319

4

1

9,913

14

2

6

Educational Services

1,338,107

2

1

3,617

6

10

7

Reserve and Auxiliary Forces

250,263

5

10

688

10

6

8

Civil Aviation

1,058,101

7

1

166,346

5

9

9

Meteorological and Miscellaneous Effective Services

20,560,333

13

8

828,913

12

0

10

Air Ministry

4,215,941

3

10

2,056

3

0

11

Half-Pay, Pensions and other Non-effective Services

944,112

9

8

39,964

19

10

Balances Irrecoverable and Claims Abandoned

45,771

7

11

448,905,038

6

10

189,333,580

12

11

Total Surpluses

Total Deficits £638,238,618 19 9

£153,639,790

1

0

Net Deficit met from Vote of Credit £484,598,828 18 9"

Resolved: "That the application of such surpluses be sanctioned."—[ Mr. Glenvil Hall. ]

Resolutions to be reported upon Monday next.

Diplomatic Privileges (Extension) Bill [Lords]

Order read for resuming Adjourned Debate on Question (21st June), "That the Bill be now read a Second time."—[ Mr. Philip Noel-Baker. ]

Question again proposed.

8.14 p.m.

I rise to continue the speech which I commenced on 21st June, and although I am sure that what I said then will be within the recollection of all Members of the House, none the less I hope they will bear with me if, for the purpose of picking up the thread of my argument, I recapitulate a little of what I said then in order to show the course of my argument. This is, in my view, a Bill which requires very careful attention, because it gives power to grant extraordinary, almost unprecedented, privileges to British subjects resident in these islands. As I pointed out on the last occasion, it appears from Part II of the Second Schedule that a British subject can obtain here the immunity from suit and legal process which is enjoyed by the envoy of a foreign sovereign Power. He can also enjoy the inviolability of residence accorded to such an envoy, and like exemption or relief from taxes and rates as is accorded to such an envoy. I pointed out the effect of these privileges, and that in the case of one who was selected or chosen to be regarded as a higher official those privileges were not confined to him, but were also extended, by this Bill, to his wife and children.

The Bill puts no limit upon the number of British persons and others who may be given these privileges. It contains express power to give them to the higher officers of any organisation of which a British Government are members with any other Government of any other country, to persons employed on missions on behalf of such organisations, to persons who are representatives of a particular Government on the governing body or committee of an organisation of that character, and to any person on the General Assembly or council or other organ of the United Nations. That is the list of persons who, if they occupy those posts, can be given these extensive privileges. The Minister of State, in moving the Second Reading of the Bill, said that these extensive privileges would apply only to the Secretary-General of the United Nations organisation himself, and to eight or nine Assistant Secretaries-General, of whom one would be British, so that immunity in this form would probably be confined to only one man.

If that be the case, why do the British Government ask for powers which are so wide, so completely unlimited, as to numbers? If it is desired only to give these privileges to one British subject working on the United Nations organisation, why take power to give them to persons filling any of the posts in the categories I have just mentioned? On his own admission, the right hon. Gentleman is here asking for far wider powers than he requires. That, in itself, is a good reason for opposing this Bill. But my opposition is not confined to that ground alone. Under Article 105 of the Charter of the United Nations, it is provided that the representatives of the members of the United Nations, and the officials of the organisation, should enjoy—and these are the words which are important— going beyond Article 105 of the Charter, and what is the case for this? Why is it necessary—and this is the question we ought to have answered—for the proper exercise of the functions of an official of any of these organisations, that a British man, resident in these islands, his wife, and his children, should be free from all rates and all taxes, and free from suit and legal process? That is the question we ought to have answered, and the burden is on the Government of satisfying us that this is necessary before this Bill receives a Second Reading.

There is one Member of this House, the hon. Member for the Scottish Universities (Sir J. Boyd Orr), who, I am sorry to say, is not in his place but who is no doubt fulfilling important duties elsewhere. Can there be any doubt that he would come within the higher category of officials under the terms of this Bill? If he is so regarded, what will be the result? He will receive his salary from this House free of tax, he will enjoy the privileges of a Member of Parliament, he will receive the emoluments for his work on the body of U.N.O. on which he is serving, and he will, in addition, receive his private income free of all tax and, if he is regarded as a higher official, he will pay no rates on his house. I do not know whether that hon. Member is or is not married, but if he is and his wife has a private income no tax will be paid on that, and if he has children the same will apply to them. In this connection it is interesting to note that there is no definition of children here, nothing to say that children must be under the age of 21. Parents speak of people as their children when they are well over that age and here, if a parent has employment on one of these organisations and is getting on in years he will be able, as I see it, under this Bill, to claim that his son, who may be aged 30, should be regarded as his child for the purpose of avoiding taxation. The right hon. Gentleman was asked a question about this and he did not give a very satisfactory answer. I hope now that he will give an assurance that some words of limitation will be introduced into the Bill to define the word "children" and limit the provision to those under 21.

That would be the position of that hon. Member if he were regarded as a higher official on the United Nations organisa- tion. He would enjoy great wealth and privilege at the hands of the Socialist Government. His example might excite competition among hon. Members opposite, and their constituents might suffer from their long absences, but in view of the onerous duties they will receive a very satisfactory return. Why is it necessary to have all this privilege to ensure that their work is done properly? Let me contrast the position of the higher officers with that of officers serving in a junior capacity, who are also dealt with in this Bill. If hon. Members will look at Part III of the Second Schedule they will see that all that these junior officers receive is

What is the reason for that? His wife and his children do not receive any privileges at all; it is considered that the junior officer can do his work without those privileges. Why should not the senior? What is the reason for this curious means test which is now being introduced and perpetuated by the Socialist Government? And what a means test it is. If one is earning a large enough salary to put one in the higher category, what a wonderful lot of privileges one can obtain. I would suggest that the privileges which are given to the junior officials are really quite enough, and that it really is enough for them and for the senior officials to enable them to carry out their duties. It is not for me to make out that case, however; it is for the Government to show that there should be these two categories and why it should be necessary that the senior persons should have so much more.

This Bill makes one great distinction from the 1944 Act which was criticised by Members of the Socialist Party, by the present Minister of Health, by the hon. Member for Ipswich (Mr. Stokes), and by hon. Members on this side of the House. Under the 1944 Act, no British subject resident in this Island could get these Income Tax concessions or could live rate free and have all the privileges, but the present Bill enables that to be done and we should be told why. I have looked up what was the position under the League of Nations and I think it was correctly stated in Halsbury's "Laws of England" that representatives or members of the League of Nations and officers of the League engaged on the business of the League enjoyed diplomatic privileges and immunities. No one will suggest that the League of Nations broke down because individuals working on it suffered from insufficient privileges. Why should individuals, not only those connected with the United Nations organisation but also those connected with any other international organisation of which this Government are members, be given more?

It is true that an Order in Council will come before this House and that we can, if we think fit, reject it, but there is no power to amend or alter it. We have either to take it or leave it, and in this kind of connection I do not think that that is a particularly satisfactory procedure. Under the 1944 Act the Foreign Secretary has to keep a list of those enjoying diplomatic privileges, and that is a very good thing, so that it can be looked at in order to see who is on the list. Under this Bill he would have to keep a list of the wives of all the members who are in the higher categories and of their children. I suppose there will be a separate Department to see that that list is correctly kept.

So far I have dealt with the position of individuals under this Bill and have pointed out, by way of recapitulation, that there is no limit to the number of British people who will be freed from Income Tax. I wonder indeed how this Bill has escaped the eagle eye of the Chancellor of the Exchequer and how he has been persuaded by the Foreign Office to let so many possible victims get clean out of the bag. Perhaps we shall have some explanation later. I must say that the Foreign Office seems to have had much more success in this matter than any of us had in the course of the recent Debate on the Finance Bill.

Let me turn to the position of the organisations. There will be U.N.O., I.L.O., U.N.R.R.A., U.N.E.S.C.O., E.C.I.T.O.—[ Interruption. ]—I do not know what all these things mean so I cannot use the proper titles. When I look at the Votes and Proceedings for Thursday, 27th June, I see that a copy of another Order in Council has been presented. The passage reads:

The only other extra privilege that the United Nations organisation want—and this is very interesting—is that they should be able to send their Press information at the Press rate. Is an Act of Parliament really necessary for that purpose? Are not Cable and Wireless about to become a State monopoly? Does the Post Office possess anything in the shape of private enterprise—or some would say any enterprise—and why is it necessary to put a provision in the Bill to make it statutory that they should enjoy the Press rate? I cannot help wondering whether the Government are not quite so confident about the nationalisation of Cable and Wireless as they seemed earlier this afternoon. I will leave that point for the moment.

If the Bill is intended merely to provide for U.N.O., let us have a special Bill dealing with that organisation and let us consider it on its merits. But the Bill goes far wider than that. It is vague and indefinite and the time has come when the most careful consideration should be given to the whole extent and nature of diplomatic privileges. The Act of 1944 was deliberately made of limited duration, with power to extend it by Order in Council so that there should be an opportunity for Parliament to review it. The Bill destroys that opportunity, because it converts that temporary code into a permanent one. I hope it will not be considered too late for this matter to be reconsidered once more. I would like to remind hon. Gentleman of a few words uttered by the present Minister of Health about this matter in the Debate in 1944, in case the right hon. Gentleman's recent ill health has prevented him pressing his arguments upon the Cabinet. He then said what was very true. It is particularly true here, because we are also asked in the Bill to give a blank cheque for granting privileges to the "judges, advocates and suitors," before the international court. The right hon. Gentleman is asking the House to give him power to give any privileges which "may be necessary for the fulfilment of their purpose." He is really asking for a blank cheque. The right hon. Gentleman the Minister of Health said, in the previous Debate to which I have referred:

8.38 p.m.

Whatever view hon. Members opposite may have of the Bill, I am confident that all hon. Members on this side will wish to congratulate the Government on the speed and initiative they have shown in carrying out this part of their obligation under the Charter. We have, indeed, shown that we are sincere in carrying out the policy outlined by the Prime Minister, and that we intend to make the United Nations organisation an overriding factor in our foreign policy. This Bill is one small step in that direction. We are here, in effect, implementing an obligation which we have already undertaken under the Charter of the United Nations, an obligation contained in Article 105 of the Charter, which Article was accepted with all the other Articles of the Charter by hon. Members opposite just as much as by hon. Members on this side when the Charter was ratified in this House last year. It is a matter of some surprise, when a Bill is presented in order to implement those obligations, that those same hon. Members should now come for- ward to oppose, to whittle down, and to obstruct the Measure instead of giving it the support which it ought to have. It is all the more remarkable in view of the fact that this Bill has already been passed through—

On a point of Order, Mr. Speaker. May I call attention to the fact that the hon. Gentleman has just charged hon. Members on this side of the House with obstructing this Bill? I am not quite sure—I ought to know what the recent Rulings are—but I understand that a charge of obstruction brought against either an individual hon. Member or a number of hon. Members is out of Order.

No, obstruction by a legitimate charge. It may have been thought to have been out of Order in the past, but this is a mistake, and I am quite certain that it is in Order now. An hon. Member charging an individual with obstruction and imputing an unworthy motive would not be in Order.

Is it in Order for an hon. Member to describe those on the other side of the House as just a lot of frauds?

It would be out of Order to describe hon. Members opposite as a lot of frauds in a personal sense.

My point of Order is whether, in using the plural, I am in Order. [HON. MEMBERS: "Withdraw."] Withdraw your neck. [ Laughter. ]

When the remark imputes a rather unworthy motive to an individual, that is out of Order, but to suggest that the Opposition or that the side to which one is opposed is advocating a fraudulent programme, that is another matter. That would be clearly in Order.

I do not regard this as a matter for laughter and I am sure the House will not. The hon. Gentleman made a most serious charge under the guise of a point of Order. In asking whether it was in Order to describe hon. Members on this side of the House as "a lot of frauds." I ask that he should withdraw that remark.

I have pointed out what would be out of Order. I do not think we need pursue the matter any further.

I do not think it is necessary, but if I got under a tender skin, I will withdraw it.

The Opposition is entitled to obstruct and we are legitimately entitled to accuse them of obstruction. I think we may regard the point as established, because, in fact, we have a Bill which could have been passed through without very much trouble and could have been completed last Friday but hon. Members opposite were so anxious to resist the Bill, that they insisted upon extra time for discussing it.

May I ask how the hon. Member obtains all this astonishing information? The only person who has spoken on the Bill from this side is myself, and I asked for explanations, and expressed no anxiety at all.

It is fairly clear from the fact that the Bill was down for discussion last Friday and that there was time to complete the discussion if the hon. Gentlemen opposite had been willing, but apparently they were not willing to cooperate in this matter. I have listened to the hon. and learned Member for Daventry (Mr. Manningham - Buller) speaking on the Bill on two occasions and have tried to make out the reason for his objection. He seems to have some objection to privilege and the unfair distribution of privilege. He even twitted us with introducing a Bill to sustain privilege, when we have in fact been vigorously opposing it. That is based in a simple misunderstanding. Our party has always opposed the type of privilege which arises from the chance of birth or wealth, or from social position or economic power, and those privileges we shall continue to oppose and, I hope, eventually root out from our social system. But we are dealing here with a totally different matter—the question of privileges necessarily associated with the carrying out of service to the community. That is a very different matter. Hon. Members of this ancient House enjoy special privileges which are not accorded to other British citizens. Are hon. Gentlemen opposite in favour of the abolition of those special privileges? If they are opposed to all privileges, let them get up and say, "Abolish these special privileges which we enjoy." They would then be, for example, liable to process under the laws of libel when they make speeches of attack and accusation against hon. Members on this side of the House or against persons outside the House. Do they want that to happen? Clearly not. Clearly, they are in favour of privileges which are an essential part of the carrying out of one's functions as a servant of the community. We are servants here of the British community. But there are also people acting as servants of the world community, and it is just as essential, that those servants of the world community should have the privileges necessary to the carrying out of their functions and their service as it is that we should have our privileges. Hon. Gentleman opposite pay lip service to the conception that we are moving forward towards an era of world government. The right hon. Gentleman the Member for Warwick and Leamington (Mr. Eden), speaking in this House last November, used very impressive words on the new conception of world authority towards which we were moving. He said:

In order to enable them to exercise that duty and that allegiance, there should be no bar on the freedom that is necessary today in order to carry out those duties efficiently. By Article 100 of the Charter, accepted by hon. Gentlemen opposite, we have already accorded such privileges to members of the Secretariat of the United Nations organisation. We have agreed, and hon. Gentlemen opposite have agreed, that in the performance of their duties the Secretary-General and the staff shall not seek or receive instructions from any Government or from any authority external to the organisation. Is not that recognising a remarkable degree of privilege and immunity, that those members of the secretariat of the United Nations organisation should not receive instructions from any outside Government, from any nation State? Yet that is the conception to which we have to move if we believe in these ideals to which hon. Gentlemen opposite have subscribed in words. We have to develop this conception and we have to apply it with proper discrimination. The hon. and learned Gentleman almost poured out crocodile tears, first, for the sake of the poor junior officials who were getting only rather limited privileges. Then he went on to say that the higher officials ought to be brought down to their level and that there should be no distinction of privilege and immunity. But we recognise, again as a general principle, that distinctions are made, not on the basis of difference of wealth and social position, on difference of emoluments, but on the difference between the type of service rendered to the community, and, in this case, to the world community.

I do not know whether the hon. and learned Gentleman has understood, but he certainly did not quote the fact that the privileges conferred upon the higher officials of the United Nations organisation, and similar international bodies, are to be alike in character with those accorded to the envoy of a foreign sovereign Power accredited to His Majesty. Does the hon. and learned Gentleman desire that the high officials of the greatest international bodies shall be placed on a lower plane than the high officials of foreign Governments? Is that what he is asking? If so, it is fairly clear that when hon. Gentlemen opposite pay lip-service to the conception of a world community, and it is only lip-service, they are still living in a world of a narrow petty nationalism in which they wish to claim special exemption for British citizens while willing to accord in general principle, rights to the international body. The hon. and learned Gentleman objects to special privileges and yet he is claiming that British citizens shall be exempt and put in a class apart; that in regard to the international bodies, British citizens shall be exempt or enjoy the same freedom and the same immunities and privileges which are accorded to the nationals of other countries.

Here we have, once again, an example from hon. Members opposite of the kind of thing they have done, time and time again, in the past. They have proclaimed their beliefs in an international organisation, they have proclaimed in words that they were internationalists, but, in deeds, throughout they have been nothing better than petty nationalists. They were so when it was proposed to strengthen the League of Nations into a body which would have genuine international authority. Time and time again they torpedoed it when it was proposed that any obligations should be imposed—as for example through the Geneva Protocol—which would compel this country to surrender some part of its exclusive and absolute sovereignty.

It is all very interesting but, on the Second Reading of this Bill, to go over the history of, I do not know how many years past, is a little outside the scope of the Debate.

I was merely seeking to illustrate from the past, Mr. Speaker, the attitude which the Opposition are now taking towards this Bill and, with due respect, Sir, if one is to understand their attitude, then I think it is possibly legitimate to show that it is a logical conclusion of the attitude which they have adopted in the past.

Might I then, warn the hon. Member, in a most friendly way, that if he goes too far into history, he may himself be open to the charge of obstruction?

I bow to your Ruling, Sir, and I am sure the hon. and gallant Member for Holderness (Lieut.-Commander Braithwaite) was only anxious to avoid tedious repetition of the unpleasant history of his party. I will spare him those pains and will merely say, in conclusion, that when I see this attitude taken up once again by hon. Members opposite I say, "Thank goodness they are not in power at this moment, to do again the harm they did between the two wars by paying lip-service to international ideals and torpedoing every action which was intended to put those ideals into practice."

8.58 p.m.

I would like first to congratulate the Government upon the fact that the Amendments to this Bill have been printed in black type, which is a most welcome innovation in any Bill and I hope this practice will continue. I find special pleasure in congratulating the Government on this occasion because this suggestion has been put forward for many years, and I am glad to see that with the new mandate to "Face the Future" we have been able to accomplish this reform.

It is an old Parliamentary trick, which even a new Member can adopt—and the hon. Member for Luton (Mr. Warbey) adopted it—to put into the minds and motives of the Opposition something which does not exist there at all. The hon. Member, I think I shall be able to show, has not read the Bill or, if he has read it, has not understood it. Certainly, it is within the recollection of the House that, if he listened to the speech of the hon. and learned Member for Daventry (Mr. Manningham-Buller), he did not understand what was said.

I judge, from the fact that he has not understood the Bill or the convention, that perhaps the fault lies on the hon. Gentleman's side. However, the area of criticism of this Bill is very narrow. On this side of the House it is clear, from what the hon. and learned Member for Daventry said, that there is complete agreement that people in high positions in the United Nations organisation should have a position where they are not trammelled by fear of legal process or taxation. I should say it is agreed on all sides of the House that the convention which was entered into to assure that immunity, should be carried out by this House at the first possible opportunity and with the utmost loyalty. That is agreed on all sides, but where the criticism of this Bill comes in is that the Government have introduced it in a Measure which contains several mistakes or fallacies; in other words, they have not made an efficient job of it. It is no good the hon. Member for Luton, in a rather querulous and petulant mood, saying that because the Opposition point out these mistakes therefore they are disrupting the spate of legislation which the Government are so eager to carry through, and that it is really very naughty of them not to have agreed, in half an hour on 21st June, to whatever mistakes this Bill contains.

I am not sure that the hon. Gentleman was here on the previous occasion when the Bill was introduced. He would then have heard the hon. and learned Member for Daventry (Mr. Manningham-Buller) not only make a general attack on the Bill, but a specific attack on the fact that it conferred special privileges on British citizens, and that it was an extension of the Act of 1944 in order to confer those privileges.

There is very little that the hon. Member has said with which we need quarrel. It is true that the attack was made on the proposal to confer the privileges which go beyond the convention and bring British subjects into a class where they are receiving privileges which the rest of the civilised world does not grant. The area of criticism lies in the words of the right hon. Member the Minister of State when introducing the Bill. He said:

The main objection to giving either the British subject or the foreign envoy greater privileges than are provided by the convention, lies mainly in the tax sphere. Section 18 of the convention which, I repeat, we ought to implement with the utmost spirit of loyalty at the earliest possible opportunity, says that:

As a concrete instance, let us assume that His Majesty's Ambassador in the United States has an income of £10,000 a year in respect of his salary as an Ambassador, that he has an entertainment and expenses allowance of £15,000, and a private income of £10,000, £5,000 of which is drawn from the United States and £5,000 from elsewhere. In the United States he would not pay Income Tax on his salary, his expenses allowance, nor on his income drawn from the United Kingdom, or outside the United States, because the United States regards him, for the purposes of taxation of his private income, as a person not resident in America. But he would pay on his £5,000 drawn from sources within the United States.

We are well known for being "mugs," if I may so put it, in the international sphere, and perhaps recent developments have shown even more that we are "mugs." What happens in the case of a foreign envoy here? The British Government, in the reverse case, lets him off tax on that £5,000 drawn from England. When the United States brought in this rule in 1931, they thought it only right that diplomats should pay tax on their private incomes as a contribution to the United States war effort. That rule was not adopted in England. The result is that one finds foreign diplomats in England who have private incomes, who do not pay tax on their incomes, and naturally do not require any emoluments from their own Governments. There is one notorious case in London of a foreign diplomat who has no salary, but who enjoys a tremendous advantage from the fact that he is in a foreign Embassy and is not paying any tax. Soon after the United States brought in the rule that diplomats should pay tax on their private incomes in America, two attachés left the British Embassy. The relevance of that is that the members who drew up the Convention of the United Nations, rightly thought that such tax exemption of private incomes of officials of the United Nations should not be afforded. That is why they specifically limited it to exemptions of taxation in relation to salaries and emoluments. But the Government, in their wisdom, have expressly said that that exemption provided by the Convention is to be applied to junior officials, that is, under Part III of the Second Schedule where they are afforded:

There are other points on this matter of taxation, which follow on the same lines, with which I will not weary the House. There is the question that envoys do not pay Purchase Tax, because Purchase Tax is set out separately, and therefore, under international practice an envoy need not pay Purchase Tax. A British subject appointed to a high position in U.N.O. will enjoy tax-free income in relation to his salary and emoluments—quite rightly—but he will also enjoy the whole of his private income tax free. If that is wrong in the case of a foreigner, it is even more wrong in the case of a British subject. That is the criticism to which speeches from this side of the House have so far been directed. It is not opposing this spirit of unity and the idea of the United Nations, which the hon. Member for Luton tried so hard to foist on to this side of the House.

I am reluctant to interrupt the hon. Member, but I want to get it clear. He said that he is in favour of exempting from taxation the official emoluments received from the United Nations or other international organisation, and the hon. and learned Member for Daventry (Mr. Manningham-Buller) agreed?

Yes. I hoped I had made that clear. I said that I thought that emoluments and income received for doing the work should certainly be free from taxation.

It is an excellent suggestion. I do not want to repeat the first part of the speech of the hon. Member for Luton, but obviously British subjects, in a situation like that, ought to be on a level with the foreign officials of the United Nations, and should not be dependent on the chance of being situated in their own country.

I am very glad the Opposition have been converted. To read the speech of the hon. and learned Member for Daventry on the previous occasion certainly gave a very different impression indeed.

I must ask the hon. Member to read my speech, which was directed to the higher officers who were getting exemption on all their income.

It is quite an old debating trick to say, when one has been proved wrong, that one is pleased to see that the Opposition have been converted, but I am sure hon. Members will not be taken in by the skilful debating tricks of the hon. Member for Luton. But let me add one further point. If it is wrong, as I submit it is, that envoys and diplomats in this country should be put in an exceptional position with regard to their private incomes and, although I will not go into technicalities, with regard to some aspects of rates and of taxes like Purchase Tax, it is even more wrong that officials of the United Nations should be unnecessarily put in that position. I say unnecessarily because the convention does not ask it. An envoy can be declared persona non grata, an official of the United Nations cannot; therefore, if a small country appointed a millionaire to this country purely with the object of saving him an enormous amount of Income Tax, as has happened in the past, this country could if it wished intimate that the minister was persona non grata, but could not do that in the case of the United Nations official. If, therefore, there is any justification—which I doubt—for putting the envoy and all his staff, all his servants and officials, in such a peculiarly privileged position, there can be none in putting the officials of the United Nations in that position. The minister is accredited to somebody in this country, the official of the United Nations is not.

My other point of criticism of this Bill is rather a technical one. In the wording of the Bill no regard has been had to the legal basis on which immunities and privileges are usually accorded. The Bill as at present drafted runs counter to the theory of immunities and privileges. It is a well established principle of international law and of English law that the immunities and privileges are not those of the individual diplomats but of the envoy, ambassador or Minister. However much an individual diplomat wishes to keep his immunity, either from prosecution for dangerous driving, for murder, for not paying his rent, or for not paying bills for necessaries, if his ambassador says that the immunity is not to be extended, there is nothing that diplomat or his officials or servants can do in order to keep it. But the Schedule reads throughout as if the immunities and privileges of an envoy were attached to him personally and then to his officials and staff. I submit that it will be out of keeping with the principles of international law if the Bill continues to be worded as if the immunities and privileges are those attaching to the individuals themselves. The Schedule, in my submission, should be reworded, so as to fit in with Section 20 of the Convention, which meets that point entirely.

Privileges and immunities are granted to officials in the interests of the United Nations, and not in the interests of the individuals themselves. This Bill would read much more in accordance with international law if the Schedule were drafted on those lines. It is worth noticing that, if it were drafted on those lines, even privileges as to taxation cannot be withdrawn by the Secretary-General. In other words, if the position of the United Nations officials were abused, if an official's appointment were obtained in order to obtain him exemption from taxation, it would be no answer to the right hon. Gentleman opposite to say that under Section 20 of the Convention the Secretary-General will have the right to waive immunity. From a study of Section 18 of the Convention, it will be seen that there is a difference between immunities and exemption: immunities are from legal process and national service obligations; exemptions are from taxation. It would only weary the House if I went through the other objects of Section 18, and pointed out where the Convention is exceeded.

In my submission, it was not right for the right hon. Gentleman to say the Bill goes a little bit beyond the Convention. It goes a long way beyond the Convention. It goes an unnecessarily long way beyond the Convention, because it is not in accordance with international law, and, what is much more important, it is not in accordance with the considered deliberations of the committee of the United Nations on this subject. The Government would do well to correct these mistakes, which are not very many, but which are serious; and then they will have a good Bill, which we shall all support with a very good heart.

9.18 p.m.

These objections appear now to be highly technical. I venture to suggest that they are, most of them, either wrong, or based on a position that has no precedent. The nearest precedent that there is, I think, is Article 7 of the Covenant of the League, which has already been referred to, and which gave to officials of the League, when en- gaged on the business of the League, diplomatic privileges and immunities. The better view is—and it is now recognised—that that privilege equally extended to them when they were in their own countries. Therefore, there can be no question—as I understand it, there is now no question—of drawing any distinction between, let us say, an envoy of French nationality and an envoy of British nationality in this country. Then what remains?

Take the objection—a rather curious one—of the hon. and learned Member for Daventry (Mr. Manningham-Buller) to children. It is, surely, well established and long recognised that diplomatic privileges extend more generally than to children—to the family of the envoy. I feel extremely doubtful, if the question arose, whether there would be any other test than the test of family, and some degree of residence with the envoy or representative. Accordingly, it seems to me that, in this respect, in substance, this goes no further than the usual view of diplomatic privileges and immunities.

A very curious attitude was taken up by the hon. Member for Northwich (Mr. J. Foster). He said, if I understood him rightly, it is true that diplomatic privileges and immunities undoubtedly protect any person of a diplomatic character from liability to taxation in respect of his emoluments and in respect of income he derives without the country to which he is accredited, but what he objected to was that this privilege went beyond that and gave him a further immunity as regards the income he may derive within the country.

I do not think that the hon. and learned Member understood me correctly. What I said was that in England exemption is accorded to a diplomat for an income arising in England, and that in my submission that should not be so.

I fully understood what the hon. Member said. It struck me as very curious. His only objection was that the privileges were granted in the English fashion rather than in the American fashion. I cannot help feeling that in his distinguished and long service in America the hon. Member must have been corrupted by his stay in that foreign land. He has lost a little of his native generosity towards the diplomats of other countries, and towards the envoys and representatives whom we are considering in this Bill. What he was saying in effect was that we should treat every other diplomatic representative as we have done in the past, but as regards these persons, while purporting to give them the same diplomatic privileges, we are to stay our hand at the last moment and give them something less, because that is all they would get in America. It seems to me to be a somewhat grudging attitude to take, that the representatives of other Powers should be granted privileges on the scale he accurately described, but when it comes to granting privileges to an international organisation, then, for some reason which I fail to understand—I hesitate to attribute it to any psychological motive—we are to give them less than is granted to the representatives of other Monarchs or Powers.

The point is that it is not provided in the Convention, and the Bill is limited to the Convention.

It is not provided in the Convention. But it is not provided in law that these additional privileges should be given in this country to representatives of other Powers, as they always have been given in the past. What it comes to is, that in this one class of envoys, and in no other, we are to deny the privileges granted as a generosity and not as a right. It was said earlier in regard to this Bill that it goes a little beyond the strict letter of the law, but if the hon. Member refuses to concede the point, we should be drawing an invidious distinction in our attitude towards national organisations and international organisations.

9.26 p.m.

Having listened to some of the speeches from hon. Gentlemen opposite, I am not certain whether they fully appreciate the difference between the Convention and the Act of 1944, and the powers which they seek to give under this Bill. No one on this side of the House would suggest that reasonable facilities should not be granted to British or other officials associated with the extremely important United Nations organisation.

I think that on this side of the House we can be justifiably surprised that hon. Gentlemen opposite who received, we are told, a mandate to abolish privilege, should now seek powers by the amendment of the Act of 1944 to confer very wide privileges upon an unspecified number of British subjects nominated by, I understand, the right hon. Gentleman the Foreign Secretary in consultation with the Secretary-General of U.N.O.

Exemption from rates and taxes and from rationing and coupons—from all those restrictions in which His Majesty's Government are so prolific in these days—is no small privilege to give to a British subject because he is a high official of U.N.O. or any organisation affiliated to it, and to his wife and his family. When I say "his family," I hope that the hon. Member for Luton (Mr. Warbey) will reflect upon his words about inherited privileges.

The right hon. Gentleman the Minister can hardly argue that the concessions in Part III in respect of "other officers and servants" are exactly small concessions. In the Ten Commandments we are bidden not to covet our neighbour's house, nor his wife, nor his ox, nor his ass. In these days there is little which our neighbours possess which we could covet. If he has a house, it is almost certain to be requisitioned by one of the Government Departments. It is waste of time covering his cattle, because these are fast dwindling in numbers on account of shortage of feeding-stuffs. But, enviable indeed is the lot of the fortunate chosen—whether few or many we are not told—who are the British officials attached to U.N.O. I wonder whether, in order to bring the Ten Commandments up to date, we ought not to move an Amendment to leave out all after "British officials attached to U.N.O. and other affiliated bodies." I hope that the right hon. Gentleman will cast a friendly eye upon the employees of the friendly societies when selecting personnel to serve with U.N.O. organisations, because, perhaps, one or two posts in that organisation might be something to make amends for the broken promise which the typist's error caused.

Does the right hon. Gentleman realise the extraordinary anomalies which will be created. The Chief of the Imperial General Staff and the Permanent Under-Secretary of State in the Foreign Office both pay Income Tax on their salaries and private income while some other official, seconded from a Government Department to U.N.O., gets his salary tax free, and is exempt from rates as well? Perhaps the right hon. Gentleman will look at section 13 of the Convention and tell us when he replies, whether it means that a high official can maintain his wife and family in a house in the United Kingdom tax free. If it means that, I need not remind him that that is a concession not accorded to any of His Majesty's Ambassadors abroad, who happen to own property in the United Kingdom.

Perhaps I could answer that question now without waiting any longer. Section 13 applies to all representatives of Governments to international conferences. By the Bill, all British representatives are excluded from its operation.

I am glad to hear it is not proposed to include that concession as well. Would the right hon. Gentleman also tell us when he replies what is the definition of a servant in Part III of the Second Schedule? It says:

"Immunities and privileges of other officers and servants."

The word "servant" can have a very wide meaning. What categories of people is it proposed to include within the term "servants"? No one would wish to decry the extreme importance of U.N.O., and no one can reasonably object to the provision of the ordinary facilities for the junior officers, but I wonder if it is really necessary that British subjects who belong to U.N.O. should be placed in such an advantageous position over and above their less fortunate fellow creatures. Would the right hon. Gentleman tell us exactly how many persons are going to be affected, in the categories of the higher officials, and of the officers and servants, by reason of this exemption and what will be the cost to the Treasury? Hon. Members opposite cannot have it both ways. During the discussion on the Finance Bill the Chancellor of the Exchequer told us that he only had £2 million to play with in respect of Purchase Tax reliefs. He was unable to agree to a number of Amendments put down from this side in respect of tax relief on articles which affect the lives of millions of our fellow-citizens in this country. We are being invited under this Bill to give a blank cheque, to exempt an unknown number of officials from contributions to the Exchequer, while those officials will still enjoy the full rights of British citizenship.

9.34 p.m.

The House was treated a little earlier this evening to an astonishing speech by the Member for Luton (Mr. Warbey). He is still engaged in earnest conversation, but perhaps I can claim his attention at some point in the course of my remarks. He made a more astonishing speech than usual; he actually made a speech in support of the Government. No doubt the hon. Member hopes in due course not only to re-establish himself in the eyes of his Front Bench but also to qualify for one of the high posts referred to in this Bill. What has happened to the Socialist mandate at the election? At that time the idea of privilege was no longer to count. The hon. Member for Luton threw it to the four winds. He said that henceforth privilege could readily be transferred from the economic and social field to the political field, or at least that was the purport of his remarks. We are still to have privilege. Privilege is still to the fore and presented with all the force of which Socialist Members of this House are capable. Gone is the idea that we had of an equalitarian society. Privilege is to remain, but for a new class in the community, a new creation of their own. Privilege is taken away from the former circles of society and added to the political class which they are creating.

The noble Lord may make what fun he likes of anything I say, but if he would make quite sure what I said perhaps he would not have so much fun. I said not that we should have political privilege in place of economic and social privilege, but that there were certain privileges which were essential in order to enable people to carry out their services to the community, such as the privileges attached to being a Member of this House.

Political services. That is the same thing: transferring from a former economic and social class to a new class which renders political service. The idea of privilege is not gone, and it is the Socialist Party which is prepared to maintain it. I take a diametrically opposite view. I think that good living and a high standard of life should very largely devolve to those placed in a commercial and economic setting. They have little else to look for as an incentive. But when we come to service to the State, and service to international organisations. I say that the higher the scale, the greater the oppor- tunity, and the greater the power, the more frugal and the more simple the life should be. Were the founders of the American Constitution rich men? Was Pitt a rich man? Was Abraham Lincoln a rich man? For all that he was a clever lawyer, he died in fairly moderate and simple circumstances. I think that one of the things the people of this country most resented during the war, and which was altogether out of touch with the spirit of common service during that time, were the diplomatic privileges and immunities which were given on a fairly lavish scale in this City of London. I do not wish to particularise, but the appearance of a sleek, black car, richly furnished, moving swiftly through the streets, was not one to edify the public in the days of the blitz. And it may very well be the case that certain diplomats and representatives of foreign countries enjoy a standard of living at this present time of national food shortage which is altogether out of line with that of the rest of the community. Are hon. Members opposite who came into this House, who were specially sent here by the public to support equality for all, prepared to stand up for things of that kind? They must be, if they are prepared to support the Government in the Second Reading of this Bill.

My hon. and learned Friend the Member for Daventry (Mr. Manningham-Buller) raised the question of the position of the hon. Gentleman the Member for the Scottish Universities (Sir J. Boyd Orr). He is evidently the first individual who will benefit from the privileges and immunities given under this Bill. But I have no fears there. The hon. Gentleman is a Scotsman and, by nature, I should say a frugal man. He also comes from a university, from a background of professors and people who never desire to rise to any high and brilliant social scale.

We can trust the hon. Gentleman the Member for the Scottish Universities not to abuse the privileges which are given to him under this Bill. But I would like to ask the Minister of State what is the position of his Parliamentary Private Secretary whom I see moving about during the Debate, exercising perhaps some impending privileges under this Bill by consulting various international authorities. He, I imagine, is excluded under the Second Schedule in the Proviso at the top of page 5, as a representative of His Majesty's Government in the United Kingdom on one of these international bodies. The hon. Member shakes his head. Do I understand him to mean that he is not excluded from this Proviso, because, if so, he must quality for certain benefits and privileges under this Bill. I do not know from what background the hon. and gallant Gentleman comes, but under this Bill we are giving rights of importation of all kinds of good things from abroad; we are giving immunity from taxes and we are enabling people to live rent free in premises which might even be given to them by certain friends and associates. I would like to know who else is to qualify under this Bill for benefit; what other Englishman, and for what reason. The Bill raises the whole question of the position of Members of Parliament in offices of profit under the Crown. Why do we disqualify hon. Members from Membership of this House when they are appointed to the Coal Board or to the B.O.A.C., but not when they are appointed to these international organisations? I should like an answer from the Minister of State on that matter.

There is a very curious international organisation called the Central European Transport Advisory Committee, or some such nomenclature. What is to prevent an hon. Member opposite, coming from a background of railway trades unionism, being appointed as chief of this magnificent sounding new organisation? What is to prevent the Chancellor of the Exchequer from having recourse to the National Land Fund, and through the good offices of the National Trust providing the chairman of this organisation with a fairly extensive establishment in this country? It could quite well be done under this Bill. The hon. Gentleman the Member for Luton says that that is a political service and that such a man is entitled to privileges. How far do they go? Do they go as far as the provision of a border castle in Wales with a host of servants and a retinue of officials, as far as the rights of importation of every sort and kind of aids to the good life for the trade union representative? The chairman of this European Board has control of the European railways. What would be easier than for the French, who for some reason or other might wish to do him a service, to send him large quantities of pâté de foie gras from Strasbourg on his own railway services? The possibilities are quite unending and one can carry it to any degree one likes.

I think this House, which accorded the 1944 Act such very careful scrutiny and amended it in many particulars, should get down to the task of amending this Bill drastically. As I have said, the Socialist party has abandoned the idea of equalitarianism in favour of privilege. This Bill accords to English individuals such privilege and power as Hitler with his underground museums never succeeded in establishing for himself, such power and privilege as only William Randolph Hearst, with his gorgeous, cloud-capped palaces has attained.

9.45 p.m.

I venture to take part in this Debate because I have been for most of my life a member of the League of Nations secretariat. The issues we are discussing now are issues with which I am, perhaps, more familiar than some hon. Members opposite. I followed with considerable amusement the latest contribution to the Debate. So far as I understand it, the issue is not whether it is iniquitous that envoys of foreign Powers should have certain privileges. I could not follow the hon. Member for South Dorset (Viscount Hinchingbrooke) in his sans culottism in that regard. It is the established practice of civilisation that foreign envoys should have certain diplomatic immunities and privileges. The only issue is whether high officials of the United Nations should be granted that status, with the accompanying immunity and privileges. The Charter says that that shall be done. The Convention also lays down in general outline how that shall be done. In different countries the practice varies slightly. In this country we apply our practice to the question of diplomatic privileges and immunities for the high officials of the new international organisation. It is not unfair that the officials, of whatever nationality, who serve the United Nations organisation should be put on exactly the same footing. The whole discussion from the opposite benches has proceeded on the assumption that the officials, if they happen to be British in nationality, somehow belong to this country in a way that the other officials of the United Nations do not belong, and that they should not have the same position when in this country as their fellow members of the United Nations secretariat.

The whole point is that these are international officials who are, for the purposes of their duty, put on exactly the same footing in regard to each other, regardless of their nationality. The seat of the League was in Switzerland. The Swiss officials were not given the same position as other officials of the secretariat, and all of us felt that it was a grave injustice to people who were doing the same job but were not getting the same salary or anything like the same conditions. We had just about twice the salary of our Swiss colleagues. That was not logical, when internationally we were all on the same footing, were bound by the same loyalty and the same rules and were governed by the same conditions. All that the Bill attempts to do is to apply that principle to the high officials of the United Nations whether they are British or of any other nationality. If we want to make a success of this Chapter of the Charter, that is the way to do it and there is no other way. The issues that have been raised from the other side of the House are red herrings, surmounted with red flags and Tory coronets.

9.49 p.m.

It is very easy indeed to describe these officials as international persons and to say that therefore they should have these privileges which my hon. and learned Friend has indicated. They are not international persons at all, and the question of privilege does not arise with regard to the particular gentlemen whom my hon. and learned Friend has described. I venture to suggest that privilege is a very restricted thing. It is not a matter of extension throughout the world to these corporations and these bodies of persons such as we have now. It has always been within our law a restricted thing. Some two or three years ago a Debate took place in this House on the question of attaching privileges to U.N.R.R.A., and certain speeches were made which demonstrated that we were, in fact, creating a new precedent by giving the privilege to a corporation as distinct from a person. Hitherto, privilege has been exact and restricted. It has been restricted to a person—to an ambassador and to his own staff. Some years ago we extended that privilege to the U.N.R.R.A. Corporation.

We are now extending that privilege to a vast, unrestricted corporation of unknown and untold personnel, and the privilege can be claimed merely by the director for the time being of the corporation. It is no individual's privilege. He is not like an ambassador who says, "These are my servants and this is my privilege, and I claim privilege for my servants." We are faced with privilege being conferred on an organisation consisting of countless numbers of people, all of whom will have the liberties which have been described. What is the point of saying that these privileges are a natural part of the international organisation? They are nothing of the sort. These privileges are conferred by Parliament and by His Majesty in Parliament. We would be very wrong indeed to extend this sense of privilege to this vast number of people, and I venture to put forward my words by way of restriction on this subject. We are wrong. Privilege is restricted and is personal to us. It is not to be extended to this vast corporation consisting of hundreds and hundreds of people. Therefore, any person who has any sense of continuity and real privilege in the world should vote against this proposal.

9.53 p.m.

There is one point in this Bill—an important point raised by the hon. Member opposite—which has really disturbed my mind very much. He has said that the provisions of this Bill will enable an English diplomat to be exempted from payment of Income Tax in respect of his property in this country. To that proposition, I could never subscribe. It seems to me, on all grounds of justice and common sense, that the idea that because a man is given an appointment of a diplomatic character and is to be sent abroad, wherever it is, and is to receive emoluments, and because he is exempted from taxation on his emoluments, the exemption should be extended to his private income in this country, makes no sense at all. I do not put myself forward as an international lawyer—[ Interruption. ] That is perhaps more modest than it ought to be. I do not think that the position is really nearly as bad as it is apprehended, and I will tell the House why. First of all, I do not think that a foreign envoy in this country gets off paying Income Tax on unearned income in this country because, as the tax is deducted at the source, he has no means of getting it back. [An HON. MEMBER: "He does."] Be that as it may, there are, no doubt, cleverer international lawyers than I am on the other side and no doubt they are right, but that is my humble view, which I can give just as much as they are entitled to give theirs. I am not quite sure—

Let me finish my sentence. I am not quite sure that the same observation applies to unearned income. It may very well be that in that respect we may not be able to render liable to tax a foreign envoy who, for instance, writes a play or earns money in that kind of way. That brings me to the point I started to make. I do not want that position to apply to an English appointment, to anyone in this country, who is translated to an office abroad in the Diplomatic Service and, by that token only, to be enabled to get off paying Income Tax in this country on his private income. How on earth it can be suggested that because a man is suddenly promoted from a private capacity in which he is liable, as we all are unfortunately, to pay Income Tax; how it can be argued that because he is suddenly translated from that sphere into one of a diplomatic field, he thereby becomes entitled to be free of Income Tax on his private income because he has had to be freed in respect of his diplomatic emoluments, I really in logic and in justice cannot see. Therefore, I do ask the Minister—[An HON. MEMBER: "Please yourself."]—I shall say what I think; there are some people who have not always the courage to say what they want to say. I am going to put it to the Minister because I was shocked—I put it as strongly as that; after all, I am a Socialist, and I was frankly shocked—when I heard the suggestion that the payment of Income Tax should be free in the way I have indicated. I ask the Minister to look at this matter again and to give the House an assurance that, when the Orders that are to be made under this legislation are made, it will be seen that that exemption is not possible.

10.0 p.m.

I do not intend to follow the hon. and learned Member for Gloucester (Mr. Turner-Samuels) but I would like to take up a remark made by the hon. Member for Gateshead (Mr. Zilliacus) about the desirability of equal treatment for members of the secretariat of the United Nations. I quite agree with his argument and I quite agree that it is desirable that there should be a certain equality of status. But it must be as well known to him as it is to me, that this is not the case at present. The right hon. Gentleman will correct me if I am wrong, but the position is that there is not equality of status, and British subjects working with the United Nations secretariat in America, are receiving smaller salaries than Americans working in similar positions there.

Unless the hon. Member has information later than mine, he is completely wrong.

I would like to hear what the right hon. Gentleman says in explanation of that.

Perhaps I can elucidate what the hon. Member means. Under the Act of 1944, under pressure of hon. Members opposite, British officials in this country were subject to Income Tax here. Perhaps that is what he is thinking of.

I am not referring to Income Tax, but to the scale of salaries and allowances. I have recently received a complaint that some foreign members of the Secretariat in America are more highly paid than the British Members. I am glad to know that that is not so.

If they are of lower rank of course they have not the same emoluments and expenses, but if they are of the same rank, they do have the same.

I am very glad to hear what the right hon. Gentleman says, but it is news to me.

The hon. Member for Luton (Mr. Warby) told us that we had been guilty of obstruction on this side of the House because in 36 minutes available to us on 21st June—of which about half was occupied by a speech of the right hon. Gentleman—we did not agree to this Measure. If that is his idea of obstruction, I very much wonder what he feels his duties are as a Member of Parliament, and whether he really feels that it is the duty of Members of Parliament to agree, in 36 minutes, to any Bill the Government may care to bring forward. I certainly could not agree to that point of view, but it is most revealing to hear it stated from the opposite side of the House. It confirms my worst impression that the psychology of the rubber stamp, is becoming more prevalent on the other side of the House.

The hon. Member, if he reads the report of what I actually said, will see that I referred to the extended time desired by hon. Members opposite for consideration of this Bill. As we have seen this evening, although certain hon. Members opposite claim that they are only opposed to certain minor points in the Bill, nevertheless a large number of speakers have been getting up to offer general opposition to a Bill, which is merely carrying out what other hon. Members have agreed are our obligations under the Charter.

I cannot see how the Opposition can be accused of obstruction because they ask for longer than 36 minutes to discuss a Bill. However, the hon. Member went on to say how pleased he was about the speed and initiative shown by the Government in bringing forward this Measure—speed in taking five months, and initiative in acting beyond the Convention they are trying to enforce in this country. I really cannot see that that is a matter for congratulation. If indeed they have been so anxious about speed, I fail to see—or at least I should have failed but for a recent event—why it was necessary to bring in this small Bill at all. It is only a short time since we were discussing the United Nations Bill, again a very small Measure.

We know that beyond this Bill it will be necessary to bring forward one or more others to implement further our undertakings to the United Nations. What is the purpose of all these little snippets of legislation? If we had been in any doubt we should have been enlightened by the proceedings at the Bournemouth Conference. There we heard the party opposite congratulating themselves on the number of Bills which were brought forward. I submit that it would be much better if the Government could now get down to it, with the famous speed of theirs, and have one Act embodying all the powers they require to fulfil our undertakings to the United Nations.

I would like to ask the right hon. Gentleman how this Bill will in practice affect the large numbers of people now in this country who are already members of the Secretariat, and what is called U.N.E.S.C.O., and one or two other such bodies? Are they at the moment not enjoying any of these privileges? Are they at the moment paying Income Tax, or are they at the moment exempt from paying it? What is the position? I hope that the right hon. Gentleman will clear up the point when he replies. It has been rightly pointed out that this Bill goes further than the Convention of the United Nations, with which it is concerned. The argument which the right hon. Gentleman put forward to justify that action was quite inconclusive. He put forward the argument that it was much simpler to do it this way, and subsequently to limit his powers, which he undertook to do, by Order in Council. That is quite the wrong way of looking at legislation. It is an argument we frequently hear from the benches opposite—"We shall not need to use all these powers, and we promise we shall not do so, but it is easier to have them all in the Bill."

There is one other point about which I should like a little more elucidation. That is, with regard to those people whom the right hon. Gentleman described as experts in a temporary capacity. They are to receive the same privileges. I should like to know a little more as to just who they are. It is not right that these privileges should be handed out very widely. On this side of the House most of us agree that members of the Secretariat of the United Nations need certain privileges in order to fulfil their functions properly, but it is essential that those privileges should be restricted as far as possible. Finally, I am glad there is one thing in the Bill which I can welcome unreservedly, that is, the decision to extend the privileges to the members of Dominion Delegations in London. I am glad that the opportunity has been taken to do that.

10.10 p.m.

Hon. Members opposite, in particular the hon. Member for Luton (Mr. Warbey), seem to be very excited at the idea that any hon. Member should venture to criticise any provision of this Bill. As I see it the issue, on the Second Reading of the Bill, is quite simple. Granted that it is necessary to confer some privileges to assist this organisation, the question is then whether the privileges outlined in this Bill are more than are necessary for the efficient functioning of the world organisation. That is, surely, a question which the House can discuss as, to some extent, a technical matter, without attempting to import the heat and prejudice which the hon. Member for Luton, who had quite clearly not read the Bill, saw fit to import into it. All hon. Members, surely, must accept the fact that privileges are, in themselves, odious, and that they should not be extended any further than is absolutely necessary for practical purposes. It is perhaps not without significance that the only hon. Member who has spoken from the other side of the House who manifestly had read the Bill—the hon. and learned Member for Gloucester (Mr. Turner-Samuels)—was unhappy about it.

There are one or two points which I am perfectly certain the right hon. Gentleman the Minister, of State had not himself appreciated when he introduced the Bill some ten days ago. For example, he appeared quite startled a few moments ago when one of my hon. Friends drew attention to the fact that the persons to be covered by the privileges under this Bill will be nominated by his own Department. If the right hon. Gentleman will look at the Act of 1944, which this Bill amends, he will see that those persons are designated by Order in Council by his Department, their names are then put in the "London Gazette" published in London, Edinburgh and Belfast and, that having been done, no one can question their inclusion in any way. If the right hon. Gentleman looks at the Bill he will be convinced that those people are to be nominated by him. The test surely is, are these privileges necessary for the working of the international organisation? That is the only question, because if they are not proved to be necessary, I am sure that hon. Members opposite would not wish to vote exemption from taxation and the law of the land to these people. After all hon. Members opposite—

On a point of Order. Is it in Order for an hon. Gentleman to put his feet right across the Bench in front of him?

It I may intervene in this somewhat domestic dispute, I would put this point to the House. The privileges are exemption from taxation and from the normal law of the land. As hon. Members opposite are in a majority in this House, they decide taxation and the law of the land, and presumably they will not wish to grant exemption from them unless it is really necessary. The right hon. Gentleman the Minister of State really made very little attempt to show that these privileges are necessary; in fact, as I recollect his speech, he did no more than establish what is not really seriously contested, that the immunities given to junior officials under Part III of the Schedule, that is to say, immunity from proceedings arising out of their official acts and immunity of their official salaries from taxation, should be given. I heard from the right hon. Gentleman no attempt to justify the infinitely greater privileges which this Bill will confer upon the senior officials.

There is one example which, so far, has not been touched upon in this Debate, and that is the fact that this Bill confers privileges not only upon the officials themselves, but upon their wives and families. It is arguable that some of those privileges are needed for the officials, but there has not been a scrap of argument to support the inclusion of their wives and children. As my hon. Friend the Member for North—wich (Mr. J. Foster) pointed out, there being no definition of the term "children" in the Bill, it is a little difficult to know how far that privilege goes. I took the trouble to consult Halsbury's "Laws of England" upon the interpretation given under different statutes to the use of the word "children" where no express definition is laid down. The House may be interested to hear the result. The word "child" includes, besides a son and daughter, a grandson and granddaughter, step-son and step-daughter, an adopted person, a legitimated person and illegitimate person. Is it seriously suggested that the working of the great United Nations organisation will be prejudiced, if the comparatively remote dependants, that are included in that list, of its senior officials are not given complete exemption from taxation and the normal law of the land? I do not know whether that is going to be seriously contended. If so, the argument will be interesting; but if that is not, surely the right hon. Gentleman can give some undertaking, even at this stage, to the House that, if he gets the Second Reading, he will agree to include, in Committee, some limitation of the definition in the Bill of the word "children."

I do not want to verge on what has been referred to as "the fantastic," but if the Bill stands as it is now drafted there is, at any rate, this possibility. These vast numbers of dependants of foreign and British representatives being exempted from normal taxation, it will be possible to envisage the wise solicitor advising one of his clients about the preservation of his fortune from the depredations of the Chancellor of the Exchequer, "My dear fellow, your only hope is to marry the daughter of the medical director of U.N.R.R.A." I am perfectly certain that the right hon. Gentleman the Minister of State does not want to create this considerable class of privileged persons. Granted the possibility that one of these senior officials of the organisation might be perturbed, were his son charged with careless driving, it is, surely, inconceivable that he could be seriously upset, or that his work would be disturbed, because the police were after his grandson, or relatives less legitimately connected with him. I do hope we shall hear something from the right hon. Gentleman on that point.

There are one or two other questions I should like to ask. Would it be possible for these immunities to cover people attached in a temporary or advisory capacity to organs of the United Nations? If so, the possibilities of abuse are substantial. Persons of considerable substance may think it advisable to do a short term as advisors on economic affairs in one of the subsidiaries of the United Nations organisation, if remunerated for a year by exemption from taxation. I think the. House is entitled to be told how far these immunities will go. The right hon. Gentleman—I am sure, quite unintentionally—did mislead the House in his Second Reading speech, when he suggested that only one Englishman among the Assistant-Secretary-Generals of the United Nations organisation itself will be covered by this Bill; because, obviously, the senior officials of British nationality on most of the subsidiary organisations could be covered. For example, there is a Member of this House who has been quoted in this Debate. But I should like the right hon. Gentleman to go further, and tell us whether the people to be exempted under this Bill are only to be those permanently on the staff of one or another of these international organs.

There is only one other matter with which I need trouble the House. Like other hon. Members on this side, I am trying to probe into the exact legal consequences of this Measure. I am not concerned in any way to hamper the granting of any legitimate privileges to this organisation. But I do say this to the right hon. Gentleman. He is going to carry the privileges he desires to give beyond the Convention: and he has not seen fit to tell the House on what principle he has brought in that extension. I should like the right hon. Gentleman to tell us why he has seen fit to extend these privileges not only beyond the Convention, but beyond common sense and the necessities of the situation. I hope that he will also tell the House on what principle these extensions have been granted. I hope that the right hon. Gentleman, as he manifestly did not know them on 21st May, has since applied his mind to the precise provisions of the Bill. If he has done so, I am certain that he will have no difficulty in giving an answer to the questions which have come from both sides of the House.

10.21 p.m.

I claim that the attitude of some hon. Members opposite in regard to the history of this Bill is based on a complete misapprehension. Having been present during the Debates on the previous Act—the Act which we are now amending—it appears to me that hon. Members opposite are not very conversant with the position. But before I come to that, and before I ask the right hon. Gentleman certain questions which were certainly not answered by him in his earlier speech, I should like to comment on one or two things that have been said in this Debate. The hon. Member for Luton (Mr. War- bey) asked, in a very eloquent speech, whether it was the contention of hon. Members on this side of the House that while we, as Members of Parliament, enjoy great privileges, these people who are working under U.N.O. should not enjoy similar privileges. I have never heard of a greater antithesis. I have been a Member of the Select Committee of Privileges of this House. Without giving away any secrets of that august body, and referring only to reports which have been published, may I state that it cannot be argued that the privileges of Members of this House are of anything more than a narrow compass? It may be said without offence that they have been gradually narrowed down from precedent to precedent.

What are the privileges to which the hon. Member for Luton was referring with such enthusiasm and emotion that one almost sought a handkerchief to wipe one's eyes? He was imbued with a desire to see justice done to a worthy body of men. What are these privileges referred to by the hon. Member who belongs to a party, which has disagreed with privilege on platform after platform? The privileges conferred under this Bill will apply to an enormous number of people and not merely to U.N.O. The hon. Member did not do his argument justice. This Bill does not refer to U.N.O., but to other organisations as well. But what are the privileges which have been mentioned in the Debate? Let me repeat them for the benefit of those who do not know. They include Customs privileges, and freedom from Income Tax and similar freedom for families. Does any hon. Member opposite seriously suggest that there is any comparison between the freedom conferred by this Bill upon this mass of people, and the privileges of a Member of Parliament? That is the whole argument of the hon. Member opposite; he based his argument on it. He said that we were prepared to retain our privileges as Members of Parliament, and yet were not prepared to give these privileges to others. The hon. Member for North-wich (Mr. J. Foster) pointed out, and no speaker on the other side has attempted to controvert him, that in the case of an ordinary diplomatic representative of a Power accredited to this country, our Government can say privately to the foreign Government concerned—as anyone who has had experience of administration knows, including hon. Members opposite who have been in administrative jobs during the war—"This man is persona non grata to us. He has done certain things with which we do not approve, and we shall be glad if you will remove him." But hon. Gentlemen opposite must agree that it is going to be infinitely more difficult to do so in the case of these international organisations. One is put in a most awkward position.

This Bill—although I do not suggest that this is the intention of the Government or their supporters—opens the door to rascality of all kinds, by enabling people, wholly unsuited, to be appointed to a position of diplomatic privilege. That was the argument used by my hon. Friends. Hon. Members opposite, holding great positions in the law courts and of great forensic ability, have not attempted to answer the points put from this side. Anyone who has heard hon. Members opposite, particularly the hon. Member for Luton, speaking tonight, would have supposed that this was Tory obstruction of the Bill. Does the hon. Member realise—he probably reads HANSARD—that the great opponent of the 1944 Bill, a much milder Bill than this one, was the present Minister of Health? And the right hon. Gentleman was not the only one. Several hon. Members opposite got up and expressed grave doubts about that Bill. A most respected Member of this House, no longer among us—Mr. Tinker, then Member for Leigh—said:

Mr. Tinker: in extenso what the Minister of Health said on that occasion, but I am surprised that he is not here tonight to hear the Debate.

It would be interesting if the right hon. Gentleman would quote in extenso from the speech of the Minister of Health on that occasion. He would discover that the Minister of Health made the point that there was no corporate international body to which these people could be responsible; whereas now the situation has changed, and we have an international authority.

I heard every word of the speech of the Minister of Health on that occasion and it was nothing of the kind. [HON. MEMBERS: "Read it."] Why should I read it because hon. Gentlemen opposite refuse to accept the information of someone who heard every word of the speech? Some hon. Gentlemen may not have been in the House, but why should I bore the House, at the request of some hon. Members, by reading the whole speech? Everybody who has read that speech knows perfectly well that the right hon. Gentleman the present Minister of Health was opposed to the Bill. There is no question about it. [ Laughter. ] I will deal with something else which hon. Gentlemen opposite—with whom laughter is always a substitute for argument—do not appear to understand. This may appear to them to be a great joke, but the Minister of Health did not regard it as a joke. He used wounding phrases about the action of the Government in bringing in that Bill. As a result of the right hon. Gentleman's action—and he was a most effective opponent of the late Government—the Bill was amended. As a direct result of his action the Bill was amended in Committee, and the objections made by those in opposition to the Measure were largely met. The right hon. Gentleman's appeal having been met in that way, as a result of opposition in the House, the Government now bring in a Bill which greatly extends the power conferred upon the Government and upon persons who come under this Bill.

For instance, one of the objections taken to the 1944 Measure was that the powers of the Foreign Secretary were practically unlimited, and the scope of the amenities which he could grant under the Bill were quite undefined. The immunities assured were of three kinds. Under this Bill—and I would ask the right hon. Gentleman to deny it if I am wrong—the scope of all three classes of immunities has been widened. When Sir Herbert Williams and others opposed the Bill earlier, it was damped down, so to speak, but the Government have now gone much farther than the original Measure. The organisation can import or restrict any publication and can avail itself of Press rates for telegraphing matter for publication. Why should the organisation be given this privilege? In 1944, the Government, because of pressure from the House, deliberately excluded British subjects normally resident here. Now they are included. The families of high officers and Government representatives are given immunity. Last, but not least, the duration of the original Act was limited to five years. In the new Bill, there is no such limitation. All these things go beyond the necessity of the case as I see ti. It is far from being true, as the hon. Member for Luton said, that opposition has always come from this side. That is not so. But this Bill goes beyond the Convention; we have had no explanation of this from the Government and I hope we shall get one.

I have only one or two other observations to make, and they include a reference to the position of Members of this House. I make no attack on the hon. Member for the Scottish Universities (Sir J. Boyd Orr), but his case should have been mentioned by the right hon. Gentleman. He is a Member of this House, and he is a scientist of distinction, and if there is any blame for any improper constitutional proceeding in connection with his case, it rests with the Government. If I am wrong, I hope I shall be corrected, but I understand the hon. Member receives £4,000 a year as salary and £2,000 a year as expenses. Am I right in thinking that both these sums are free of Income Tax in America? If so, I can only say he is in a better position than any Minister of the Crown No Minister of the Crown in this country receives £6,000 a year—[ Interruption. ] Hon. Members may think that this is amusing, but I repeat for their benefit the position of the hon. Member for the Scottish Universities. He receives, so I understand, £6,000 a year free of Income Tax, paid in Washington. In order to enjoy that in England, he would need, I think, an income of £200,000 a year. Why should he enjoy a higher salary than any paid to any Minister of the Crown in this country? I would like to ask this question, Does he receive his Parliamentary salary as well? Why should a Member of this House, in peace time, be given dip- lomatic privileges and be paid a munificent salary to keep away from this House? The hon. Member has got £6,000 a year to represent this country in Washington [HON. MEMBERS: "NO."] Well, to represent this organisation in Washington. No. hon. Gentleman, on this side, and, to do hon. Members opposite justice, no hon. Member opposite, would attempt to say this is a justifiable state of affairs.

Has the noble Lord given this hon. Member notice of this somewhat vicious personal attack?

It is not a question of a vicious attack; it is a question of bringing out the facts about an hon. Member of this House, and if the hon. Gentleman is so ignorant as to think that, on a Bill affecting another Member of this House, it is necessary to give notice, I can only say I have an even lower opinion of his intelligence than I had. This is the first case in peace time, so far as I know, of an hon. Member enjoying the dual advantage of diplomatic privilege and the privileges of a Member of this House. When a future "Erskine May" comes to be written, I believe a special page will be given to the hon. Member for the Scottish Universities. I am sure the only Communist Member of the House thoroughly approves of the situation, because this is exactly what they do for the commissars in Russia.

I would like to see the abolition of some of the privileges hitherto enjoyed, but I would have liked diplomatic immunity myself on many occasions.

I must not be led away from the Bill, but may I say, on personal grounds, that if and when a Communist Government is established in this country, I hope the hon. Gentleman will be the highest paid commissar in it. I ask the right hon. Gentleman the Minister to answer this point which I put about the hon. Member for the Scottish Universities. The blame rests not with the hon. Member himself but with the Government for having appointed him. I hope we shall have a very full explanation. We have had a certain amount of interruption, to which nobody objects; we have had, on the whole, a good-humoured Debate, though, on looking at hon. Members opposite, and also listening to their speeches, I have wondered why there was such a spirit of facetiousness. Perhaps the reason is that hon. Members opposite said to themselves "What do the Opposition think we came to this House for? Cannot they realise we came here to give jobs to the worth-while and the worthy, especially if they are Socialists? They must be mad if they do not think that that is our job. Thank heaven, we are in office for pelf and power."

10.40 p.m.

I can only take part in this Debate again with your permission, Mr. Speaker, and that of the House, which I hope will be given to me. I begin by answering one or two questions which have been put to me tonight. First, I was asked why, if full diplomatic immunities are only to be given to one man, or a small number of people, is it necessary to have such wide powers in this Bill? Well, under the Convention, rights and immunities are given to three classes: Government representatives to the Assembly and Councils and to other international conferences under the United Nations; international officials of higher rank and of subordinate rank; and to experts on international commissions of the United Nations. The immunities vary in each case and if we had tried to put all of them into the Bill, we should have had a Bill which would have been a good deal longer, a good deal more complicated than the Convention itself, and we should have had to spend a much longer time here debating it, and with no advantage of any kind. And we should have had a rigid system which it would have been extremely difficult to alter, if in fact, it were desirable to make alterations. Therefore we chose this method. As the House knows, nothing can be done under the Bill without an Order in Council, nothing at all. Either House of Parliament can destroy an Order in Council by a Resolution, and therefore Parliament remains supreme. For that reason I am sure the House will accept our method. I was asked about what rights the staff of U.N.E.S.C.O. have. By an Order in Council, made under the Act of 1944 they have certain rights which the hon. Member who raised the point can see for himself if he will look it up. Those rights will, in due course, be consolidated; for the present they remain unchanged. I was also asked by the right hon. Member for Horsham (Earl Winterton) about the duration of the Convention. In 1944, when the original Act was passed, the organisations envisaged were U.N.R.R.A., the European Transport Organisation— which the noble Lord does not like to be called E.C.I.T O. They were mainly temporary organisations. We are now dealing with the United Nations, with long-term organisations for long-term purposes. It would be entirely inappropriate, as our method of carrying out an international Convention which has no time limit, to insert a time limit of five years, and the Government do not propose to do it.

A question has also been asked about the hon. Member for the Scottish Universities (Sir J. Boyd Orr) and why he has privileges. H.M. Government did not choose the hon. Member for his present post; he was chosen by the Executive Board of the Food and Agriculture Organisation. His constituents regarded it—and I think most hon. Members of this House regard it—as a very great honour that he was so chosen. So far as I understand, none of his constituents have ever suggested that he should resign his seat in the House. In any case, it is a matter between him and them, and until they act, it is not for us to do anything about it.

Do I understand the astonishing doctrine that has just come from the Treasury Bench to be that a Member of Parliament who is absent from his duties should be paid for being absent from those duties, and it is no business of the Government, who have at any rate a conditional responsibility for it?

We have no conditional responsibility for it. We did not even nominate him as a candidate; he was nominated by representatives of other countries.

I wish to correct the impression that the right hon. Gentleman has given. A very large number of the hon. Member's constituents did suggest it to him, and he rejected the idea.

In any case, I am quite sure it is not for me to intervene between him and them tonight.

Does the right hon. Gentleman think it right that he should enjoy £1,000 a year as a Member of Parliament free of tax?

I will give the hon. Member full satisfaction about the subject of taxation a little, later.

What can the unfortunate constituents of the hon. Member for the Scottish Universities do in order to show that they do not wish him to be their Member of Parliament?

On a point of Order. This is an attack on an outstanding, great Scotsman, and I should not have risen but for the fact that the hon. and gallant Member for East Renfrew (Major Lloyd), who pretends to be a great Scotsman, said that many of the constituents of the hon. Member for the Scottish Universities (Sir J. Boyd Orr) desired him to retire. The vast majority of the hon. Member's constituents were, in fact, honoured by his appointment.

I now come to the main principles of the Bill with which we are concerned.

Why does not the noble Lord have the decency to withdraw?

Perhaps it would be as well if hon. Members allowed the right hon. Gentleman to get on with his speech.

Why did the Chair allow the attack on the hon. Member for the Scottish Universities?

The Chair has not allowed any attack on the hon. Member for the Scottish Universities (Sir J. Boyd Orr). The Chair knows a great deal more about the conditions than, perhaps, anybody else in this House.

I come now to the main principles of the Bill with which we are concerned. In the Debate two years ago, which the noble Lord remembers so well that he knows it by heart without refreshing his memory by reading it again, some very extravagant things were said. I remember Sir Herbert Williams saying that, of course, the people who belonged to the staffs of these international organisations were not diplomats; they were more like traders. I do not know why he looked down on traders. It was said that the Act would put a whole crowd of people outside the law. It was said that there would be hundreds of them. One hon. Member estimated the figure at 1,000. It was also said that they would have all the petrol they wanted, all the food they wanted, that they could commit crimes freely, without going to court, and I do not know what. One hon. Member said he thought that any country which wanted a good propaganda service here should use that Act in order to obtain diplomatic immunity for its publicity agents. Any absurdity was good enough to put up. I had hoped that the speeches by the two very distinguished Members of the last Government, the then Attorney-General, Sir Donald Somervell, and the right hon. Member for South Kensington (Mr. Law) had blown up a good deal of that nonsense. I had hoped that they had dispelled the ignorance of the facts and the misunderstanding which then obtained.

How many people have, in fact, been covered by these privileges under the 1944 Act since it came into operation?

I cannot tell the hon. and learned Member the number, but I can assure him it is very small. If he will ask me on the Committee stage, I will certainly give him the figures.

If the right hon. Member does not know the number, he is incorrect in suggesting that the number mentioned in that Debate is ridiculous.

What I was saying was that people said that a large mass of people would be put outside the law, which is a different thing. I listened with great attention to both the speeches made by the hon. and learned Member for Daventry (Mr. Manningham-Buller)—

The hon. and learned Member made a very different speech on 21st June from that which he made today. He had second thoughts. Today he cooed like a dove and asked us questions. Last time he was in regular "Arcos" form. The hon. and gallant Gentleman the Member for Windsor (Major Mott-Radclyffe) and the noble Lord the Member for South Dorset (Viscount Hinchingbrooke) have today done back to Arcos standards. The speech which the hon. and learned Gentleman the Member for Daventry (Mr. Manningham-Buller) made on 21st June is very present in my mind. He based his case on two propositions. Firstly, he said that diplomatic immunities gave privileges of a most extraordinary and objectionable kind. Secondly, he asserted that the purpose of the Bill was to allow the Secretary of State, by granting these immunities to large numbers of people, British subjects—most of whom, of course, would be Socialists—to find "jobs for the boys"—that was the hon. and learned Member's expression. He made a speech against privileges and tonight we have been assured from the benches opposite that privilege is odious to them. We are very glad to hear it. The hon. and learned Gentleman made a speech suitable to the election hustings, which he mentioned, and of which he spoke with such understandable bitterness. He made a speech in which he repeated, without exception, every single mistake made in the Debate of 1944—every one. He gave an account of diplomatic immunities which left me absolutely amazed. Discussing the immunities which might be granted to British subjects under this Bill, he said:

"Not only will those British subjects be above the law ….. They will live in this country rent free, tax free and free from legal process."

If the hon. and learned Member will look up HANSARD he will see it says "rent free."

"Food cuts will mean nothing to them. To them our rationing system will not apply. They will be able to get their houses repaired and redecorated without licences. They will be able to buy all their clothes without coupons, and to them Purchase Tax will have no meaning. Indeed, it will be a delightful, carefree existence, if one secures employment in one of these higher offices, an existence not subject to Paul Prys, agents provocateurs, inspectors, and form fillers.—[OFFICIAL REPORT. 21st June, 1946; Vol. 424, c. 651.]

Very enjoyable. This is a matter of law, and the hon. and learned Gentleman is a King's Counsel. He really ought to do a little better than that. Of course diplomatic persons are not above the law. They are subject to the law, with a duty to obey it. They are free from process in courts, and for very good reasons, which were conclusively explained by the then Attorney-General and the right hon. Gentleman the Member for South Kensington—reasons which every hon. Member of the House accepted. The reasons are unanswerable, and that is why the hon. and learned Member is now accepting freedom from legal process in this Bill. He has never objected to it in respect of anyone; he accepts it.

The right hon. Gentleman really should pay a little more attention to what I said. I asked this question: Why should the higher officials have complete immunity from suit and legal process where the junior officials, under Part III of the Schedule, only have it in the performance of their duties?

The reason diplomats have it was explained by the right hon. Gentleman the Member for South Kensington in that Debate, and conclusively explained. Every hon. Member of the House accepts it. No one would challenge it for any diplomat in London. I will explain later why it is also required for the higher officials of international organisations.

The hon. and learned Gentleman said they were rent free. [ Interruption. ] Well, it is in HANSARD. That is a complete illusion. They pay their rent, just as he and I do. He said they were tax free. That is untrue. Diplomats are not taxed on their official salaries. They are not taxed on private income which comes from investments abroad. They probably would not be taxed on that if they were private citizens.

The right hon. Gentleman must be fair. I said that the people who would be tax free under this Bill would be the higher officials. I was not talking about diplomats. If one looks at Part II of the Schedule one will see that there is exemption from all rates and taxation.

These are the exact privileges which diplomatic immunity gives and which these higher officials will enjoy. They are free from taxation on their official salaries, and on income received from abroad They are not free from taxation, with all respect to the hon. Member who spoke so learnedly, on investments and shares held in this country.

Is the right hon. Gentleman, going to say that the diplomatic holder of War Loan is taxed on the income from it?

That is what I am advised by the Treaty Department of the Foreign Office, and I have inquired tonight. They pay petrol tax, and they pay Purchase Tax. Now we come to rates. Diplomats, and these international officials, pay full rates on their private residences, and half rates on their embassies. They are subject to food rationing and if, because they have the weary duty of a good deal of diplomatic entertaining they are by courtesy given extra rations, that is nothing whatever to do with this Bill, or with the law. It is a pure courtesy which was, after all, established by Governments to which members of the party opposite belonged, and which evidently was right and proper. They are not freed from the necessity to have clothing coupons; not at all. They must have coupons as other people do. They cannot get their houses repaired, or decorated, without licences, exactly as other people are required to have licences. No builder will do anything for them unless the same permit is produced by them as any member of this House has to produce. I submit that the whole description given by the hon. Member of what the immunity gives to these men is utterly fallacious from first to last.

It was not so strange as the irresponsible remarks he made about "jobs for the boys." He asserted that the Secretary of State is going to be able to appoint the boys to these happy, carefree, jobs, where they will live lives of ease and luxury and privilege; and he implied that their would be a great number of them. How many does he assume that there are? He ought to know. All the relevant documents have been published. The answer is in the Bill. How many does he think there are? Is it 500?

If His Majesty's Government are now going to call upon Members of the Opposition to supply information which should be available to the Government, the Government are declaring themselves to be even more incompetent than I suspected.

Thence the answer, and I am just going to give it. I wondered, however, how many the hon. Member thought there might be, when he talked about "jobs for the boys." I wanted to know how many boys in our party could hope for these jobs. I do not ask him to give any exact estimate. Will he choose between 500, 50, and five?

I will give the hon. and learned Member the answer. It is in the Bill. The answer is—none at all.

They had better send for the right hon. Gentleman the Member for Woodford (Mr. Churchill).

The hon. Member for Kingston upon Thames (Mr. Boyd-Carpenter) asked, in advance of my reply, how any such thing as this could possibly be said. He said that the Foreign Office makes the list of those who have such immunity. Of course, they make a list of those who are appointed by other people, and have it published in order that they may be known in this country. This Bill applies to three categories of people—delegates to the United Nations and other international conferences under the United Nations who are appointed by foreign Governments—not by the British Government, but by foreign and Dominion Governments—and, as an hon. Member opposite said, everybody is in agreement about the Dominions. It applies secondly to international officials appointed by the Secretary-General It applies, thirdly, to—

We want to get at the truth. Are none of these international officials British?

I am not at all surprised that the conception of an inter- national official is unfamiliar to the noble Lord. These international officers are appointed by the Secretary-General, who is solely responsible for their appointment, and, under the Charter, the Government are expressly prevented from attempting to influence them in any way, and the Government have never dreamed of attempting any such thing. [HON. MEMBERS: "Withdraw."] Is the noble Lord suggesting that the Conservative Governments between the war influenced the Secretary-General at Geneva in the appointment of British officials?

On a point of Order. Persistently, the noble Lord says that this affects our pockets, although my right hon. Friend has made it quite clear that it has nothing to do with the Government at all. Should not the noble Lord refrain from uttering these persistent calumnies?

The right hon. Gentleman gave way to the noble Lord and, therefore, the noble Lord is entitled to a reply.

My point is that he has persistently challenged the honesty of this party. The noble Lord is saying that—[ Interruption. ] The noble Lord may think this is funny, but the country will not. My point of Order is this: Should not the noble Lord be asked to withdraw these remarks?

After all, everybody can say what they like, provided it is within Order, and then one is responsible for what one has said. The noble Lord is making an interruption and he is responsible for that.

The hon. Member who has just put a point of Order to you, Mr. Speaker, accused the noble Lord of telling lies. Cannot you, Mr. Speaker, ask the hon. Member to withdraw that?

There is no accusation against the noble Lord of telling lies. I never heard anything of the kind.

May I now be permitted to deal with the question which the right hon. Gentleman himself addressed to me? He asked if it was conceivable that any Government would attempt to influence the League of Nations to appoint any of these nationals. Of course, the answer is they would do so. They have a perfect right to do so and they have a perfect right to be consulted. Nobody knows that better than the right hon. Gentleman.

I am sorry the noble Lord should have given that answer. I hope it will not go out to the world as the view of this House. That was the right asserted by Signor Mussolini, and, for the brief period during which Nazi Germany was a member of the League, by Herr Hitler, but never by loyal members of the League, and certainly not—I have an intimate knowledge of the facts—by any Conservative Government of that time. Perhaps I need only point to the fact that my hon. Friend the Member for Gateshead (Mr. Zilliacus) was a member of the Secretariat. The Secretary of State only appoints people to act as delegates of the United Kingdom on different bodies. Under this Bill all delegates of the United Kingdom are expressly excluded from its terms. From what I have said, it is clear that the whole case made by the hon. and learned Member who opened this Debate has collapsed like a house of cards.

I had prepared, expecting that the points would be put, in view of the tone in which this Debate opened two weeks ago, notes about some of the changes—there are not many—which are introduced by this Bill in the Act of 1944. Most of the notes, I am happy to say, are quite unnecessary, because hon. Members opposite accept practically all that the Bill contains. We can have it out in the Committee stage, but hon. Members will find it is so, when they read their own speeches. There is the question of immunities—Article IV of the Convention and the relevant parts of this Bill—for representatives of Governments to conferences. In fact, this Bill restricts the immunities allowed by the Act of 1944. No hon. Member opposite challenged any of that. There is the question of the subordinate officials of the United Nations. The only change made in regard to them is that British international officials are now not made subject to Income Tax if they live in this country. They are not now under the injustice, as I think it, which was imposed on them at the demand of hon. Members opposite under the Act of 1944. They are now put on an equal footing with their colleagues of other nationalities.

Hon. Members have assured me to night, including the hon. and learned Member for Daventry, that they are in agreement about that, so there is no dispute there. Then there is the question of experts of the United Nations Commissions. I have been asked who they are. They are people who were appointed in an international capacity, responsible to no national government, on United Nations Commissions of different kinds. There will not be a very great number, but there will be some. The most important case will be Commissions of Inquiry into international disputes. Can it be doubted that if a Commission of Inquiry into an international dispute were to come to this country, the experts ought to have immunities? Nobody on the opposite side of the House doubts it. It has not been raised. Nobody has challenged that for a moment. Thus there remain only the immunities given to the organization itself and the immunities given to the higher officers of international organisations—

Of course. I was asked why should the documents of the United Nations not be taxed by customs duties?

I hope so, of course. I was asked, Why should they not be taxed? I put the question, Why should they be taxed? There is a very good reason why they should not. The reason is that we desire that the documents of these organisations should penetrate, as easily and as widely as possible, into all the countries of the world. The more the knowledge of them exists, and the more their documents are disseminated, the more chances are there that they will succeed. They depend for their strength on informed public opinion. I have been asked why they should have the concession of Press rates for telegraphing matter for publication. Again, I would ask, "Why not?" The reason is just the same. We do not want lying national propaganda left free to distort the facts at a time of crisis—we want the truth to reach all the nations of the world. Incidentally, we want to save the money of the British taxpayer; our contribution to the United Nations can be reduced by enabling the true facts to be sent freely at Press rates anywhere throughout the world. I am advised that the best way to carry out this desirable purpose is to insert this provision in the Bill; and that we propose to do.

Now I come to the higher British officials; and I would say that if they are to have diplomatic immunities it is, in our considered opinion and judgment, because they ought to have it—[ Interruption. ] Suppose one of these officials came to reside in London. It is a most improbable contingency, but let us assume that. He would be engaged in international work, and he would be mixing, if I may use the terms, in international circles. We think that these most responsible people, who are carrying heavy responsibilities for fifty-one nations and fifty-one governments of the world, ought not to be in a lower position than the representatives of the Powers, great and small, who come to London. They ought not to be inferior in status in any way.

It is therefore desirable that we should do this, and we are going to do it. And if there is a good case for giving these full diplomatic immunities to national representatives, to ensure the independence of their action on behalf of the interests of their governments, there is an equally good case for holding that these international officials should also have the same protection, the same guarantees for their full independence of action. It is, I think, particularly important that a British international official in London should be as independent of the British Government as any international official of another nationally—[ Interruption. ] Yes. that is what we think, and that was the emphatic wish of those who drew up this Convention in January last.

Does the right hon. Gentleman think that it is right for an official of the United Nations who comes to this country for, say, three months' leave and engages in publishing libels, or has a motor accident, or murders somebody—[ Interruption. ] Yes, that might happen. I ask, Is it right that he should be exempt from Income Tax on all his property abroad? In the case of diplomats, they are only exempted in the country to which they are accredited.

If it were not so late, I would gladly give an answer to the hon. Member, including his point about a motor accident. But no diplomat is now really in a privileged position in regard to motor accidents. By an Assembly Resolution, any and every person having these immunities will require to have a third party insurance, and as for going to court, we have a system which has worked perfectly well. In any case, we are confident that the courts can deal with dangerous driving. But apart from that there is provision in the Bill that the Secretary-General can waive, and not only can he waive, but he is under a duty to waive the immunity. Is the hon. Gentleman suggesting he would not do so, if there was a case of real abuse. We have had much experience of these things; we have had 20 years' experience of the League of Nations system, and we have had a much longer experience of diplomatic immunity and they really do not give all this trouble or lead to the abuse that is suggested.

Now I come to the point of numbers: how many people are going to have these immunities, which are to be given to higher officials on the same footing as diplomatic envoys? The noble Lord has said "a mass of people." Well, let us look at it. First there is the United Nations organisation proper. There is the Secretary-General and the Assistant Secretaries-General, of whom one may be British, certainly not more. He will be resident almost certainly in the United States or else in the European seat of the United Nations. That certainly will not be in this country, but on the Continent. Then there is U.N.R.R.A. U.N.R.R.A. might have six, of whom one might be British. In the 1944 Act the British official did not get these immunities; in this Bill he would, and I think it would be only right. There is Food and Agriculture—the hon. Member for the Scottish Universities. Certainly, there will not be more than one in the Food and Agricultural Organisation, and he is resident in the United States. There is the International Bank. There cannot be more than one then and he will be resident in the United States. There is the Transport Organisation, and so far as we know, there is no British member. If there is, he will be resident in Paris. There is the European Coal Organisation. While my sleuths have not been able to track down the Coal Organisation tonight, I can say that there certainly will not be more than the one British member, having these immunities, who is at present working in London. The services he is rendering are very notable indeed, and I think it is right that he should have this privilege. It is quite clear that the seats of these organisations are not going to be in this country, they will be mainly at the seat of the United Nations; that is to say, in the United States of America—perhaps at Greenwich, Connecticut, or else at its European seat on the Continent. It is quite plain, therefore, that the number of officials in this country who will qualify for this will be almost infinitesimally small.

The wives and families we want to put on the same footing as those of diplomatic envoys, and that is why wives and families appear here, and we, are determined that they shall be in that relation. I do not believe any hon. Member would be able to make a case against it.

This is a good Bill. It is an essential Bill to enable us to carry out our obligations under the Charter and under the Convention. It was unanimously adopted by the 51 Governments at the Assembly in January. It has safeguards far beyond anything dreamt of in the past. I am not going to elaborate them now, for the hon. Members know what they are. In my view, there is no practical possibility of abuse.

Before the right hon. Gentleman leaves the question of numbers with which he was dealing, could he give the House some idea of how the numbers who will have immunity under this Bill compare with the number who enjoyed the great privilege in the days of George IV?

I was about to end by saying that we regard the independence of international officials and the right of delegates to the United Nations conferences as of the highest importance in the interests of these new international institutions. Further international organisations will be created as necessity dictates. More international officials will have these privileges. I hope they will, be- cause I hope that the organisations will succeed. The success of these organisations is the only alternative to the privilege of being destroyed by atomic war.

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

The House divided: Ayes, 243; Noes 91.

Division No. 231.

AYES.

[11.20 p.m.

Adams, Richard (Balham)

Gibbins, J.

Mort, D. L.

Adams, W. T. (Hammersmith, South)

Gibson, C. W.

Murray, J. D.

Allen, A. C. (Bosworth)

Glanville, J. E. (Consett)

Neal, H. (Claycross)

Allen, Scholefield (Crewe)

Gordon-Walker, P. C.

Nicholls, H. R. (Stratford)

Anderson, F. (Whitehaven)

Greenwood, Rt. Hon. A. (Wakefield)

Noel-Baker, Capt. F. E. (Brentford)

Attewell, H. C.

Greenwood, A. W. J. (Heywood)

Noel-Baker, Rt. Hon. P. J. (Derby)

Awbery, S. S.

Grenfell, D. R.

Noel-Buxton, Lady

Ayrton Gould, Mrs. B.

Grey, C. F.

O'Brien, T.

Bacon, Miss A.

Griffiths, D. (Rother Valley)

Oldfield, W. H.

Balfour, A.

Griffiths, Rt. Hon. J. (Llanelly)

Paget, R. T.

Barton, C.

Griffiths, Capt. W. D. (Moss Side)

Palmer, A. M. F.

Bechervaise, A. E.

Gunter, Capt. R. J.

Pargiter, G. A.

Bellenger, F. J.

Hale, Leslie

Parkin, Flt.-Lieut. B. T.

Benson, G.

Hall, W. G. (Colne Valley)

Peart, Capt. T. F.

Berry, H.

Hamilton, Lieut.-Col. R.

Perrins, W.

Bing, G. H. C.

Hannan, W. (Maryhill)

Platts-Mills, J. F. F.

Binns, J.

Hardy, E. A.

Poole, Major Cecil (Lichfield)

Blackburn, A. R.

Harrison, J.

Porter, E. (Warrington)

Boardman, H.

Hastings, Dr. Somerville

Porter, G. (Leeds)

Bowden, Flg.-Offr. H. W.

Haworth, J.

Pritt, D. N.

Braddock Mrs. E. M. (L'pl, Exch'ge)

Henderson, A. (Kingswinford)

Proctor, W. T.

Braddock, T. (Mitcham)

Hobson, C. R.

Pursey, Cmdr. H.

Brooks, T. J. (Rothwell)

Holman, P.

Randall, H. E.

Brown, George (Belper)

Holmes, H. E. (Hemsworth)

Ranger, J.

Brown, T. J. (Ince)

Hudson, J. H. (Ealing, W.)

Rankin, J.

Burden, T. W.

Hughes, Emrys (S. Ayr)

Reid, T. (Swindon)

Butler, H. W. (Hackney, S.)

Hughes, Hector (Aberdeen, N.)

Rhodes, H.

Callaghan, James

Hynd, H. (Hackney, C.)

Robens, A.

Champion, A. J.

Irving, W. J.

Roberts, Goronwy (Caernarvonshire)

Clitherew, Dr. R.

Isaacs, Rt. Hon. G. A.

Rogers, G. H. R.

Cluse, W. S.

Janner, B.

Royle, C.

Cobb, F. A.

Jeger, G. (Winchester)

Scollan, T.

Cocks, F. S.

Jeger, Dr. S. W. (St. Pancras, S.E.)

Shackleton, Wing-Cdr. E. A. A.

Coldrick, W.

Jones, D. T. (Hartlepools)

Sharp, Lt.-Col. G. M.

Collindridge, F.

Jones, J. H. (Bolton)

Shawcross, C. N. (Widnes)

Collins, V. J.

Jones, P. Asterley (Hitchin)

Simmons, C. J.

Colman, Miss G. M.

Keenan, W.

Skeffington, A. M.

Comyns, Dr. L.

Kenyon, C.

Skinnard, F. W.

Cooper, Wing-Comdr. G.

Kinghorn, Sqn.-Ldr. E.

Smith, Capt. C. (Colchester)

Corbet, Mrs. F. K. (Camb'well, N.W.)

Kinley, J.

Smith, S. H. (Hull, S.W.)

Corlett, Dr. J.

Kirby, B. V.

Smith, T. (Normanton)

Crossman, R. H. S.

Kirkwood, D.

Snow, Capt J. W.

Daggar, G.

Lang, G.

Solley, L. J.

Daines, P.

Lavers, S.

Sorensen, R. W.

Davies, Edward (Burslem)

Lee, F. (Hulme)

Soskice, Maj. Sir. F.

Davies, Ernest (Enfield)

Lewis, A. W. J. (Upton)

Stamford, W.

Davies, Harold (Leek)

Lewis, T. (Southampton)

Steele, T.

Davies, Haydn (St. Pancras, S.W.)

Lindgren, G. S.

Stewart, Capt. Michael (Fulham, E.)

de Freitas, Geoffrey

Lipson, D. L.

Swingler, S.

Diamond, J.

Logan, D. G.

Symonds, Maj. A. L.

Dodds, N. N.

Lyne, A. W.

Taylor, H. B. (Mansfield)

Donovan, T.

McAdam, W.

Taylor, R. J. (Morpeth)

Driberg, T. E. N.

McAllister, G.

Thomas, I. O. (Wrekin)

Dugdale, J. (W. Bromwich)

McGovern, J.

Thomas, John R. (Dover)

Dumpleton, C. W.

Mack, J. D.

Thomas, George (Cardiff)

Durbin, E. F. M.

McKay, J. (Wallsend)

Thorneycroft, H. (Clayton)

Ede, Rt. Hon. J. C.

Mackay, R. W. G. (Hull, N.W.)

Tiffany, S.

Edwards, John (Blackburn)

McKinlay, A. S.

Timmons, J.

Edwards, N. (Caerphilly)

Maclean, N. (Govan)

Titterington, M. F.

Edwards, W. J. (Whitechapel)

McLeavy, F.

Tolley, L.

Evans, E. (Lowestoft)

MacMillan, M. K. (Western Isles)

Tomlinson, Rt. Hon. G.

Evans, J. (Ogmore)

Mallalieu, J. P. W.

Turner-Samuels, M.

Evans, S. N. (Wednesbury)

Mann, Mrs. J.

Ungoed-Thomas, L.

Ewart, R.

Manning, C. (Camberwell, N.)

Usborne, Henry

Fairhurst, F.

Manning, Mrs. L. (Epping)

Vernon, Maj. W. F.

Farthing, W. J.

Mayhew, C. P.

Walker, G. H.

Fletcher, E. G. M. (Islington, E.)

Medlicott, F.

Wallace, G. D. (Chislehurst)

Follick, M.

Messer, F.

Wallace, H. W. (Walthamstow, E.)

Foot, M. M.

Middleton, Mrs. L.

Warbey, W. N.

Forman, J. C.

Mikardo, Ian

Watkins, T. E.

Foster, W. (Wigan)

Mitchison, Maj. G. R.

Watson, W. M.

Fraser, T. (Hamilton)

Monslow, W.

Weitzman, D.

Freeman, Maj. J. (Watford)

Moody, A. S.

Whiteley, Rt. Hon. W.

Freeman, Peter (Newport)

Morgan, Dr. H. B.

Wigg, Col. G. E.

Gallacher, W.

Morley, R.

Wilkes, Maj. L.

Ganley, Mrs. C. S.

Morris, Lt.-Col. H. (Sheffield, C.)

Wilkins, W. A.

George, Lady M. Lloyd (Anglesey)

Morris, P. (Swansea, W.)

Willey, F. T. (Sunderland)

Willey, O. G. (Cleveland)

Wilson, J. H.

Younger, Hon. Kenneth

Williams, J. L. (Kelvingrove)

Wise, Major F. J.

Zilliacus, K.

Williams, W. R. (Heston)

Woodburn, A.

Williamson, T.

Woods, G. S.

TELLERS FOR THE AYES:

Wills, Mrs. E. A.

Yates, V. F.

Mr. Pearson and

Mr. Joseph Henderson.

NOES

Assheton, Rt. Hon. R.

Jarvis, Sir J.

Reed, Sir S. (Aylesbury)

Astor, Hon. M.

Jennings, R.

Robertson, Sir D. (Streatham)

Baldwin, A. E.

Joynson-Hicks, Lt.-Cdr. Hon. L. W.

Robinson, Wing-Comdr. Roland

Bennett, Sir P.

Keeling, E. H.

Ropner, Col. L.

Boles, Lt.-Col. D. C. (Wells)

Kingsmill, Lt.-Col. W. H.

Sanderson, Sir F.

Bower, N.

Lambert, Hon. G.

Shephard, S. (Newark)

Boyd-Carpenter, J. A.

Legge-Bourke, Maj. E. A. H.

Smiles, Lt.-Col. Sir W.

Braithwaite, Lt.-Comdr. J. G.

Lloyd, Maj. Guy (Renfrew, E.)

Snadden, W. M.

Buchan-Hepburn, P. G. T.

Low, Brig. A. R. W.

Spearman, A. C. M.

Challen, C.

Lucas, Major Sir J.

Stoddart-Scott, Col. M.

Clifton-Brown, Lt.-Col. G.

Lucas-Tooth, Sir H.

Stuart, Rt. Hon. J. (Moray)

Conant, Maj. R. J. E.

McCallum, Maj. D.

Taylor, C. S. (Eastbourne)

Crookshank, Capt Rt. Hon. H. F. C.

Mackeson, Lt.-Col. H. R.

Teeling, William

Crosthwaite-Eyre, Col. O. E.

McKie, J. H. (Galloway)

Thomas, J. P. L. (Hereford)

Crowder, Capt. J. F. E.

Macmillan, Rt. Hon. Harold (Bromley)

Thorp, Lt.-Col. R. A. F.

Davidson, Viscountess

Maitland, Comdr. J. W.

Touche, G. C.

Dodds-Parker, A. D.

Manningham-Buller, R. E.

Turton, R. H.

Donner, Sqn.-Ldr. P. W.

Marlowe, A. A. H.

Vane, W. M. T.

Dower, Lt.-Col. A. V. G. (Penrith)

Marples, A. E.

Wakefield, Sir W. W.

Drayson, Capt. G. B.

Marshall, D. (Bodmin)

Walker-Smith, D.

Drewe, C.

Maude, J. C.

Ward, Hon G. R.

Dugdale, Maj. Sir T. (Richmond)

Mellor, Sir J.

Wheatley, Colonel M. J.

Fleming, Sqn.-Ldr. E. L.

Morrison, Maj. J. G. (Salisbury)

White, Sir D. (Fareham)

Galbraith, Cmdr T. D.

Morrison, Rt. Hn. W. S. (Cirencester)

White, J. B. (Canterbury)

Grimston, R. V.

Mott-Radclyffe, Maj. C. E.

Willoughby de Eresby, Lord

Hare, Lieut-Col. Hn. J. H. (W'db'ge)

Neven-Spence, Sir B.

Winterton, Rt. Hon Earl

Harvey, Air-Comdre A. V.

Orr-Ewing, I. L.

York, C.

Hinchingbrooke, Viscount

Ponsonby, Col. C. E.

Young, Sir A. S. L. (Partick)

Hollis, M. C.

Poole, O. B. S. (Oswestry)

Hope, Lord J.

Prescott, Stanley

TELLERS FOR THE NOES:

Hutchison, Col. J. R. (Glasgow, C.)

Raikes, H. V.

Commander Agnew and

Mr. Studholme.

Bill accordingly read a Second time.

Bill committed to a Committee of the Whole House for Monday next.—[ Mr. R. J. Taylor. ]

Army Training Areas (Agricultural Land)

Motion made, and Question proposed, "That this House do now adjourn."—[ Mr. R. J. Taylor. ]

11.29 p.m.

I feel that I should apologise to the House for delaying it at this late hour, but as the matter which I am about to raise affects the food production of this country, I am certain I shall be excused.

It is the question of the derequisitioning for agricultural purposes of surplus military training areas. The question has been raised by several hon. Members on both sides of the House during the past month. They have urged that the War Office should dispossess itself of many of the thousands of acres which it took over in order to train, not only our own armies, but also large numbers of Canadian and American divisions, in battle preparation within these islands. On 18th December last the Secretary of State for War informed the House that the War Office held 5,000,000 acres of land for training purposes. That figure was shocking, because at that time many of us realised that the future food position of this country was in no way assured. The fact that in December, 1945, this vast acreage was still in the hands of the War Office caused considerable apprehension to those of us who were able to study this matter. We were told then that of that 5,000,000 acres, 1,000,000 acres could not be handed over because of un-exploded missiles, and it would be unsafe to hand it back to private ownership; another 1,000,000 acres was in the course of being handed over, and that the remaining 3,000,000 acres would be handed over as and when possible. Today, in answer to a Question I put to the right hon. Gentleman the Secretary of State for War, I was happy to hear that a reasonable start has been made, and that, since last December, 2,700,000 acres have been handed back. I was very distressed that the War Office, in giving those figures, were unable to say what proportion of that land could be used for agricultural purposes, because it was quite clear that the priority of handing back suitable land for agriculture had not been considered, or those figures would have been available. None of the land which has been handed over as a result of pressure, mainly, I think, from my hon. Friends on this side of the House, was available for production for our cereals for the harvest of this year.

I desire to put a few questions to the hon. Gentleman who is to reply. With regard to the balance of land, practically 2½ million acres still held by the War Office, how much longer are we to wait until a definite announcement is made about what land the War Office will require? This is not only a food problem; it is also a human problem. Today, practically a year after V.J. Day, there are thousands of families waiting to know whether or not they are to be allowed to return to their homes in order to resume their prewar lives and occupations. In view of the food situation, and in view of the fact that we have had an announcement from the War Office that they now have in mind what the future shape of the Regular Army and the Territorial Army will be, there can be no further excuse for delaying a pronouncement of that sort. We do not want to be told that the War Office have made up their minds but that this matter has to go round to other Departments, because we consider that today the claims of the Ministries are not as great as the claims of the British people. The maximum amount of food possible should be grown in this country during the next 12 months.

What consideration has been given to developing training areas outside this country? We are told that the occupation of Germany is likely to continue for a minimum of ten years. A far more likely estimate would be 20 or 25 years. Obviously a large proportion of our active field Army will be engaged in that occupational task. What better thing could they do during their service abroad than to undergo a series of courses of realistic battle training? In the British zone in Germany there is the vast Luneberg Heath, where before the war the cream of the German Army was trained for its battle experience. We have also the island of Northern Sylt, and many other similar areas suitable for combined operations training, and so on. I want to ask, has a proper survey been made of the potential use of such areas outside these islands in order that we shall be able to effect a considerable saving in the requirement of our own land by the British Army.

Thirdly, I would like to ask the hon. Gentleman whether the training requirements of the Army have been coordinated on a national, rather than on a command, basis. During the war, certainly before the war, and, I believe, up to the present, the various commands have been apt to say that each must have its own battle areas, its own anti-tank gun ranges, its own combined landing areas, and so on. I would cite, as an example of that, a case of which I know in Dorset—Kimridge, of which I understand my noble Friend the Member for South Dorset (Viscount Hinchingbrooke) will be able to give details later. I understand that this was requisitioned after the war so that the Southern Command could have a tank gun range. There are, I know, areas in the north and in Devonshire, and elsewhere, which could have been made available for such use. I feel that greater attention should be paid to the proper coordination of these requirements on a national, rather than a Command, basis.

I would next ask what steps have been taken to remove unexploded missiles from areas which otherwise would have been handed over to agricultural use. I imagine that the employment of officers and N.C.O.'s of the Royal Engineers, with gangs of prisoners of war under them, could in a comparatively short space of time, have overcome the present difficulties which there may be in handing over such areas. I would be grateful for some assurance on that point. The urgency of this matter has been brought home to me by a practical example of what is happening in my own constituency, and I know that the same sort of thing is happening in many other parts of the country. The Orford and Sudbury battle area of Suffolk, is an area of some 80,000 acres. Seventy per cent. of that is first-class grazing land capable of arable cultivation. In 1942, 450 men, women, and children were turned out at a moment's notice from 150 habitable houses. They were, at the time, given solemn assurances by high ranking representatives not only of the War Office, but also of the Regional Commissioner, that immediately after the war, they would be allowed to return to their homes. Despite the fact that little, or no, use has been made of this area since D-Day, more than two years ago, the War Office still retains the area. Not only is a pledge of honour disavowed, but the nation has been deprived, during that time, of many hundreds of tons of valuable foodstuffs. I think the record of the Government in this matter is most unfortunate in view of the present situation with regard to food.

This is a problem which, above all, should have been tackled by sensible planning, by forethought, and the careful weighing up of information of the nation's food requirements. Where are the planners? They seem to be otherwise engaged. The nation's larder, I am afraid, has been neglected in order that the Lord President of the Council may interfere with the future efficiency of the steel industry, and threaten the road hauliers, and so on. I would appeal to the hon. Gentleman—I know he has a sympathetic character—in all sincerity to start, even though it may be late in the day to deal with this matter, to put first things first, and to allow the farmers of this country to make the utmost use of the agricultural resources of the country during the very grim months that lie ahead.

11.40 p.m.

I should like, for two minutes, very strongly to support the plea made by my hon. Friend, as I represent a part of the country which has suffered particularly from these activites—Salisbury Plain. In that part of the country, a very large part of the land is already, and was before the war, the property of the War Department, but that land has by no means gained from modern developments in its use as a training area. Whereas, before the war, the troops were able to carry on their training in such a way that people were able to live there and carry on their agricultural activity, since the war people have had to be turned out of the modern village of Imber, which the Government rebuilt at considerable expense before the war, and their agricultural activity can no longer be carried on in that area in a satisfactory fashion. So far from that resulting in compensation in other spheres, we find that, in other parts of the county, the Government is stepping in and preventing agricultural activity in areas not previously used.

In my own constituency there is the land round Berwick Bassett where agricultural land is being kept from agricultural use in order that not British troops but Dutch troops might carry on their training there. The War Office has recently extended its grasp over a considerable stretch of land near Chirron. Land further East was taken over in Sakernake Forest, where, for some reason which I am unable to fathom, there are large stores of German ammunition which it has been found necessary to bring overseas and to put down in the middle of the Forest, with the result that two very serious explosions have taken place, both resulting in loss of human life. Today, the farmers are still required to go on with agricultural production, but find it quite impossible after the lapse of 15 months to get any repairs to their wrecked agricultural buildings. I could prolong the list very much, but I will only say that I strongly support the plea of my hon. Friend, and assure him that, in the course of the short time I have been associated with that constituency, I have found out that, whereas a year ago, the War Department was a popular landlord in that part of the world, now hardly a day passes but people come with one plea or another that their agricultural life is being rendered impossible by the activities of the Government.

11.43 p.m.

I hope that the hon. Gentleman, when he replies, will conclude that the hon. Member for Woodbridge (Mr. Hare) has served a valuable purpose in initiating this Debate. I do not come to this matter as a stranger, as the hon. Gentleman knows, because I have been tackling this matter for two years. One-third of my constituency is in the hands of the War Office, 600 people have been dispossessed of their homes, agriculture has suffered very seriously, and a part of England which is a centre for holiday-makers and is scheduled as a nature reserve, is permanently held back by the needs of military training. I was assured, not only by the hon. Gentleman but by the Secretary of State himself, who came down and made a tour of my constituency at Easter to see the whole problem for himself, that a decision would be taken on this matter in the course of the summer. I hope that the hon. Gentleman is going to emphasise that decision. It is surely time that the War Office made up their minds about the needs of training for the Army. The Chief of the Imperial General Staff has just concluded a world tour. He is to hold a Camberley conference on the future of the Army in August, I understand. I hope that he will finally decide the whole question of training and the future disposition of Army training establishments. If the hon. Gentleman can give us an assurance that there has been no delay and the matter is going forward, then my hon. Friends, I feel sure, will be content to let the matter rest there. If the War Office show a dilatory spirit in the face of the fact that the war has been over for twelve months, then we shall have to take all the further action which lies in our power to get satisfaction.

11.45 p.m.

I hope to show the House and the noble Lord, in response to his last remarks, that the War Office are doing their best to meet the case put up on several occasions by hon. Members on different sides of the House. The hon. Member for Woodbridge (Mr. Hare) was good enough to make a kindly reference to me but he also invited me to enter a sphere into which I do not propose to step tonight. The activities of my right hon. Friend the Lord President of the Council have nothing to do with this question. As far as I can in the limited time at my disposal, I hope to give some facts and figures which will go some way towards convincing hon. Gentlemen opposite that the War Office are endeavouring to carry out their responsibility for releasing as large an area as possible of the requisitioned land taken during the war for military purposes. It was necessary during the war, hon. Members will admit, and it may be interesting to the House to know that during the war, we had a settled policy of requisitioning in consultation with certain other Ministries, particularly the Ministry of Agriculture. The procedure followed during the war is now being followed in the reverse direction when we come to derequisition or release areas, as we are doing to a very large extent.

Since the end of the war it has been the policy of the War Office only to hold that land which we consider will be required, either now or in relation to our long term training policy for military purposes. All land that does not come within that ambit is released as quickly as possible. As I said, we have been in close liaison with the Ministry of Agriculture. I am informed that to a large extent we have met the special requirements of the Ministry of Agriculture for certain releases of agricultural land. In substantiation of that statement, I would like to quote a few figures, if the House will bear with me, because I think they will largely make my case. The acreage held by the War Office at the peak period, that is June, 1944, was 10,875,224 acres. The acreage held on 31st May last was 2,228,083 acres. Roughly in the two years from June, 1944, we have released 8,647,000 acres. Of that total held on the 31st May, 350,000 acres consists of land which we think it is not advisable in the public interest to release until we have cleared unexploded missiles. We are in the process of doing that. We are doing it with the limited amount of technical and specialist labour that we have for this sort of work. We are doing it as quickly as we can. The only limit in that respect is the amount of technical and skilled manpower at our disposal.

Of 2,362,000 odd acres specifically asked to be released by the Ministry of Agriculture for food purposes, we have released the following: Of what we call the "A" priority land of which there are 1,036,468 acres, we have released 96 per cent. A further 1 per cent. is in process of being released, and the amount still held is, therefore, only 3 per cent. I think it will be realised that we are meeting special requirements with the release of that land; it is the best farming land, and it is right that we should release that first. There remains a certain amount of "second priority" land—1,326,420 acres—and of that, we have released 73 per cent. A further 7 per cent. is in process of release, and 20 per cent. is still in our hands. I think it will be seen that we are trying to release agricultural land as much and as quickly as we can.

But I must warn the House that we shall want more land than we wanted before the war for training purposes. In that connection, I have been asked what utilisation has been made of land outside these areas for training purposes. A good deal. We are in process of making surveys outside these islands, but it must be remembered that it is not easy to go into other countries—even occupied countries—and take their land for purposes of military training. But at present, we cannot make firm decisions because a number of the factors concerned are not entirely in the control of the War Office. We are not able to make any comprehensive announcement, but we are getting on, progressively, with the job of releasing land still held by us.

Will the hon. Gentleman give some indication of which land is going to be retained? It will help those people if we can tell them.

That is a fair question. We will make those decisions, and one of the things which will be dealt with by the Camberley Conferences will be training matters with which that question is concerned. We have some very interesting maps at the War Office showing which land was taken, and which land has been released, and I invite hon. Members to come there to see them or perhaps I could get them displayed in some part of the House. From these, it will be seen what land is retained for the time being.

I have been asked if training is to be coordinated on a national, rather than a Command, basis. To that, I can give an affirmative answer. Training has been coordinated on a much wider basis, not only between different commands, but also between sister services, and it is sometimes possible to use the same piece of land for the training of the R.A.F. and the Army. That is part of the coordination in training which commenced during the war. I sympathise very much with the noble Lord, the Member for South Dorset (Viscount Hinchingbrooke), who has told us that a large part of his constituency is held by the War Office. I am sure that my right hon. Friend will do all he can to assist in releasing as soon as possible this land in the noble Lord's constituency.

May I ask whether the Minister is going back on the firm reply he gave, that a decision on the matter will be given in the course of this summer?

Nothing I have said traverses anything said by my right hon. Friend, but I cannot say at the moment what is being done in respect of that particular statement. In conclusion, may I say that I want hon. Gentlemen to feel that the War Office is doing nothing unreasonable or arbitrary It is for that reason I gave the invitation to hon. Members to have a look at these maps, to see how much we have done to meet their point of view, and the point of view of others concerned in this matter too. Members will thus get some idea of what our future objectives are as regards retaining land for training I hope that what I have said will go a long way to convince hon Gentlemen that the War Office is not unreasonable in this matter.

May I refer again to the specific question of Imber raised by the hon. Member for Devizes (Mr. Hollis)? Do I take it from what the hon. Gentleman says that it will be some considerable time before we get a decision on this matter? He referred to the question of training for overseas and said that some time would elapse before consultations and inquiries were complete.

I am not in a position to answer that question tonight; I was not given notice of it, and therefore I cannot give a specific answer.

Question put, and agreed to.

Adjourned accordingly at Two Minutes to Twelve o'Clock.