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Commons Chamber

Volume 454: debated on Thursday 29 July 1948

House of Commons

Thursday, July 29, 1948

The House met at Half past Two o'Clock

Prayers

[Mr. SPEAKER in the Chair ]

Oral Answers to Questions

Trade and Commerce

London Dock Strike (Loss)

asked the President of the Board of Trade when he expects to be in a position to give an estimate of the direct and consequential loss arising out of the London dock strike.

It would not be practicable to make any reliable estimate. There is no indication of any dislocation in industrial production.

Cannot the hon. Gentleman do a little better than that? If this is a Government of planners who are working on a year's target, surely they are capable of working out what is the estimated loss of holding up the inward and outward traffic of the Port of London for over two weeks?

When we have the June figures of industrial production, they may show some variation, but, at the present moment, it certainly is not practicable to make any estimate.

Will the hon. Gentleman call the attention of his right hon. Friend to the question, how can we be worthy of Marshall Aid when the people of this country act with such folly?

Is the Minister aware that, again and again, the Government have stated that the turn-round of shipping is vital to our trade, and, that being so, then, surely, any slackening of that turn-round must affect it?

I think the figure amounts to a total of something like 800,000 tons, which is, of course, a serious matter.

Cotton Industry (Re-equipment Schemes)

asked the President of the Board of Trade how many re-equipment schemes have been sanctioned under the terms of the Cotton Spinning (Re-equipment Subsidy) Act, 1948; what are the names of the firms and groupings concerned; the amount of the subsidy granted in respect of each scheme; and how many schemes are being considered.

Fifteen groups, comprising 17 million mule equivalent spindles, have so far been approved for the purposes of the Cotton Spinning (Re-equipment Subsidy) Act, 1948. With the hon. Member's permission I will circulate a list of the groups in the OFFICIAL REPORT. Six of the approved groups have submitted modernisation schemes, which are under discussion with them. No payments of subsidy have yet been made.

Does the Minister consider this to be a reasonable rate of increase in this highly complex matter?

Is it not a fact that the industry has received no benefit what ever from this Act—that no subsidy what ever has been paid?

The industry will receive benefit from the Act when the subsidy is paid, and that will be paid when we have concluded agreements with those sections of the industry which qualify for the subsidy.

Has not a good deal of the delay been caused by the fact that there are so few accountants specialising in this matter?

That may be the case, but I am afraid I do not know whether it is.

Following is the list of approved groups:

Amalgamated Cotton Mills Trust, Ltd.

Barber Textile Corporation, Ltd.

Beehieve Spinning Co., Ltd.

The Belgrave Mills (1926) Ltd.

Combined Egyptian Mills, Ltd.

Crosses and Heatons, Ltd.

Dunlop Cotton Mills, Ltd.

English Sewing Cotton Co. Ltd.

Fine Spinners and Doublers, Ltd.

Hagues Textiles, Ltd.

John Hawkins & Sons, Ltd.

Horrockses Crewdson & Co., Ltd.

Joshua Hoyle & Sons, Ltd.

Lancashire Cotton Corporation, Ltd.

Swan Lane Spinning Co. (1920) Ltd.

Development Councils

4 and 5.

asked the President of the Board of Trade (I) what progress has now been made in setting up development councils for industry, as provided for in the Industrial Organisation and Development Act, 1947; and what industries are affected;

(2) whether he is now in a position to make a statement on the formation of a development council for the pottery industry; and what is the cause of the delay.

I would refer my hon. Friend to the reply given to him by my right hon. Friend on 17th June, to which I have at present nothing to add.

In view of the slow progress which has been made in the setting up of development councils in 10 or 11 industries, and in view of the Minister's promise on 17th June to give a firm statement of his intentions before the end of the Session, may we hear something of what the Government intend to do in this matter?

The intention of the Government is to secure the agreement of industries to the setting up of development councils, and we are proceeding to wards that end, but it involves negotiations, and I am afraid that the negotiations are taking rather a long time. However, we are continuing to keep in the closest possible touch with the industries concerned and we shall report progress as soon as we possibly can.

Will the Parliamentary Secretary reassure the House that no development council will be set up against the wishes of industry, and that a substantial number of people desiring it will be a prerequisite of its establishment?

I think the fact that we have been carrying on these negotiations for a very long time indicates our desire to secure agreement with industry.

Will the Parliamentary Secretary take note of the fact that the organised workers who represent a substantial part of the industries concerned will not be willing to accept advisory bodies without statutory backing?

I think that pending the conclusion of negotiations with the industries concerned, it would be inadvisable to say much about it at this stage.

Is my hon. Friend aware of the very high level of administrative and economic achievement on the part of the Wool Control in the first world war and the recent war, and, in view of those circumstances and the experience of the subsequent inquiries which were made, will he seek to promote a development council in that industry, so as to obviate industrial infiltration from other quarters and permit us to retain our own industrial independence?

We are well aware of the work of the Wool Control with whom we shall be in the closest contact, and, of course, we shall bear all these factors in mind.

Building Licence, Birmingham

asked the President of the Board of Trade why Messrs. Williams and Gray, Ltd., late of Villa Street, Aston, Birmingham, and now temporarily of Caroline Street, Birmingham, whose premises were destroyed by fire last August, have not yet been granted a licence to rebuild their premises, although an official of the Board of Trade has assessed the percentage of their total output that is exported at 90 per cent., and although they cannot remain at their temporary premises beyond December, 1948.

This re-building project has now been approved and a licence for the work has been issued.

Is my hon. Friend aware that so far approval has been given for only 57 tons of steel for use on this building, whereas the work cannot be done without 85 tons of steel? It is no use giving a licence unless the right amount of steel is issued.

My understanding is that this licence was held up in the first place because the quantity of steel asked for could not be supplied; that a revised estimate was put in, and on the basis of the revised estimate the licence was given to the firm. It is not within my knowledge that work is being held up because the required quantity of steel is not forth-coming, but I am quite prepared to have a further look at this matter, and if it is the case that although a licence has been issued less than the necessary quantity of steel is forthcoming, I will see what can be done about it.

Engineering Trade Mission to Canada

asked the President of the Board of Trade for what purpose the Amalgamated Engineering Union representative was included on the engineering trade mission to Canada to investigate market possibilities.

Mr. Fitzpatrick was appointed a member of the Mission in accordance with the policy of His Majesty's Government to secure the co-operation of organised labour in all matters affecting production and export.

Will the representative of the A.E.U. be given special facilities for studying the high level of engineering productivity in Canada?

I have not the slightest doubt that he will be given all the necessary facilities.

Surplus Machine Tools (Export)

asked the President of the Board of Trade whether he has issued, or intends to issue in the future, the necessary licences for the export to Poland or any other eastern European country of the machine tools which were purchased recently by a Pole at Government auction sales.

No licences have been issued for the export of machine tools to any of these countries. The only machine tools that require export licences are certain types designed for munition making, and should any applications be received for these exports they would be carefully considered from all aspects.

If and when machine tools specially designed and solely suit able for the manufacture of armaments are bought by anybody wishing to get an export licence from the President of the Board of Trade, may we be assured that no such licence will be given if they are war potential?

I thought my answer made that quite clear. Machine tools which are of possible value in the case of a war are subject to an export licence, and before an export licence was granted very careful consideration would be given to all aspects of the transaction.

Did the hon. Gentleman at the time of the Election make political use of the granting of export licences by the Government for the sale of scrap iron to Japan, and while that was largely fanciful, is this not a dangerous fact?

I am not sure whether 1 did or not, but in this case we are considering something completely hypothetical, namely, the possible export of some supposed machine tools about which I have no definite information. In the case to which the noble Lord alluded, we were referring to something which in fact happened.

Will the hon. Gentleman assure the House that none of these tools came to this country under Lend-Lease?

I have been asked a Question about an export licence for some machine tools. Since there has been no application for an export licence for these machine tools, I cannot say either that they exist or where they came from if they do exist.

Does the hon. Gentleman mean that he has received no application to permit the export of the rifling machines recently purchased by the Polish Purchasing Commission?

Honey Jars, Lincolnshire

asked the President of the Board of Trade if he is aware of the shortage of honey jars in this country and particularly in Lincoln-shire; and that considerable quantities of honey may be wasted; and what steps he is taking to meet this requirement in the near future.

The output of glass containers generally has recently increased. Honey jars have shared in this increase but as they are still scarcer than some other types of container, I have asked the manufacturers to do what they can to step up their production.

Will the hon. Gentleman look into the particular local shortage in Lincolnshire, because it does exist, and it may well upset the whole of the honey harvest?

Perhaps the hon. and gallant Gentleman will give me details, and I shall be glad to look into them.

Is the Minister aware that the bee population of this country is very much less than it used to be, and is the real reason for the shortage of honey?

Industrial Clothing

the President of the Board of Trade if he is aware that many retailers are concerned about a prospective shortage of utility industrial overalls and shirts; and whether he is prepared to release additional material to the manufacturers in time to ensure adequate supplies during the Autumn and Winter.

The supply of cotton cloth of all types to the home market is falling as a result of the expansion of export production. Output of overall cloth, however, is being maintained at as high a level as possible, in view of the essential character of these garments. The supply of cloth for shirts cannot be similarly maintained, owing to the needs of export, but I hope that supplies will continue to be available in the shops as a result of the increase of coupon pointing which came into effect on 26th May.

Does the hon. Gentleman realise that retailers dealing with large agricultural areas are particularly concerned about this matter, and that shirts are extremely important, particularly in view of the coming Winter months?

I am aware of that. I hope the hon. Gentleman is aware that we do not control the allocation of cloth to the makers-up. That was de-controlled two years ago, and in many cases the effects have not been what were expected by those who asked for de-control.

Machinery (Imports from U.S.A.)

asked the President of the Board of Trade if manufacturers in this country who desire to import certain machinery from the United States for the purpose of expanding production for export, and for the import of which import licences are not now available, will be enabled to secure such essential equipment under Marshall Aid.

It is already the policy to issue import licences for machinery when an essential need has been established and provided that similar British machinery is not available within a reasonable time. I hope that our future allocations of aid under E.R.P. will enable us to maintain these arrangements.

Is it not a fact that licences to import certain very necessary machinery into this country have been refused? What I want to know is whether the Marshall Plan will afford better facilities for the granting of import licences in respect of those machines.

The normal practice is to issue an import licence if the machinery is deemed to be necessary and if it is unobtainable in this country or possibly in a soft currency area. Those arrangements will continue under E.R.P. If the hon. Member has any knowledge of any particular instance of necessary machines being refused import licences, I will be glad if he will let me have details and I will do what I can.

On the assumption that owing to the shortage of dollars it is extremely unlikely that the Government will give permission for the import of machinery from America or, indeed, for the making of machines in this country under an American licence, would my hon. Friend say whether it is the policy of his Department, in circumstances where such permission is granted, to make an allocation of raw materials to that industry where the new machinery is installed?

I am afraid that is rather a different question, but the raw material situation has been taken into account in deciding whether the importation of a machine is desirable or not.

Textile Manufacture, South Wales

asked the President of the Board of Trade what success has met his efforts to introduce new units of textile manufacture within those areas in South Wales where the percentage of un-employment exceeds seven.

Three extensions to existing factories engaged on textile manufacture have already been completed in areas in the South Wales development area where the percentage of unemployment exceeds seven, and three new factories are under construction.

Grenfell Factories, South Wales

asked the President of the Board of Trade what steps he is taking to ensure that the planned Grenfell factories in South Wales are being proceeded with with an urgency befitting the high percentage of unemployed men suffering from varying degrees of disablement.

We have throughout taken all possible steps to overcome the many difficulties which have tended to delay completion of these factories, and have kept in close touch with the Ministry of Supply and the Ministry of Works with a view to speeding up deliveries of building materials and components. I am glad to say that all 10 factories should be ready within the next two months.

Is the Minister aware that the volume of unemployment, particularly in regard to disabled men, is mounting up rather rapidly? In one area in South Wales the percentage is now 12, in another it is 10, and in another it is about 7½, and the average over the whole country, by comparison, is only about 2 per cent. Is the Minister aware that this high percentage in South Wales compares very un-favourably with the rest of the country?

I am aware of the very serious and, in some cases, tragic problems. That is why I do everything I possibly can, and my Department does everything it possibly can, to speed up the completion of these factories and to deal with any other difficulties which may arise to prevent the reduction of this figure of unemployment.

Would my hon. Friend consider concentrating on one factory at a time and getting that one ready, because the delay appears to be caused by the scattering of effort over a number of factories?

No; I do not think that is at all practicable. There are different stages in the building of a factory; different men and different materials are employed at different times and if we concentrated on one factory at a time there would be men and materials unemployed which could be usefully employed helping the completion of other factories.

Will the hon. Member make certain that when the factories are completed they get priority of raw materials to keep them engaged?

It is a fact that the factories in the development areas receive prior consideration in the allocation of raw materials, where His Majesty's Government have control of the allocation of raw materials.

Paper Allocation (Film Publication)

asked the President of the Board of Trade why an extra supply of paper was issued to the firm of Dennis Yates Publications, Ltd., to enable it to print extra copies of the story of the film called "the Iron Curtain."

No paper has been specially licensed for this publication. It does not appear to qualify for assistance from the special reserve of paper for essential books for the home market. It may, however, qualify for assistance from the special reserve for export sales.

Is the Minister aware that a report was issued by the publishers declaring that they had a special supply and will he look into it to see whether they are obtaining this on the black market for this very black market kind of book?

The authority for saying whether these publishers are getting an extra supply is the Board of Trade and not the publishers themselves. I have assured the House that they have not had a special allocation, and if the hon. Member cares to send me any details of any information of black market activities I shall be only too happy to look into them.

Coal Industry

Absenteeism

asked the Minister of Fuel arid Power whether a uniform system of recording absenteeism is employed throughout the British coalfields; and whether the records distinguish between absenteeism caused by injuries, including those causing no more than three days' absence, from all other causes.

Absenteeism statistics are collected on a form of return which is the same for all coal fields. This return does not show separately absenteeism caused by injuries, but separate statistics are now collected showing under one head the number of wage-earners absent because of accidents, industrial disease or certified sickness where the absence lasts for the whole of any week.

Is my right hon. Friend aware that in the past the different districts of the British coalfields employed different bases for compiling statistics of this kind, with the result that in some districts the figures adversely reflected upon the miners?

May I ask the Minister if, when compiling the list on absenteeism, he will also compile a list of regular attenders and make a recommendation that the Closure shall never be used against a regular attender in this House?

Volunteer Workers

asked the Minister of Fuel and Power how many of the 8,885 European Volunteer Workers and the unspecified number of other volunteer workers who entered the mining industry during the first six months of 1948 are now employed in the industry.

All but about 200 of the European Volunteer Workers who entered coalmining employment during the first six months of 1948 remained so employed at the end of the period. I regret that I have no information as to how many of the other recruits, all of whom were, of course, volunteer workers, both entered and left the industry during the same period.

May I ask the Minister, with regard to the unspecified number of volunteers, what steps are taken to retain these men in the industry after they have been trained?

All workers in the industry are subject to the Control of Engagement Order.

Is my right hon. Friend aware that a large number of people, particularly some of the Irish workers—not all of them—who come over here, come here definitely stating that once they have been trained they do not intend to remain in the industry? What steps are taken to see that they do remain in the industry?

If my hon. Friend could give me any particulars of this kind I would pass them on to my right hon. Friend the Minister of Labour for attention.

Exports to Eire (Quality)

asked the Minister of Fuel and Power if, in view of the fact that some 500,000 tons of coal is lying in dumps in Eire and that because of the inferior quality the people of Eire will not buy it, he will take steps to improve the quality of the coal offered for export.

I am advised that the coal referred to is not United Kingdom coal. I am also informed by the National Coal Board that they have had no com plaints about the quality of the coal exported from this country. With regard to the last part of the Question, I would refer the hon. Member to paragraphs 272–277 of the Annual Report of the National Coal Board for 1947.

In view of the general complaints, will the Minister introduce legislation to withdraw the salaries from members of the Coal Board and pay them by results?

Coal Face Workers

asked the Minister of Fuel and Power what proportion of men employed in the mines are not engaged in producing coal; and what was the com parable figure prior to nationalisation.

All wage-earners employed at collieries are engaged, directly or indirectly, in the production and preparation of coal. The proportion of those employed at the coal face has increased slightly from 40.13 per cent, in the second quarter of 1946 to 40.32 per cent, in the corresponding quarter of this year.

Can the Minister say whether he is giving his attention to trying to get an increase in the number of those directly producing coal at the coal face, because that is one of the advantages that we expected to come from nationalisation?

I fully agree that it is most essential that we should get an increased proportion of face workers.

Fuel and Power

Petrol Rationing (Saving)

asked the Minister of Fuel and Power what monthly saving has been effected by the new petrol rationing arrangements; and when he expects to be able to increase the standard ration.

In reply to the first part of the Question, I would refer the hon. Member to the reply I gave to the hon. Member for Mile End (Mr. Piratin) on 15th July. I am not at present prepared to make any statement on the future of the standard ration.

Can the Minister say whether he has succeeded in stopping the leaks of petrol into the black market and, if so, when the honest motorist may feel the benefit of that?

So far as we can see, the measures taken to stop the black market have been very successful, but at the moment I cannot say how much saving has been achieved, partly because the standard ration can be used at any time during the six months.

Street Lighting, West End

asked the Minister of Fuel and Power if, in view of the large number of overseas visitors who will be in London during the next few weeks, he will authorise a temporary restoration of pre-war lighting in the West End of London.

No, Sir. In view of the continuing need for economy in the consumption of all kinds of fuel, including electricity, I am afraid I cannot agree to relax the restrictions on display lighting.

Supplementary Petrol Allowances

asked the Minister of Fuel and Power whether he will arrange for the issue of petrol coupons to enable a 64-year-old badly disabled ex-Service man, particulars of whom have been sent to him, to use his car for the purposes of a short holiday trip.

In thanking the right hon. Gentleman for that humane and generous answer, may I ask him to invite the attention of his officials, who refused this application for two months, to the necessity for adopting a more humane and tolerant attitude in these cases?

I cannot accept that the officials were wrong in this case. They did not have the information on which my final decision was based.

asked the Minister of Fuel and Power if the area covered by a commercial traveller and manufacturer's agent will be taken into account in future in deciding the granting of an allowance of petrol, in view of the fact that the maximum possible allowance on the existing basis is inadequate for those whose business extends over a very wide area.

I would refer the hon. Member to the answers given to my hon. Friend the Member for Rother Valley (Mr. D. Griffiths) on 18th March and to my hon. Friend the Member for Caernarvonshire (Mr. G. Roberts) on 15th July, to which I have at present nothing to add.

Is the Minister aware that there are commercial travellers and manufacturers' agents with very wide areas to cover? It is undesirable to split them up because that is a waste of manpower. Could he not give consideration to increasing the maximum possible allowance?

As I explained on a previous occasion the matter is being discussed with the Commercial Travellers' Association and we have asked them if they will produce some plan which is more satisfactory than the present one, without using any more petrol.

Is the right hon. Gentleman aware that it is possible to get the maximum allowance for a very much smaller mileage than that covered by these commercial travellers? People are travelling within a very near radius of a city with the maximum allowance, while these travellers, travelling far afield, cannot get any more petrol.

All these matters are being discussed with the Commercial Travellers' Association. I must say that hitherto they have always taken the line that it would not be possible to allocate petrol on an area basis. Now they have changed their minds and we have asked if they will help by producing a plan.

Arising out of previous answers, is the Minister aware that the previous answers were not at all helpful and is he also aware that at the present minute this attitude towards commercial travellers is seriously handicapping trade and industry, particularly in agricultural and rural areas?

All I can say is that commercial travellers are getting about three times as much petrol as they got in 1945.

Is the right hon. Gentleman aware that people who have two jobs can get petrol in respect of the main job and not in respect of the subsidiary job? Will he look into that with a view to increasing the amount of petrol used in the subsidiary job?

That is an entirely different question, but the noble Lord is not quite correct in his assumption.

Haifa Refinery

asked the Minister of Fuel and Power what potential loss of refined petrol has been incurred since the closing down of the Haifa refineries; and what are the conditions proposed before these refineries can be restored to full operation.

In normal circumstances the amount of motor spirit produced at Haifa refinery is approximately 645,000 tons per annum out of a total output of 4 million tons of refined petroleum products. As regards the second part of the Question, I would refer my hon. Friend to the reply given yesterday to my right hon. Friend the Secretary of State for Foreign Affairs to the hon. and gallant Member for Lewes (Major Beamish).

Is my right hon. Friend aware that the figure of 4 million tons given yesterday is more than 33 times the present total allocation of basic petrol and that if petrol could be brought over from our Persian oilfields in tankers to Haifa the present basis of the allocation of petrol could be increased 33 times over? Is not that rather a terrible price to pay for the delays in securing facilities in Haifa?

No, Sir. One cannot, of course, consider the output of one refinery in relation to supplies to the United Kingdom. We have to consider it in relation to the needs of the sterling area, export trade and everything else.

May I ask my right hon. Friend if any petrol has been sent from Kirkuk to be refined in Tripoli or Syria?

As the capacity of the Haifa refinery may now be utilised for refining American oil, does not this represent a very substantial loss in our dollar market?

Nobody denies that the loss of output from the refinery at Haifa is a serious matter, but the oil which is refined is, in fact, produced by the Iraq Petroleum Company, which is an international body.

Children's Officers (Salaries)

asked the Secretary of State for the Home Department what advice he has given to local authorities respecting the selection and scale of salary of Children's Officers.

General advice as to the qualifications to be looked for in persons to be appointed as children's officers was given to local authorities in a circular isued by the Home Office in September last: this advice was related to paragraph 446 of the Curtis Committee Report. Detailed advice is offered when authorities consult me about individual applicants in accordance with Section 41 (2) of the Children Act. Salaries are settled by the local authorities: the circular called attention to the importance of offering such salaries as to attract candidates with high qualifications.

Will my right hon. Friend impress on authorities when he has the opportunity of doing so the importance of selecting candidates of a really high grade, and, particularly, of a grade comparable, so far as possible, with that of directors of education?

I think that it is very difficult to compare the officer of one local authority with the officer of another, and I am not sure that all the qualifications that should be looked for in a director of education would be required in the case of these officers. I hope that the Debates in this House left no authority under any delusion as to the importance this House attaches to the quality of the persons to be appointed.

It seems to me that the right hon. Gentleman's reply could well have been made a year ago. Have not his views been at all affected by what has been said during the passage of the Bill through the House?

No question was put to me a year ago, and, therefore, I did not have to answer it. The views that I have today expressed are the same as those I expressed in Committee on the Bill, as the hon. Member knows, for he served on the Committee.

Poisons Board

asked the Secretary of State for the Home Department the composition of the Poisons Board.

I will with permission circulate in the OFFICIAL REPORT the names of the present members of the Poisons Board and of the authorities appointing them.

Following are the names:

Pharmacy and Poisons Act, 1933

Poisons Board (1945–1948)

Name of member and appointing authority—

Bertram Reece, Esq. (Chairman)—Secretary of State for the Home Department.

Major W. H. Coles, D.S.O.—Secretary of State for the Home Department.

E. J. Mount, Esq—Secretary of State for the Home Department

J. M. Johnston, Esq., M.D., F.R.C.S.E. (Ed.)—Secretary of State for Scotland.

J. N. Beckett, Esq.—Minister of Health.

W. P. Kennedy, Esq., Ph.D., F.R.I.C, L.R.C.P,, L.R.C.S., B.Sc—Minister of Health.

C. T. Gimingham, Esq., O.B.E., B.Sc, F.R.I.C.—Minister of Agriculture and Fisheries

J. R. Nicholls, Esq., D.Sc, F.R.I.C— Government Chemist.

W. Deacon, Esq., C.B.E., M.Sc, M.P.S., J. P.—Pharmaceutical Society of Great Britain.

C. W. Maplethorpe, Esq., Ph.C, F.R.I.C— Pharmaceutical Society of Great Britain.

H. H. Linstead, Esq., O.B.E., Ph.C, M.P.— Pharmaceutical Society of Great Britain.

H. Noble, Esq., B.Ph., Ph.C—Pharmaceutical Society of Great Britain.

A. Wilson, Esq., M.P.S.—Pharmaceutical Society of Great Britain.

Professor Sir Francis Fraser, M.D., F.R.C.P.—Royal College of Physicians of London.

D. M. Lyon, Esq., M.D., D.Sc, F.R.C.P. (Ed.)—Royal College of Physicians of Edinburgh

Professor David Campbell, M.C., M.A., M.D.—General Medical Council.

G. Roche Lynch, Esq., O.B.E., M.B., B.S. (London), D.P.H. (Eng), F.R.I.C—Royal Institute of Chemistry of Great Britain and Ireland.

J. W. Bone, Esq., M.B., CM. (Ed.), B.Sc— British Medical Association.

Prison Punishments (Committee)

asked the Secretary of State for the Home Department if he has come to any decision on the question of appointing a committee to inquire into the question of punishments in prisons.

I hope to be able to announce the composition and terms of reference of this Committee in the near future.

Will this Committee have power to look into the question of prison punishments in Scotland?

I am consulting my right hon. Friend the Secretary of State for Scotland about the appointments.

Firearms (Surrender)

asked the Secretary of State for the Home Department approximately what amount of money or moneysworth has accrued to his Department by reason of the surrender of fire-arms since the war.

asked the Secretary of State for the Home Department what has become of the firearms purchased by citizens in order to defend the country against invasion and since surrendered without payment; are they stored and maintained; have they been sold and if so, through what agency; what guarantee is there that they do not return into illicit circulation; are they sold for scrap; and what effective guarantee is there that they are, in fact, so used.

Firearms surrendered to the police are handed over to the Central Ordnance Depot, and their storage and disposal are matters for my right hon. Friends the Secretary of State for War and the Minister of Supply. I am satisfied that effective steps are taken to prevent their passing into illicit circulation.

Yes, but suppose that, unhappily, a second emergency should occur, and that the Home Guard should be reformed, can the right hon. Gentle man say whether those people who have commanded those units who bought their own weapons out of their own pockets and have surrendered them to him will be sup plied with them free next time, or whether they will have to buy them again the next time and then have to surrender them again?

National Health Service

Dentists

asked the Minister of Health what steps he is taking to implement the Spens Report on dental remuneration with regard to the salaries of public dental officers.

I would refer my hon. Friend to the reply given to the hon. Member for South-East Essex (Mr. Gunter) on 22nd July, a copy of which I am sending him.

asked the Minister of Health how many members of the local dental committees of the Middlesex Executive Council have applied for inclusion in the dental list under the National Health Service Act.

Six, one of whom has given notice that he wishes his name to be with drawn.

asked the Minister of Health what steps he is taking to expedite the delivery to dentists of Forms E.C. 17 and E.C. 25.

So far as I am aware supplies of these forms are now being sent to all dentists as soon as they apply for inclusion in the dental list.

Invalid Chairs

asked the Minister of Health when the first free distribution of mechanically-operated invalid chairs can be anticipated under the new National Health Scheme; on what scale it will be maintained; and on what basis of priority these facilities will be made available.

Arrangements have already been made through the Ministry of Pensions to provide these chairs as part of the Hospital Service. Patients will receive them on the same grounds as war pensions. That means, broadly, people who are medically fit to drive, have lost the use of their legs or are badly disabled and need the chairs to get or to keep work.

Could my right hon. Friend give the House any idea of how many of these chairs are to be allocated? Is he fully aware of the desperate need that exists for these chairs, especially among the poorer sections of the population?

That need, of course, has existed for some time, and now it is to be dealt with. I cannot say to what extent the need will be met immediately, but we are expediting the provision of these chairs, and an order has been placed.

Could my right hon. Friend give publicity to the scheme as soon as possible, so that the hopes of many sufferers will not be doomed to disappointment?

I do not want to give too much publicity ahead of available facilities, but as soon as chairs are available I shall see to it that they reach the people who need them.

Homoeopathic Treatment

asked the Minister of Health what steps he is taking to ensure that under the National Health Service persons desiring to consult homoeopath or other special classes of doctor shall be enabled so to do notwithstanding the distance of such doctors from the proposed patient's home.

If he is on the medical list of an area, a homoeopathic doctor can—like other doctors—accept any person living in that area, however far away the person lives, provided he is prepared to visit that person at his home when necessary.

Does the right hon. Gentleman appreciate that the question of distance often affects the willing ness of such doctors who take on patients who desire this particular type of treatment? Has he considered the issue of mileage allowances to surmount that very real difficulty?

It would be impossible to issue mileage allowances to people who wish to attend a particular doctor. The cost of the service in such a case would be insupportable, as I think the hon. Gentleman will appreciate. It is, of course, possible for a doctor to take a patient anywhere he likes, although I appreciate that there may be people desiring homoeopathic treatment who will not readily find a homoeopath immediately available.

Will my right hon. Friend give us an assurance that the medical men practising homoeopathy for patients under the National Health Service are those who have registered qualifications and are on the Medical Register?

Homoeopathy is a form of therapy which is used by doctors on the Medical Register, and so it is accessible, in so far as facilities are available, to the whole population.

Hospital Staffs (Superannuation Scheme)

asked the Minister of Health if he is aware that although he has had circulated to each member of hospital staffs an explanatory booklet on the subject of the Health Service Superannuation Scheme, considerable confusion still exists in the minds of great numbers of the staffs; and will he arrange for a member of his permanent staff to be available to attend any conference arranged for the purpose of explaining in more detail the difference between the provisions of the new superannuation schemes and the scheme which previously operated.

I realise how necessary it is that all the staffs concerned should understand the provisions of the National Health Service Superannuation Scheme, and officers of my Department are available to attend meetings of employees in order to explain the Scheme in detail. In response to requests from employee organisations they have already attended a number of such meetings.

Would my right hon. Friend be prepared to arrange through regional boards for these conferences to take place for the whole of the hospital staffs in the several regions?

It may not be desirable to do this through the regional boards, but I shall arrange meetings of this sort wherever they are required.

Women Medical Students

asked the Minister of Health the number of women students now attending medical schools in Great Britain; what percentage they form of the total; and which medical schools have as yet no women students.

Approximately 2,875 women medical students, representing about 27 per cent, of the total, are now attending medical schools in Great Britain. There are no schools without women students.

Can my right hon. Friend say whether he contemplates any extension of those medical schools catering exclusively for women students, and whether he accepts in principle that as wide an expansion as possible should be made in this type of medical school?

The number of women medical students today is 27 per cent, of the total as against 15 per cent, in 1938, so the hon. Gentleman will understand from those figures that we have given every encouragement to such students. I cannot, of course, give an assurance that any of the schools exclusively devoted to women can have particular priorities; I would rather have more women students in all the schools.

Can my right hon. Friend say how many would-be women students are unable to take up this career because of the inadequacy of the medical training facilities provided for them?

I dare say that there is a considerable number, but there is also a considerable number of men. There is a restriction on the amount of accommodation now available and a long waiting list. I am doing my very utmost to extend the facilities for both men and women.

Why does not the Minister of Health set up a definite policy of in creasing the number of medical schools in the country? We need 80 instead of 42.

Precisely because there are all kinds of competing claims for the resources available, and I cannot give one claim a superior position to all the others.

National War Memorial (Proposal)

asked the Prime Minister whether he has considered the suggestion of the War Memorials Advisory Council that the national achievements and sacrifices in the war of 1939–45 should be visibly commemorated, and their suggestion that the site of a memorial should be either the area around Westminster Abbey or the area around St. Paul's; and if he will make a statement on the matter.

I have been asked to reply. Yes, Sir. The Government do not consider that there is at present any public demand for a national war memorial in physical form other than the Cenotaph. No scheme has yet been put forward which makes a wide popular appeal.

Even if, as a Dominion statesman remarked today, we won the war because we are an unimaginative people, does not the Lord President think that we have enough imagination to commemorate the heroism of those who won the war?

I can only say that the Government have given the matter very careful and sympathetic consideration, and others have, too. Nobody, as yet, has produced a scheme which would have the necessary degree of adequate public appeal to enable the proper funds to be raised. I have the impression that the general feeling is that the addition to the Cenotaph of the period of the second world war was the right thing to do.

Would the Lord President give an assurance that if a responsible body submits a reasonable proposal it will be given full consideration?

Yes, Sir. We will give consideration to it by all means, if it is a proposal calculated to effect an adequate public response.

What does the right hon. Gentleman mean by that? What sort of test is there that any particular scheme would have what he calls "an adequate public response?"

That is a matter of assessment and judgment in relation to the reaction created. There was a letter in "The Times" from very influential people urging this course; it had very little response, and we feel that there is not a big public opinion which wants something done, apart from the addition to the Cenotaph, which I have mentioned.

What does the right hon. Gentleman mean by "response"? Because there was a letter in "The Times" does that mean that there were not a lot of other letters in "The Times," or what?

There were no other letters except one which disagreed with that letter. I think that correspondence in "The Times" is a fair indication of the degree of public response. I cannot give a definition; it must be a matter in which everyone is entitled to his own judgment.

Will the Lord President give an undertaking that neither that committee nor the War Graves Commission will continue to take large tracts of open spaces, such as they propose to do at Plymouth Hoe, for the erection of ghastly memorials?

Does my right hon. Friend think that St. Paul's Cathedral would have been built if Sir Christopher Wren had waited for public opinion to express itself?

That is a bright observation, but it really does not help us in examining this matter.

Would not the best memorial to the victims of the last war be for us to keep out of another one?

Employment

Joint Industrial Organisation

asked the Minister of Labour if he will arrange for an investigation into the functioning of Joint Industrial Councils, Works Committees and Joint Production Committees, on the lines of the 1917–18 investigation with a view to obtaining a report on how instalments of industrial democracy could be introduced, and how workshop joint machinery functions

:I do not feel that in the circumstances of today there is need for a further investigation of the kind suggested. The Government will, however, continue to pursue its policy of giving all possible support and assistance to the two sides of industry in developing arrangements for joint consultation.

Miners (Control)

asked the Minister of Labour how soon he proposes to restore to the miner his right to leave the industry if wages and conditions are not satisfactory to him.

It is too early yet to say when it will be possible to dispense with the rule that men, age 18 to 50, employed in coalmining may not take employment outside the industry except through a local office of the Ministry or an approved agency.

Would not the Minister consider withdrawing this control, or advising the Coal Board to make an acceptable wages structure for the industry; and is he aware of the fact that if this control were withdrawn and a lot of miners went away from the industry, they could be replaced by the appeals that are being made at garden fetes by hon. Members on the other side for volunteers for the industry?

Do not these restrictions discourage recruiting? Is it surprising that young men are reluctant to enter an industry from which they are unable to go out?

There is no evidence to that effect. The Coal Board is working in co-operation with the National Union of Mineworkers, and we feel that an application would be made to remove this restriction as soon as it was felt necessary to do so.

Textile Industry (Recruitment)

asked the Minister of-Labour if he will make a statement on the cause of the failure of the recruiting campaign for the textile industry; and if he will now give consideration to special schemes submitted to him based upon favoured terms for undermanned industries.

At the rate of recruitment up to May of this year there would be a shortfall in relation to the manpower target, but the campaign has not been a failure. This shortfall has been mainly due to the non availability of suitable and accepted foreign workers. Improved methods of production plus the present flow of new workers enabled the cotton industry to reach its spinning target in June, and it is too early to assume that the end of the year production target will not be reached.

Is the Minister quite satisfied that in the wool textile areas there is sufficient accommodation to accommodate all the foreign labour that is required?

So far accommodation has not been a restriction on the inflow of foreign labour. Our difficulty has been to get the foreign labour that is acceptable.

Is not my right hon. Friend aware that he will get all the workers in the textile industry that he wants, if only he will give them decent housing conditions?

Can the right hon. Gentleman say if he has any further plans in view to improve the position?

Yes, Sir. This matter is under continuous examination, and we are, at the moment, looking al the American zone in Germany for the purpose of bringing over, I am told, thousands of single women, who could be brought over if we could get agreement about it.

Will the hon Gentleman look again into the question of houses, as his remark in reply to a previous supplementary question, that shortage of houses has no restrictive influence on geting people for this industry is really quite inaccurate?

I did not say that I said that shortage of hostel accommodation is restricting the inflow of foreign workers and not the shortage of houses make on the present position.

Would the hon. Gentleman be good enough to reply to the latter par of my original Question? I asked him if he would give consideration to special schemes submitted to him based upon favoured terms for undermanned industries.

I am obliged to my hon. Friend for one scheme which he has put forward. I was hopeful that we could adopt it, because I thought that it would have a very good influence, but after a thorough examination, we were compelled to reject it.

The hon. Gentleman said if we could get agreement there would be thousands of Germans who would come to this country. Does he mean agreement with the trade unions or with whom?

European Volunteer Workers

asked the Minister of Labour whether he is satisfied that he has adequate powers at the present time to direct European displaced persons to continue at the work for which they were allowed here; or whether he will take steps to obtain additional powers in this connection.

No European volunteer worker is allowed to change his employment without first obtaining the permission of my Department. I am satisfied that no additional powers are needed.

Manpower

asked the Minister of Labour whether the figures giving the distribution of total manpower in Great Britain in the Monthly Digest of Statistics for June show that out of a total working population of 20,350,000, 18,904,000 are employed in industry but that 3,181,000 are employed in the Armed Forces, the Auxiliary Services, the non-industrial Civil Service, the local government service, or are unemployed or have not taken up employment; and how these figures are reconciled.

There is no discrepancy in the figures. The heading "Total employed in industry" covers all the employment groups set out beneath it in the table, including national and local government service. To avoid any misunderstanding I have, however, arranged for this heading to be replaced in future tables by the words "Total in civil employment."

B.B.C. and Musicians' Union (Dispute)

asked the Minister of Labour if he has yet been approached by the B.B.C. or the Musicians' Union to secure the intervention of his Department to assist in the settlement of their dispute; and if he has any further statement to make on the present position.

I am glad to say that following discussions under the auspices of my Department the B.B.C. and the Musicians' Union have agreed that I should appoint an independent committee to make an award on the question of minimum fees for casual studio broadcasting, and to examine and make recommendations on other questions which the B.B.C. desire to be included in a comprehensive settlement. I have appointed the following to be the independent committee

Is my right hon. Friend aware that in the issue of the "Radio Times" published this morning there is a statement to the effect that the B.B.C. refuse to accept the principle of arbitration on questions concerning fees; and in view of the utter absurdity of this statement in the light of the Minister's encouraging reply to me this afternoon, could my right hon. Friend say whether the Director-General of the B.B.C. approached him or discussed this matter with him before issuing this belligerent and uncompromising statement?

It would be most unwise, I think, at this juncture if I disclosed whom I saw and whom I did not see. The fact is, I have not seen that article; but whatever may be its contents, the fact remains that the Ministry of Labour have induced the B.B.C. to change their grounds, and the B.B.C. have very gladly co-operated with us.

Would my right hon. Friend keep in mind the fees that are now being paid to those who broadcast, remembering that 12 months ago every subscriber had to increase by 100 per cent, the amount paid for a wireless licence? What I am concerned about is that the fees paid are higher than some dockers and miners get as a week's wages.

The House will appreciate that the Ministry of Labour are not concerned with the fees paid for broadcasting. What I am concerned about is to be careful not to say a word which might cause trouble in the negotiations.

Territorial Army (Recruiting Campaign)

asked the Minister of Labour whether, in view of the coming campaign to obtain an increased number of volunteers for the Territorial Army, it is proposed to place any restriction on the acceptance of men who are following any particular occupations.

No, Sir. There is at present an urgent need to obtain a large number of volunteers to enlist in the Territorial Army. These men will largely be required as leaders and instructors to prepare the way for the arrival of National Service men who will begin to come into the Territorial Army in 1950. The fact that such volunteers are in the Territorial Army will not interfere in peacetime with their civilian occupations. Steps will, however, be taken to identify volunteers who would be likely to be reserved from full-time service in the event of war, and such men, if so reserved, would not be called forward on mobilisation except for service in a Service trade appropriate to their qualifications and experience.

National Finance

Purchase Tax

asked the Chancellor of the Exchequer why Mr. F. R. Smith and family, who are visiting this country from Australia, were asked to pay 10s. 8d. Purchase Tax on personal items in their baggage, which arrived at Tilbury per s.s. Pinjarar, after they had arrived in this country from the United States.

The goods were imported as ordinary freight and the charge to which they were liable was assessed in the normal course. When it was ascertained that Mr. Smith was on a temporary visit to this country he was given the benefit of the concession which is allowed for the personal effects of such visitors, and the request for payment of the charges was withdrawn.

Does not the right hon. Gentleman realise that Mr. Smith had to spend a whole day arguing this particular point with the baggage agent in the City; that the official concerned at the Customs could not produce the regulation which demanded payment of this money; and is this the way to encourage visitors to come regularly to Great Britain?

Before the right hon. Gentleman answers that supplementary question, could he say what was the total amount involved?

The point at issue is not the total sum involved, but compliance with the law. I understand that this package came in as freight, and therefore was liable in the ordinary course to Purchase Tax. As soon as the facts were discovered the claim for the amount was withdrawn. I will look into this case, and if Mr. Smith was kept an undue length of time I will certainly do what I can to put it right.

While thanking the right hon. Gentleman, might I ask whether, in view of the number of people who come to this country by air, he will, where their luggage follows as freight, issue fresh instructions to the Customs officials to take care over that particular point?

Sterling Balances

asked the Chancellor of the Exchequer the total amount expressed in sterling of all arrangements similar to that made with the Government of India which have been entered into by His Majesty's Government, and which will in the end be represented by unrequited exports; and with what other countries arrangements of a similar nature have to be made in the future to resolve the question of outstanding sterling balances held in London.

On the scale of releases, I would refer the hon. Member to the answers which my right hon. and learned Friend the Chancellor of the Exchequer gave to the hon. Member for Bucklow (Mr. Shepherd) and the hon. and gallant Member for the New Forest and Christchurch (Colonel Crosthwaite-Eyre) on 13th July and 29th June. Since then details have been announced of arrangements with India and Pakistan. This brings the total of sums so far released for current purposes—excluding initial working balances—to some £90 million up to the end of 1948. In addition, from the middle of 1949 we have undertaken to release to India £40 million a year for two years, should the state of India's available sterling make this necessary. Such releases do not necessarily result in unrequited exports from the United Kingdom. I cannot say at present what further arrangements will have to be reached.

European Recovery Programme

asked the Chancellor of the Exchequer whether, in view of the grave implications which attach to Mr. Hoffman's exposition of the objectives of the European Recovery Programme at the meeting of the Council of the Organisation of European Economic Co-operation in Paris, he contemplates further consultation with industrial organizations in this country and the Trades Union Congress.

I am not clear as to the grave implications to which the hon. Member refers. The possibility of establishing special contacts with both sides of industry on matters concerning E.R.P. is now being considered in consultation with them.

But surely the hon. Gentleman must realise that contact of the nature suggested in the speech made in Paris by Mr. Hoffman presents very serious considerations for the industry of this country; and surely consultation with the organisations responsible for industry ought to take place at the earliest possible moment?

Well, we have decided on consultations on the lines which seem best to us in consultation with our own industry.

Savings (Accrued Interest)

asked the Chancellor of the Exchequer to what extent, in the accounts of service of the public debt, accrued interest on savings such as Post Office deposits and War Savings Certificates is taken into account.

The statutory account of the Post Office Savings Bank Fund shows each year the interest accrued in respect of the securities standing to the credit of the fund and the interest paid and credited to depositors. An approximate figure of interest accrued on out standing National Savings Certificates is published each year in the Finance Accounts and in the National Debt Return.

Civil Service (Equal Pay)

asked the Chancellor of the Exchequer when he now proposes to agree to equal pay for men and women civil servants.

The Government cannot take any steps towards introducing equal pay for men and women in the Civil Service so long as the considerations mentioned in the White Paper on Personal Incomes, Costs and Prices (Cmd. 7321) continue to apply.

Were those instructions not due to a fear of possible inflationary effects; and, now that the danger of inflation appears to be completely past, and we are even entering upon a deflationary period, would not this be an opportune time to render this elementary piece of justice to women civil servants?

I do not think that the opinion now expressed by my hon. Friend is generally held.

Does not my right hon. Friend agree that we cannot get the best work out of people so long as they are suffering from a real sense of grievance; and could he not give a slightly more cheerful reply, and give some sort of indication of when there might be a statement that people will be treated differently?

A statement has been made by my right hon. Friend to the effect that as soon as the situation allows this matter will be looked at again, and looked at favourably.

Will the Financial Secretary ask the Chancellor of the Exchequer whether he, in turn, will ask Mr. Hoffman if this would be permissible.

Territorial Forces' Property (Rates)

asked the Chancellor of the Exchequer the reason for the exemption of Territorial Army Association property from rating charge; and whether the Association will be put in a position to pay contributions in lieu of rates, as in the case of the Air Training Corps and similar organisations.

asked the Financial Secretary to the Treasury why property occupied by the Territorial Army Association is exempted from rating; and whether he will arrange for such properties to pay a contribution in lieu of rates as in the case of other Government property.

Property in the occupation of the Territorial Forces has been held to be in the occupation of the Crown, and, as such, exempt from rates by law. Contributions in lieu of rates have never been paid on properties occupied by the Territorial Forces, and in view of the recent financial settlement between the central Government and local authorities my right hon. and learned Friend is not prepared to reopen the matter.

Is not it very inequitable that no contributions should be forthcoming from these associations, when from similar organisations there are contributions; and is not there some undue burden on the local authorities concerned?

What is happening now is what has happened throughout, since the days of the Volunteers. There is no analogy between the Air Training Corps and the Territorial Forces; in one case occupation is by the Crown and in other cases it is not.

Is the Financial Secretary aware that the Lambeth Borough Council made representations on this subject; that it took three letters and a lapse of eight months before they received a reply; and is that the way to treat the representations of a responsible local authority?

I should have thought those representations ought to have gone to the Ministry of Health, not to the Treasury.

Will the Minister have another think about this, which I am sure is inequitable?

Anglo-U.S. Council on Productivity

asked the Chancellor of the Exchequer whether he will make a statement on the proposed establishment of an Anglo-American joint advisory council for British industry, giving its pro posed terms of reference and stating to whom it will report.

asked the Chancellor of the Exchequer whether he had consulted the T.U.C. General Council and the F.B.I, before announcing that an Anglo-U.S. joint advisory council for British industry will soon be set up.

asked the Chancellor of the Exchequer whether he has any statement to make on the function and composition of the Anglo-American advisory council.

I would refer the hon. Members to the statement which my right hon. and learned Friend the Chancellor of the Exchequer made yesterday. As they are aware, the matter is to be debated further today.

Advertisement ("Report to the Nation")

asked the Economic Secretary to the Treasury why there is no reference to the decline in coal exports as one of the reasons for the gap in our balance of overseas payments, in "Report to the Nation No. 21," why the reasons given appeared in some reproductions of the advertisement and not in others; whether the definition given to the term hard currency is in conformity with the Treasury and banking definition; what public advantage is sought in this series of questions; and what was the total cost of the advertising.

The suggested reasons for the overseas trade gap in "Report to the Nation No. 21" were all of a general character. The number of questions printed varied with the size of space available in different newspapers. The definition of hard currency is, in popular terms, adequate. On the remainder of the Question, I would refer the hon. and gallant Member to the answer which I gave in reply to Questions by the hon. Member for Altrincham and Sale (Mr. Erroll), and the hon. Member for Orpington (Sir W. Smithers) on 27th July.

Is it not a fact that the falling off of coal production is clearly one of the main reasons for the gap in our balance of overseas payments, bearing in mind that in 1938 35 million tons of coal were exported under private enterprise, whereas in 1947 only 1 million tons were exported, with an equal number of men and far more machines? In these circumstances, are not the questions extremely misleading?

It is the total exports which affect the balance of payments, and the total of our exports is 45 per cent, above the 1938 figure.

Berlin (Foreign Secretary's Statement)

( by Private Notice ) asked the Secretary of State for Foreign Affairs whether he has any statement to make on the international situation, with special reference to Berlin and the diplomatic and defence position of this country.

I am grateful to hon. Members who have accepted the request of the Government to avoid a general debate on the international situation at this time, and I would like to make a statement about the latest position regarding Berlin.

On 30th June I made a statement on behalf of His Majesty's Government setting forth the position which had arisen in Berlin and Germany generally. I referred to steps which had been taken to prevent us from exercising our rights and remaining in Berlin, and which interfered with our obligations to feed the population and provide for the industries of that city and the proper communication with our Forces. I indicated then that we could not submit to compulsion, either to yield up our position or to negotiate under duress.

I would like to set forth the steps which have been taken since that date to deal with the position in Berlin. We have, of course, had to resort to what is known as the "air-lift." This has been organised with energy and pursued with vigour, and steps are now being taken to secure still further increase. The airport at Gatow has been improved, and arrangements have been made for the use of the Havel lake by flying-boats. In the British zone a second airfield has been put into commission, and is already in use for traffic to Berlin. It has consequently been possible to fly into Berlin a considerably greater tonnage than al one time seemed possible. For this achievement the Military Governor, the Royal Air Force and the Occupation Forces deserve the greatest credit.

The United States Government are also dealing vigorously with the problem. The United States Military Governor has made a public statement to the effect that a large number of additional C-54 transport aircraft are now being made available to him. He believes that with this reinforcement it will be possible to deliver to Berlin, in conjunction with the Royal Air Force, some 4,500 tons a day. There are already considerable stocks of food in the Western Sectors, and deliveries on this scale will be sufficient to supply the population with essentials.

Questions have been raised about defence. It is well known to the House and to the country and the world that we have carried out a very considerable demobilisation of our war-time Forces. Since the end of the war we have turned the whole of our attention to the work of reorganisation and rehabilitation of this country and have been using our man power to overcome the ravages of war and to re-establish our economy, and make good our balance of payments. Whilst we recognise that the situation might become difficult, I must confess to the House that in our calculations we did not assume that the policy of our war time Allies might lead to a situation which would involve the use of force.

The situation which has now arisen has, of course, compelled us to re-examine the whole position. His Majesty's Government are fully determined to take any measures which seem necessary to meet the situation. I am sure, however, the House will recognise that it is not desirable that I should make a public statement now on the measures which are being taken or may have to be taken to meet future contingencies.

Regarding the immediate steps which have had to be taken, it is clear that such an air-lift on the scale I have described is already imposing an additional burden on our resources and has also imposed a Strain on the Armed Forces and interfered with the release of trained men in certain categories. This burden naturally falls mainly upon the Royal Air Force.

Members will have read in the newspapers that in a certain number of ground staff trades in the British Air Forces of Occupation and in this country, men who would in accordance with published release programmes have been eligible for release from the Royal Air Force in August and September next will have to be retained for a period after that date. This is necessary in order to make good gaps in these vital trades which have resulted from the rapid rundown of the war-time Forces under the age-and-service scheme of release.

To the extent to which comparable problems arise in the other Services, steps will be taken to extend similar measures to them as may be found to be necessary. In publishing the release programmes from time to time a warning has always been given that some measure of deferment might be required.

Finally, as regards the diplomatic position, the House will recollect that on 6th July we addressed a note to the Soviet Government, and on 14th July we received a reply, which has also been published. The great difficulty about the situation has been the hindrance to discussion caused by methods of duress.

As I informed the House on 22nd July, we are prepared to enter into discussions with the Soviet Government on the situation ins Berlin, and in fact we have never declined. But His Majesty's Government cannot be expected to do this under duress, that is to say, under the conditions which have been created by the Soviet Government. We are aware of the wide implications of the situation in Berlin, and we have consistently pursued a policy of attempting to settle progressively the difficulties which have arisen.

The Soviet Government have claimed that the introduction into Berlin of the currency of the Western Powers lies at the root of the present difficulties. If so, our representatives in Berlin are prepared and always have been prepared to enter into discussions on the question of currency. I would add that His Majesty's Government have never objected to the introduction of a unified or even a Soviet zone currency into Berlin, provided this is done under quadripartite authority. And it methods of duress are not used, we would be prepared to go on to discuss any other problems affecting Germany which may have been the cause of difficulties between the four Governments. These discussions might even be broadened to cover other problems as well.

As a result of the conversations in London over the past few days, general agreement has been reached with the United States and French Governments in regard to future discussions with the Soviet Government; and we will seek the earliest possible opportunity to represent to the Soviet Government our willingness to enter into discussions with a view to the progressive solution of the difficulties which have arisen.

It is unfortunate that at this juncture our Ambassador in Moscow should have been incapacitated by illness, and though he has recovered from his recent indisposition his doctors have advised him not to travel by air. I have therefore arranged for Mr. Roberts, who is my Private Secretary and has recently served in Moscow for nearly three years, to fly to Moscow. His experience will enable him to co-operate with the United States and French Ambassadors in handling this matter with the Soviet Government. He will act in conjunction with Mr. Harrison, who is Chargé d'Affaires in the absence of Sir Maurice Peterson.

In conclusion, I should say that the object of the diplomatic steps now being taken is to clarify the position, in order to ascertain whether there is any prospect of removing the obstacles to discussions taking place with a view to a settlement which His Majesty's Government desire and which, we hope, may lead to peace and security in Europe for us all.

May I ask the right hon. Gentleman whether he is aware that the general line and spirit of the statement which he has made will command the support of the Opposition party which I lead—the Conservative Party—and that this support will be given, within broad limits, in a manner most likely to be helpful to His Majesty's Government? It was in this spirit that we did not at all press our right to have set down a full Debate on international affairs for yesterday. But on the question of defence, to which the right hon. Gentleman has referred, I should like to ask him whether it is not a fact that we are now releasing about 20,000 men per month from the Army, apart from the specialists which he mentioned, and whether the places of these trained men and N. C. O. s will not be taken by conscript recruits? Is this not a very serious diminution of our modest military strength at this critical time?

I should also like to ask the right hon. Gentleman whether it may not hamper our policy of building up the defensive forces of the Western Union if, at the time when we are discussing with the French and Benelux countries how to make joint provision for their security and ours, we ourselves are actively demobilising? Finally, I should like to ask whether His Majesty's Government will not stop this process until at least the Berlin situation is satisfactorily resolved?

It is true that we are releasing these men, except in the categories I have mentioned. As to whether we shall be compelled to retain them, that is a matter which is under review by the Government, and which must be determined in a few days. It may be that we shall have so to determine it. As to the retention of men because of the Western Union organisation, neither I nor His Majesty's Government have ever confused these two issues. The question of rebuilding Western Union defences is quite separate and distinct from the Berlin situation. That is a measure for the permanent defence of the Western Union, and I do not want to confuse it with the dispute with the Soviet Union on this particular issue.

When it comes to the question of reorganising our Forces on a permanent basis in connection with Western Union, we should prefer to deal with that on its merits and on a permanent and not sporadical basis. We feel, as a Government, that if matters are to be pressed—which I hope they will not be—to the point where we have to exercise defensive measures in connection with the Berlin situation we should prefer to deal with that as one matter, and consider the permanent organisation of our Forces for the future as being in another category.

May I assure the right hon. Gentleman that we think the division he has made is quite reasonable, and that I had not suggested that the two topics should be intermingled, but merely that it might be discouraging to the efforts of other countries it, at this juncture, we were seen to be taking such a very marked step in the diminution of our very small Forces? I should like to ask the right hon. Gentleman this additional question: Whether we may understand that on all matters of military precautions His Majesty's Government are keeping in close contact with the Chiefs of Staff, with Field-Marshal Montgomery, who is reported in the newspapers to have visited recently most of the countries concerned.

I deprecate the mentioning of particular employees of the State in this House. It is obvious that the Government, as they do in everything else, must keep in touch with their advisers. I cannot be a party to departing from the Government's responsibility for our decisions. Whether it is Field-Marshal Montgomery or anyone else, I think it is known that they will submit their reports to us, and that we must take our decision. I do not want to begin a quarrel over celebrated generals who are dealing with these international problems.

I do not object to anything which the right hon. Gentleman has said, but the matter is very serious and might easily become one of life and death. Am I entitled to presume that close contact is being preserved between Ministers of the Crown, who are responsible, and their professional advisers, and that Ministers of the Crown are themselves assuming full and direct responsibility for the precautions and measures which are being taken, or not taken, at this moment?

We are certainly taking, if anything, rather more than the right hon. Gentleman did, the advice of the Chiefs of Staff. We are in very close touch with them. We do not assume we are the Chiefs of Staff, but we do accept responsibility for the advice we accept and act upon.

May I, on behalf of my colleagues, say that we are quite confident that every step that can be taken is being taken by the Foreign Secretary to secure an honourable settlement of this matter? I do not want to ask any question about the negotiations, but could the right hon. Gentleman inform the House of what the situation is now in the Western zone of Germany, whether there has been any development since the London Agreement? Has he any news from the Ministers President at Frankfort?

Yes, Sir, there has been a meeting with the Ministers President since the London Agreement. Certain very legitimate proposals and modifications which have been proposed to us are now being considered by His Majesty's Government. The Ministers President are willing to operate the scheme, and the details are now being worked out between us. After they had examined the problem they felt that modifications should be made, and we have them at this moment under active consideration.

Not in respect of the immediate negotiations about Berlin, but on the larger question, are we keeping in close consultation with the Dominions? Ar we keeping them fully informed, getting their consent to the drafting of future policy? In view of the unfortunate absence of our Ambassador to Moscow will not my right hon. Friend consider adopting the precedent of the valuable appointments made in the case of our last Ambassador to India, and nominate someone of outstanding position, quite free from party ties, to go to Moscow and negotiate at the highest level, in the way which was so successful in India and which might be equally successful in Moscow?

With regard to the consultations with the Dominions, we have been in the closest touch in discussing the whole of this problem, and when the Prime Minister of Australia was here he took the opportunity of going to Berlin and seeing for himself. All Governments with which I have been associated have kept in close touch with the Dominions. It is our obvious duty, and we have given all the information that can be given. With regard to the position of Moscow and India, I do not think there is any analogy. India did not put us under duress. We were carrying out a great constitutional change for India and we selected the best possible man we could to go there to assist. The House and the country appreciated what he accomplished. All we have got to do in Moscow is to remove obstacles, and with most profound modesty I say that the negotiations then will probably be conducted at the very highest levels.

May I ask the right hon. Gentleman a further question on defence? Is it not a fact that we have in this country in reserve terrific sources of skilled man-power for our forces but for the first time in this country's history there is no organised system for the reserve, because since the war we have preferred to wait until 1950 before introducing a new system for organised reserves? Will the right hon. Gentleman bear that in mind, and give the House an assurance that the Government have under consideration the importance of this matter?

There are substantial reserves in this country who came out of the war-time Army and they are all known. What we hope is that this will be settled and so allow us to carry on our policy of not having to recall anybody. I have not given up hope that this thing might be settled, and I do not want to go rushing into things when the diplomatic machine is at work. It might produce results.

My right hon. Friend has indicated that diplomatically he is acting in the closest consort with the United States of America. Might I ask him whether, in view of the defensive measures which he apparently contemplates, he has brought before the American authorities the fact that the burden of these measures should not fall largely on the British troops now in Germany?

Obviously this is a mutual thing, affecting three Governments. It is not a British problem exclusively and, therefore, the three of us are there with certain rights. Quite obviously I am in the closest possible touch with the United States on this matter.

Referring to the question of the hon. Member for North Islington (Dr. Guest), may I ask the right hon. Gentleman, having regard to the importance which the Soviet Communist Government attaches to pomp, panoply and prestige, if he would consider including in a delegation of this character someone more impressive than a civil servant, however able he may be.

This is a very simple issue. It is not a question of prestige at all. We have a Charge d' Affaires in Moscow, and it was unfortunate that he could not take that part in the discussions here as the Ambassador was. Therefore, I thought he would be handicapped if someone was not there to work in conjunction with him when we came to deal with the problem in Moscow. But I cannot believe that the picking of this person or that person for matters of this character affects the situation at all.

While expressing the very sincere hope that the conversations will develop and will succeed in getting a peaceful solution of the question, might I ask, in regard to the offer made by the Opposition, if the Foreign Secretary will take into account the notorious fact, to which the Minister of Health drew our attention at Durham, that the Tories half starved the people of this country and that their cant and hypocrisy—

With regard to the question put by the hon. Member for West Fife (Mr. Gallacher), I must confess that in dealing with him and his Communist friends one thing that burnt into my memory was the conduct of himself and his friends in 1940.

Would the right hon. Gentleman or his right hon. Friend the Minister of Defence tell us what steps are being taken to include in our defence proposals an energetic plan to guard against the possibility of large-scale parachute attacks on this country?

I must appeal to the House. If I go into details of any defence proposals I open up all defence questions. I have made the request that we should not be pressed for details. This matter is only one topic on defence; there are many others, and I would suggest that I be not pressed for answers on particular items which the Cabinet have under consideration.

I fully accept what the right hon. Gentleman has just said and have nothing to add to the various points of view that I have brought before the House. However, may I with your indulgence, Mr. Speaker, and that of the House put it on record as a matter of public importance that, while the Opposition and I as its leader have given and will continue to give full support to His Majesty's Government in the foreign policy we understand they are pursuing, we have no information from them about military aspects and consequently we can not in any way share their responsibility —I will not say constitutionally because that is not so—before the public and the nation, whom we are advising to support the Government's foreign policy, for anything which may occur in the sphere affecting military precautions?

If I might suggest it, no further questions should be put. They may do harm and they can do no good.

House of Commons Procedure (Count)

May I raise a point of Order arising from the point of Order which was made yesterday? It is whether you, Mr. Speaker, would, in fact, regard it as a prima facie case of breach of privilege if the Press, in reporting the case of an hon. Member demanding a Count, gave the name of the hon. Member who made that demand. I submit that it would be for the protection of the Press if you, Mr. Speaker, indicated that you would not regard it as a breach of privilege if the name of the hon. Member who took a step of that kind were published.

Let us wait until the name of an hon. Member demanding a count appears in the Press. I shall then be prepared to deal with the matter and say whether a prima facie case had occurred or not, but, as I said yesterday, I cannot deal with hypothetical cases.

Would you not, Mr. Speaker, reconsider this whole question? Private Members have lost Fridays and the Ten-minute Rule and they are being affected more and more by the Closure. Is it not desirable, therefore, that no encouragement of any kind should be given to an hon. Member to demand a Count no matter who happens to be speaking, and would it not be desirable for this matter to be reconsidered so that the demand for a Count would be stopped? Nobody with any self-respect would demand a Count.

The Count has nothing to do with me. That is a matter of our Standing Orders and the House can change those Orders or not if it so wishes.

Further to that point of Order. May I make this final submission? I hope you will have an opportunity to consider this matter again. It involves an exception to the general rule that the Press are allowed to report fairly and accurately the proceedings of this House. I suggest that if an hon. Member takes the step of calling a Count, which may mean a limitation of the opportunities of private Members already very limited, he should do so in the knowledge that he takes also the responsibility that his name may appear in the Press.

Adjournment (Summer)

Motion made, and Question proposed, "That this House, at its rising Tomorrow, do adjourn till Monday, 13th September."— [ Mr. H. Morrison. ]

We are glad that the Government have decided to adjourn and not to prorogue, for obvious reasons on which I need not enlarge, since they are present in the minds of everyone. The fact that we shall not divide against this Motion by the Government must in no way disguise the fact that we regard this Autumn Session for the purpose of an aggressive attack upon the Second Chamber as an absolutely needless burden, inserted for party purposes and for class and partisan warfare, and one which cannot in any way be a help or an assistance to our country. Therefore, though we do not vote against what the Government have decided in this matter—[HON. MEMBERS: "Why not? "] We do not want to occupy too much time—it must not be thought that we do not reprobate in the strongest terms the way in which the Government set party fighting before everything else.

I appreciate that the Opposition are not going to divide against the Motion and, of course, it would be very illogical if they did, because we are adjourning and not proroguing—not that that always stops a Division taking place. I do not propose to reply to the observations of the right hon. Gentleman. We shall, no doubt, in the Debate on the Address and on the Bill, have ample opportunities for further discussion. I am perfectly sure that we shall hear the extensive vocabulary and the emphatic oratory of the Leader of the Opposition. We shall all try to get some little rest in the meantime so that we may equal him in vigour, and in vocabulary as well.

Question put, and agreed to.

Ordered:

"That this House, at its rising Tomorrow, do adjourn till Monday, 13th September."

Ordered:

"That no Questions be taken on Monday, 13th September, or such other day as may be notified as convenient for closing this Session." —[ Mr. H. Morrison. ]

Sir Gilbert Campion (Retirement)

I beg to move,

Sir Gilbert Campion entered the service of the House as long ago as 1906. He went to the Table as Second Clerk-Assistant in 1921, became Clerk-Assistant in 1930 and Clerk of the House in 1937. In all he has served the House for 42 years and he has served us for 27 years at the Table. Of those 27 years at the Table, he has been Clerk of the House for the last 11 years.

When I first entered the House Sir Gilbert was the Second Clerk-Assistant, the No. 3 at the Table. Therefore, he was the Clerk who dealt with Questions handed in by Members. I have a memory, which he does not altogether confirm, of developing, as a young Member, a great fear of going to the Table and handing my Questions in. I did hand one Question in, if I remember rightly—and Sir Gilbert is not sure that I do—wherein I made implications or insinuations against people and as to which I wished to get confirmation and information. Sir Gilbert said to me: "Are you sure that these implications are accurate and true? "I said" No, I am not. That is why I am putting the Question, to find out." He said: "Well, you cannot make implications and insinuations against people unless you take responsibility for them and make a pretty clear accusation in the Question itself." I thought that that was unfortunate, and went away. In another fortnight I had a similar Question that I wanted to hand in. This time I was pretty sure of my facts and I alleged the facts in the Question on that occasion. The Second Clerk-Assistant said: "Mr. Morrison, are you sure that these allegations are true?" "Oh yes," I said, "quite sure that the allegations are true." "Then," he said, "You don't need to ask the Question."

I am not sure that the Clerk would confirm my exact memory of those things, but that is how they impressed them selves upon my mind. Thereafter I tried to put the Question on the Table and get away from the Table, but that was not always safe, because they have a little card whereon Members are asked to come to the Table, and then you go through the third degree again. I have no doubt that the experience which I have had other Members have also had. Who knows whether somebody here may know the nearly 40 rules which govern the put ting of Parliamentary Questions? I do not—not yet.

On Parliamentary procedure Sir Gilbert is the acknowledged authority, both in this country and abroad, and he has made valuable contributions to the literature of the subject. In 1929 he wrote that book, which most of us have read, "An Introduction to the Procedure of the House of Commons," which, I am inclined to think, is the best workable book in regard to Parliamentary procedure. He has also edited the 14th—which is the current—edition of Sir Thomas Erskine May's "Parliamentary Practice." He was entirely responsible for the new arrangement of this well-known treatise on Parliamentary procedure, which involved, in effect, the re-writing of the whole work. It should be a great comfort to the Opposition to know that that great volume which closely affects our procedure, and which is accepted as the great authority on our work—and which in a way is a sort of unofficial part of the British Con stitution—this new "Erskine May" is a great example of private enterprise having great consequences upon our public affairs, for it was entirely a private enterprise venture.

The Clerk of the House was Secretary to the Conference on the Reform of the Second Chamber, in 1918, called the Bryce Conference, as Viscount Bryce was the Chairman. The Report in referring to Sir Gilbert said:

I know that it will be the case that all of us who have served on the Committee of Privileges, and certainly I myself as Chairman, enormously appreciate the wise advice we have had from Sir Gilbert on what is I suppose nearly a record number of Privilege cases which have been thrown up during the proceedings of this Parliament, and we are all exceedingly grateful to him for the advice he has given in cases of extreme complexity.

The activities of Sir Gilbert extend beyond the United Kingdom. For the last two years he has acted as President of that section of the Inter-Parliamentary Union which is concerned with Parliamentary procedure, and the members of the Union are grateful to him.

The House will be interested and I think pleased to hear that Sir Gilbert Campion, with your countenance, Mr. Speaker, is about to make a tour of the Dominions in the Eastern Hemisphere to study the Parliamentary machines of the Dominions at work.

In the Eastern Hemisphere. The Western Hemisphere is unfortunately out of bounds owing to the scarcity of dollars. Sir Gilbert is undertaking this tour, which is of great public interest, at his own wish at his own expense. Only the cost of his secretary will fall upon public funds. I am bound to say that I think the House will enormously appreciate his wish to meet his own expenses, but I should add that I have a little feeling that it is not quite fair that on this task he should be meeting them. [HON. MEMBERS: "Hear, hear."] As one has an expression of opinion from the House I think one might see if one cannot convey it to the Chancellor of the Exchquer. [HON. MEMBERS: "Hear, hear."] The whole House will be with him in his search for instances where young legislatures have improved upon our own procedure and will hope that his latest honorary services will prove to be by no means the last of the many which Sir Gilbert has rendered to the House.

We are all very much indebted to him for his wise judgment and shrewd common sense. The Clerks of the House are on duty at all hours of the day and night according to our need, and we have always admired his calm and patience at all times. He has been our guide, philosopher and friend, always ready to assist hon. Members from his great knowledge of Parliamentary procedure; and he has always been the servant of the whole House and hon. Members, never the servant of the Government and never the servant of any political party. I am quite sure that we are all sorry that he should be departing from his post and leaving us, and I know that the whole House would wish me to extend to him our very best wishes for happiness and good health in the future and our sincerest thanks for the distinguished services which he has rendered to our Parliamentary institutions for many years.

I have much pleasure in seconding the Motion which the Leader of the House has just com mended to us.

The long services of Sir Gilbert Campion are part of the life and recollections of all who have lived long in the House of Commons. I thought the right hon. Gentleman was expressing all our views when he set forth in such happy terms what we all feel upon this subject. The Clerks at the Table are held by all hon. Members in the highest regard and in many cases with feelings of friendship, and this is because they are the servants of the House as a whole and could by no possible means become its masters.

No one has made a greater contribution that I can recollect, having served in this House for getting on for 50 years, or a year or two short of it, than Sir Gilbert Campion. I am very glad indeed that he is going on this tour to the Parliaments of the Eastern Hemisphere, and I trust that when the right hon. Gentleman makes his representations to the Chancellor of the Exchequer upon the subject, which is certainly of public importance, he will not necessarily blot out, on so small a point, any visits which it might be thought desirable in the interests of completeness, for Sir Gilbert to pay to the Western Hemisphere.

I was very much struck by the lapse into autobiography in which the right hon. Gentleman indulged and how he was guided and warned by Sir Gilbert Campion of the great importance of ascertaining the accuracy of one's facts before making statements of an invidious or detrimental character about any one. We all feel that in the closing years Sir Gilbert must have been much satisfied by seeing how greatly his pupil had benefited from his instruction.

It is not only in the carrying out of the long routine of the House of Commons and the innumerable points of procedure and all the personal contacts which this necessitated that Sir Gilbert has been an example to all who succeed him. He has in addition, made very important contributions to, I will not say the law, but what we may call the common law practice of the House of Commons in matters of procedure. I was brought up years ago on Erskine May, but, without any disrespect to those who have left their mile stones behind them, I think, the new edition might well be called, without any breach of copyright, "May and Campion" because it has been brought up to date and very greatly enriched.

Although I do not approve of all the changes which have occurred in my lifetime, I still consider it is very desirable that this vade mecum should be placed before hon. Members and be at their disposal to help them in their daily work and that it should deal with the modern House of Commons practice as we now know it. In addition, he has written a very valuable and suggestive book—I am sure the Father of the House will agree with me on this subject—styled with great modesty "Introduction to the Procedure of the House of Commons" which may well be commended to the constant and recurring study of old Members as well as of new ones.

The Clerk of the Table has left his Office and leaves our House. I am sure that wherever he goes, he will champion those Parliamentary rights and customs which he has seen and helped to put into exercise here at home in the cradle and citadel of the Parliaments of the world. We wish him the best of good fortune and happiness in his future life, and we feel quite sure that the work he has done, both as a writer on procedure and as an officer of the House, constitutes a definite contribution to the maintenance of public and Parliamentary Government in this island.

I should like to be allowed in a few words to support the Motion which has been proposed, and to endorse the tributes which have already been so well paid by the Lord President of the Council and my right hon. Friend the Member for Woodford (Mr. Churchill). It is always a poignant moment when one has to say goodbye to a friend, but particularly is it so when one has known that friend for a considerable period, and when one has had from him so much help and guidance throughout the period one has known him.

If I may single out one outstanding characteristic of Sir Gilbert Campion, it is his readiness at all times to assist every one of us, and being always ready with wise advice to guide us in the intricacies of Parliamentary procedure. Sir Gilbert is a great scholar, a man of many parts, not the least of which is that, even in his last year here, he has taken away with him one of the coveted prizes of Parliament in another field.

Reference has already been made to his great work, not only at the Table but upstairs in the various Committees. With regard to Parliamentary procedure, there is only one word that would describe his knowledge—encyclopaedic. I agree with what has been said by the right hon. Member for Woodford, that Erskine May might very well have another title added to it. For my part, and I believe for all those of us who now have to look at that book, we have always regarded Sir Gilbert as Erskine May itself.

One other thing. It was perfectly obvious that not only has he had throughout his career a great respect for Parliament and for the procedure of this House, but he has an intense love of this House, and has done a great deal to maintain its dignity and to enhance its reputation, for he is now recognised in other democratic countries as being an authority upon democratic institutions, and his learning and advice have been available to most of those new democratic institutions which have had to be founded upon the Continent. In addition, he has been in close contact with all those Parliaments of the Commonwealth which have derived their authority from this House, and I also welcome the fact that he intends to pay them a visit.

On behalf of myself and my colleagues I want to tender him as he goes our most sincere and warmest thanks for all the help he has given, and to wish to him and Lady Campion long life and happiness in this period of leisure which has now come to him.

4.24 p.m.

I know the House will bear with me if, on behalf of the National Liberals in this House and also on behalf of our predecessors, I join in the tributes which have been paid today to Sir Gilbert Campion. I would particularly express our great appreciation of all the courtesy, the kindness and the help which each of us has invariably received when we have had occasion to consult him on any matter which was causing us difficulty. We wish Sir Gilbert every possible success and happiness in the trip which he will make to the Dominions.

Question put, and agreed to, nemine contradicetite.

Resolved:

"That Mr. Speaker be requested to convey to Sir Gilbert Francis Montriou Campion, G.C.B., on his retirement from the Office of Clerk of this House, the assurance of its sincere appreciation of the distinguished and outstanding services which, by his pen, his ever-ready advice and his great knowledge of the law and custom of Parliament, he has rendered to this House and to all its Members in the conduct of their business during upwards of forty-two years, of which twenty-seven years have been spent at the Table."

Orders of the Day

Place of Sitting

Message from His Majesty [ 28th July ] considered.

4.25 p.m.

I beg to move,

"That Standing Order No. 113 (Place of Meeting of House on first day of Session) be repealed."

This matter can be dealt with shortly. The House will be aware from the terms of His Majesty's Message, which was received yesterday, that it is not convenient for the House to sit in St. Stephen's Hall because of repairs to the roof which will not be completed for some time. Therefore, His Majesty has announced his intention of opening the new Session in the present Parliament Chamber.

That is really this one, I think—yes, it must be. [HON. MEMBERS: "No"] I think it is this one. Anyway, we will see that the proper directions are given at the time. In recent Sessions we have vacated this Chamber and sat temporarily in St. Stephen's Hall for the Prorogation, and for the opening of Parliament. We have consulted the authorities of the House, who recommend that the proper course to take is to repeal Standing Order No. 113. I am sorry that one of the Standing Orders which we consolidated yesterday should be repealed the day after, but it is inevitable in the present circumstances.

I am now informed that the Parliament Chamber about which the right hon. Gentleman inquired is the present small Chamber used by their Lordships.

I am very glad that I put the point because, after all, it is most important that we should know where to go on that occasion. The right hon. Gentleman, in spite of all the intense concentration he has given to this topic, was going to ask us all to assemble in this Chamber which I gather will be occupied by His Majesty himself, whereas I take it that it is our duty to proceed to the small Chamber in which the House of Lords now so well discharges its functions. I am not making it a controversial matter as to where we go, but I feel the Government should be clear in their own minds and should be able to give clear guidance to the House.

I would like to ask a question about this because I .was in some doubt when I read the Message. I thought it meant at first that His Majesty was to open Parliament in the House of Commons and, as is well known, His Majesty has never been in the House of Commons since the days of Charles I. That, I understand, is cleared up by the fact that the other Chamber is to be used for this purpose.

My other point is this: last time we met in St. Stephen's Hall and we were summoned to this House, where His Majesty opened Parliament. It says at the end of this Message:

I should not like my hon. Friend to get it wrong, and I will ask the Whips to give all the advice and assistance they can so that nobody gets lost on the day. Broadly speaking, we shall meet in the small present Lords Chamber, the opening of Parliament will be in this Chamber, but by that time it will have become the House of Lords, suitably transformed, and His Majesty will open Parliament in this Chamber. [ Interruption. ] For the short Session His Majesty will open Parliament in the small Lords Chamber and later in the day we shall meet here. It will all be suitably circulated by the Whips and I am sure they will get it firm and accurate because the last thing we would like on such a day would be for the Leader of the Opposition to find himself in the wrong place on the opening of Parliament.

I really must express, if I may be permitted to do so, my sympathies with the right hon. Gentleman at the almost pitiable condition to which he has been reduced at the end of this long Session and by, no doubt, the weather. I commend what has just occurred—what has been told to the House—as a very good example of the inveterate inefficiency which at every point and at every stage prevents His Majesty's Government from dealing in a plain and simple manner with the many issues which are put before it. Fancy using all this constitutional machinery to deprive the House of Lords of their rights under the Parliament Act, and not even being able to unfold in a clean and satisfactory manner the arrangements for the meeting of Parliament and the opening of Parliament for the special Session which has been called.

The right hon. Gentleman succeeded in making, I should think, at least four specific mis-statements on this most simple question. I do not know what he has been passing his time in doing. He must have been endeavouring to advise his right hon. and learned Friend on some means of getting out of the scrape into which he has just got the Government. However that may be, this is a very bad and typical example of the kind of administration under which we now suffer.

Question put, and agreed to.

Ordered:

"That Standing Order No. 113 (Place of Meeting of House on first day of Session) be repealed."

Gas Bill

Lords Amendments in lieu of certain of their Amendments to which the Commons have disagreed, considered.

CLAUSE 25.—(Compensation to holders of securities.)

The Lords do not insist on their Amendment in page 29, line 14, to which the Commons have disagreed, but pro pose the following Amendment to the Bill in lieu thereof

In page 29, leave out lines 40 to 46 and insert:

"Provided that a quotation appearing in any of the said lists shall be disregarded for the purposes of this section unless business is recorded in that list as having been done at any time during the six months immediately before the date of that list."

I beg to move, "That this House doth agree with the Lords in the said Amendment"

We have just said farewell with deep regret to a great friend and a distinguished public servant. We now say "goodbye" to the Gas Bill with, perhaps, rather different feelings. Prolonged farewell scenes are rather painful and, therefore, I will be very brief. There are three Amendments in all and perhaps it would be convenient if I referred to all three at the same time.

All these Amendments deal with points raised by the right hon. and gallant Member for the Scottish Universities (Lieut.-Colonel Elliot) in the course of a speech on Monday last. They are all points on which we have recognised that there were substantial arguments on the side of the Opposition. They were border-line matters and we have finally decided to accept the propositions put forward in their Lordships' House.

The short controversy which the House have just had may perhaps lead us, happily, to the present scene, which is one of reconciliation rather than of anger—by a singularly happy coincidence, a reconciliation between the two Chambers of this Realm, who fell into some dispute over this Measure. They are likely, we understand from the Government, to fall into a more serious dispute on other matters at a later period. But on the present occasion this is a matter of reconciliation—

We have not, of course, got as much as we wish or, indeed, as we thought right that the public should have. Particularly is this so regarding the period of three months for which we pressed in the first Amendment. That period has now been fixed at six months. Consequently, quotations on the Stock Exchange list as far out of date as five and a half months may still be taken into account when determining the compensation which is to be given. We think that is a matter of injustice and hardship and also, indeed, an unbusiness-like procedure. But, still, it is undoubtedly a step in advance of the original proposals.

The other two points which are mentioned here are, as the Minister of Fuel and Power has said, points which were urged by the Opposition when the Bill was under consideration, both in Committee and in its final stages on Monday. We are glad that the Government have found it possible to make modifications in the sense of our representations—not in any way because it is a victory for one side of the House or the other, but because we think it will lead to a more just application of the Measure which is about to be passed into law.

Finally, though, as the right hon. Gentleman has said, long leavetakings are painful, I would only say that I think everybody regrets that on this occasion one who has been more closely connected with the Bill than any other person except the Minister himself—I refer to my right hon. Friend the Member for Bourne mouth (Mr. Bracken)—is still precluded by an unfortunate and quite unusual rise in his temperature from being here. He, being one of the coolest and quietest of men, but having found his temperature slightly elevated, thinks it would be un wise to enter upon debate in the House of Commons under those conditions. He withdraws himself, therefore, from our councils but he asks me to say that he also believes that these Amendments are an improvement in the Measure as a whole and that he also would commend them to the support of my hon. and right hon. Friends on this side of the House.

Question put, and agreed to. [ Special Entry. ]

The Lords do not insist on their Amendment in page 31, line 22, to which the Commons have disagreed, but propose the following Amendment to the Bill in lieu thereof

In page 31, line 29, leave out" as far as may be to" and insert "to all relevant factors including as far as may be."

Lords Amendment agreed to. [ Special Entry. ]

CLAUSE 26.— (Increase of value of securities of companies suffering loss of revenue from war causes.)

The Lords do not insist on their Amendment in page 32, line 30, to which the Commons have disagreed, but propose the following Amendment to the Bill in lieu thereof

In page 32, line 33, leave out from beginning to end in line 35 and insert:

"(a) the total sales of gas by the company in the year nineteen hundred and forty-three or in either of the two succeeding years as shown in the."

Lords Amendment agreed to. [Special Entry. ]

Consolidated Fund (Appro Priation) Bill

Considered in Committee and reported without Amendment.

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

Anglo-U.S. Council of Productivity

4.40 p.m.

It became quite obvious yesterday afternoon that there was keen anxiety in all parts of the House about the statement concerning the Anglo-American Council of Industry made by the Chancellor of the Exchequer. I think he was himself chiefly to blame for the very hostile reception the statement had from both sides of the House. In the first place, I think the method was unfortunate from the beginning. The habit of announcing new pieces of policy at Press conferences is one which does not usually commend itself particularly to this House.

While we all admit that Press conferences are of the greatest use in educating public opinion and so forth, we do not think they are suitable media for announcing the policy of His Majesty's Government and we consider that those announcements should be made to us in this House first. That is common ground. I understood from the Chancellor yesterday that no statement at all would have been made by him except to the Press, unless we had insisted upon it. He even showed some reluctance to be here today at all and said he had a very important engagement—[HON. MEMBERS: "Last night."]—I do not know whether I am correct, but that important meeting may have been to find out which seat he was to contest in Bristol, and, we hope, to lose—but that by the way.

May I ask when it was decided that the Treasury and the Chancellor of the Exchequer should make pronouncements about industry in detail? I am aware that the Chancellor of the Exchequer has, of course, an overriding mandate about our economic affairs, but I do not think it a good practice in a matter of detail concerning industry such as this that an announcement should be made by the Chancellor of the Exchequer to the Press. I have seen many reports on the machinery of Government, none of which recommended this procedure. I fear that very great inefficiency, overlapping and friction will be caused by this intrusion on the responsibilities of other Departments by the Chancellor of the Exchequer and the Treasury. Some of the resentment of the House was due to the method of announcement and a great deal of anxiety was also caused because we do not yet know what the Chancellor really intends.

I do not think we yet know what he intends for the simple reason that I do not think he knows what he intends. He was deplorably ill at ease yesterday after noon for someone who is accustomed to, and who usually excels in, trying to make confusion sound lucid. On this occasion he was called upon to explain a muddle of his own and not to cover up mistakes of his colleagues, and he did it very ill. I think the method was very unfortunate and without question, the Chancellor of the Exchequer was absolutely confusing and obviously confused.

The really vital question is, what are the objects of this Anglo-American Council and what, if I may so term them, are the terms of reference? Are the Council to range over the whole field of what the Chancellor was pleased to call yester day the two industries? He explained that phrase by saying he referred to American industry and British industry. In this context it would be polite to call such an approach to the subject academic, but nearer the truth to say that it is highly amateurish. If the Council have to range over the whole of British industry, they will have perforce to deal with the subject on the broadest lines and to reach conclusions all of which are known to hon. Members before the Council starts. I will go so far, for the purposes of illustration, to give some of those conclusions to the Chancellor of the Exchequer this afternoon.

We all know what the four, or five, fundamental problems are which will face British industry in the future. We all know the difficulties British industry has to overcome in the future if the production we all desire is to be attained. The first concerns the subject of raw materials. There is no industrialist anywhere, certainly not in this House, who does not know that one of the most critical businesses which faces us every morning is to try to ensure a free flow of raw materials to our factories, without which no efficient production is attainable. This is not the place to express my belief that some of the interruptions in the free flow of materials are due to inefficient bulk buying by the Government and the inefficient allocation and over-centralisation of detailed functions. This is not the place to go into that question. I am trying to be as uncontroversial as possible and to state the facts.

After the flow of materials, the next matter which will face British industry in future is the price of coal. Again, I do not wish to discuss the reasons why the price of coal is where it is today. I am only stating the fact and I want to emphasise that, for an exporting country whose business is chiefly to buy raw materials from other people and work them up into manufactured articles, we shall be in a very precarious position in 1948 if our only indigenous raw material, and that the most important industrial raw material, is to continue to sell industrially at about 43s. a ton at the pithead. If anyone wishes to make comparisons, let him look at the price at which the Brokenhill Proprietary buy their coal in Australia, for example. Forty-three shillings a ton for coal at the pithead, is, for an exporting and entrepreneur country, one of the most severe handicaps of which I can think. It may be thought that some useful work can be done by these American experts in inquiring into coal production, but I understood from the Chancellor of the Exchequer that this would be outside their terms of reference.

Another matter is that there are some industries, I think a small number, which are not so well equipped mechanically as their foreign competitors. We would all agree on that. Generally, that sector of British industry is the one most affected by Government regulations—quite proper regulations during the war—and the concentration of industry in the cotton textile trade is no doubt still one of the limiting factors in getting that production going at full bore. If it is wished to carry modernisation of industry in this country still further, the right way to do it is surely by giving the industrialists every inducement to re-equip. But what do the Government do? They actually tax profits retained in the business, at the same rate as they tax profits distributed to the shareholders.

That is slightly inaccurrate. They tax profits at the same rate. This fund of profits retained in the business is the principal source of financing modernisation, apart, of course, from appeals to the Capital Issues Committee. This seems to be in direct contradiction to the attitude taken by the Government at other times.

Another matter which any Committee looking over the field of British industry are bound to consider, is that of restrictive practices. At the moment I do not think restrictive practices on the employers' side are a serious bar to industrial production. I am not trying to discuss the question of whether they have been, but at the moment the inducements to produce and the ease at which most products can be sold, lead every employer to strive to get higher production. But be that as it may, no inquiry on a broad scale into British industry can avoid a discussion of restrictive practices, in particular the restrictive practices upon a man's output, by hand and brain, imposed by trade unions and trade union rules.

The House will not think that I am here trying to introduce a bone of contention. I am not doing that at all. These restrictions have been introduced in the past as a protection against the imminence of unemployment and they are completely and absolutely unsuited to our economic position today. Any high level council which is to inquire into British industry cannot shirk this question—Is British industry going to be as buoyant as it should be, if we continue to have a large number of obsolete restrictions upon the output of the individual in industry? On this question is it suggested that we are to have American trade unionists over here to advise us on how trade union relations with industry should be conducted? We require to have a full explanation of that aspect of the subject from the Chancellor this afternoon.

The next thing at which one looks in regard to British industry is the high—that is a great understatement—the penal, rate of taxation. It is absolutely impossible for a country to have a buoyant production when it is taxed at the rate at which we are now taxed. First, this taxation removes from the public savings which would otherwise have been largely invested in the modernisation and expansion of old industries and the establishing of new ones. Nearly all the money that used to go into those projects is now spent in other ways by the Government. No doubt some of them are beneficial ways, but I take leave to doubt whether others of them or even the majority are. We cannot have buoyant industrial production and tax the country at the rate at which the Government now tax it. That is impossible. The other side of the penal taxation, and particularly the penal taxation of the successful, is inducing day by day a more lethargic attitude towards hard work, risk and enter prise—a far more lethargic view than we have ever seen in this country before.

Then, of course, there is the matter of how Socialist policy and the nationalisation of the common services affects industrial production. It really should not be possible for any committee, to use a vulgarism, to "duck" that question, which lies right at the root of every industrialist's problem every morning. The Lord President of the Council says that 80 per cent, of the industries of this country are to be left in the hands of private enterprise. No doubt that may be true in a specious way, but if 80 per cent, of industry is in the hands of private enterprise, the House will remember that it has to rely upon public enterprise for all the common services—for its coal, electricity, transport, and soon, too, for its gas, and, if the Government have their way, for its iron and steel. It is like saying to a man "All your food, clothing and fuel and your house you owe to me, but of course you are perfectly free to do what you like." It is quite impossible for a high-level council of about 12 people to discuss British industry without facing up to these questions, and the last one is the most important of all. These are, I think, the broad conclusions which any council are bound to reach and upon which they are bound to make recommendations.

It may be that the Chancellor of the Exchequer has not this kind of council in mind at all. If he is merely aiming at increasing the exchange of technical information—and I ask the House particularly to mark the word "exchange"—let us be told in much clearer terms. If the Chancellor wished to promote the free exchange of technical information, he could not have attempted to do it in a worse way than by making the announcement which he has made. He has aroused resentment in British industry, has caused anxiety to trade union leaders and has generally bedevilled the very cause which he was trying to promote.

On this particular point, I am still very much at sea. I could understand the Government trying to encourage this exchange of information, for example, by being very ready to give exit permits and slightly more liberal dollar allowances to those who wish to go to study American methods. But I emphasise to the House that I do not think that we shall get in any part of the industrial field satisfactory information or satisfactory relations between one industry and another unless these things are reciprocal. There is no suggestion that I have yet seen in the Chancellor's statement that there is anything reciprocal about these arrangements.

I have myself a wide experience of the exchange of information. There must not be a one-way traffic. Is it really beginning to be thought that we have nothing to offer the United States in the way of technical information? I would remind Members that very few delegations have gone from this country to America to find out how to build ships in peace time or how to operate them after they are built. Let us get away from the idea which the Chancellor has, I think, unwittingly put about that British industry is inefficient and can only rise to a position of efficiency by American advice.

The right hon. Gentleman knows quite well that I have never said anything of the sort. I have emphasised exactly the opposite and the right hon. Gentleman is only doing this to try to make mischief and malice.

The Chancellor having specially referred only to expert advice from America, and not having said in his original statement that we were to exchange information, is entirely to blame if we mistake the purpose of his arrangements. In any case the exchange of technical information cannot, except in the mentality of an academic industrialist or an eminent counsel, be carried out by a committee of a dozen American experts. It can only be handled through the thousand and one industries being given encouragement to send their engineers and production experts back and forth and by trying to get more co-operation from the Americans by making available to them such industrial information by which we can be of help. I think I am right in saying that the Chancellor has, so far, given no hint that this Council is to be engaged in the reciprocal exchange of information.

There is one other point, namely, that up to date, unless the Chancellor can correct the impression today, great damage is being done to the British export trade by those remarks. They will be used, I am not saying by the Americans particularly but by foreign salesmen all over the world—[An HON. MEMBER: "What remarks?"]—the remarks are that American expert advice is required if British industry is to be raised to its highest productivity. Every salesman of American equipment will say that the Chancellor, confesses that without American advice, British industry is inefficient. It will be made use of, and I hope that the Chancellor will correct that impression this afternoon. I have reason to believe that "The Times" was on the right lines this morning when it said that this proposal originated with the natural and understandable desire of Mr. Hoffman to be able to have some report of British industrial recovery when he has to give an account of his stewardship in March. "The Times" said:

I cannot escape the conclusion that the continually repeated suggestion that there are large portions of British industry which are inefficient is put out by Ministers in order to district attention from the tender spots in their own record—the inefficiency, for example, of nationalized industries, the restrictive effects at this moment of some trade union practices, which are certainly—

Will the right hon. Gentleman tell me one trade union which since the war, has asked that its pre-war restrictive practices should be given back to it?

That is a slightly different question. I would reply by asking the hon. Member to look at the conditions under which a linotype machine is operated in the United States and the conditions imposed by the Minister of Labour's own union in this country. He will get the answer to his question from that examination. But it really must be common knowledge, and I have tried not to raise heat on this matter. The other thing is, of course, the deadening blanket put upon enterprise by taxation, which cannot possibly be sustained by a country without causing a lack of buoyant production. We shall require a great many assurances before we accept the view that the Chancellor of the Exchequer has not done a great deal of harm by these ill-considered proposals which were announced to the Press before any opportunity was given for discussion in this House.

5.0 p.m.

I was somewhat astonished at the language which the right hon. Gentleman the Member for Aldershot (Mr. Lyttelton) employed. This is a matter upon which this House might expect some statesmanlike departure from day-to-day party warfare. On the working of these arrangements which have been made with the United States depends the future of our country and I really am surprised that the right hon. Gentleman who has held responsible positions—as President of the Board of Trade, as Minister of Production during the war, when he must have worked in the closest co-operation with American industry—should use this occasion to seek to sow dissension between those who must work with a common purpose if Europe is to survive the dangers which confront it.

What is all the bother about? All of us who can see beyond the ends of our noses, rejoice that these E.R.P. arrangements have been made. There is no other path to survival; and there is nothing to be ashamed of. We have spent our sub stance in the defence of Britain. We have spent more than we can afford, and we must have a breathing space before we can fully recover. America knows that they are the beneficiaries of our effort a; much as we ourselves, and I think it is indeed foolish to take the attitude that this continuation of the economic co-operation of the war is, in some way, an intolerable patronage which we cannot endure. Is it not a fact that we have much to learn from American industry? It is just as true that American industry has much to learn from us? It is the history of British industrial enterprise that we have drawn on the experience of foreign nations. In our textile industry, in our leather industry, in the making of precision instruments, we have drawn greatly upon the technique and skill of foreign craftsmen, and if we are to maintain that very special place which British industry commands, we must continue to enrich our own excellence by drawing upon the knowledge and experience of others.

Nobody has suggested, certainly not the Chancellor of the Exchequer, that this is entirely a one-way affair. He has entered into an arrangement whereby there can be the facilitating of the exchange of information on technical development. It is of paramount importance to increase the productivity of British industry. Unless we can do that, American aid will have been in vain, because when we come to the end of the period we shall be no better off than before. I believe that unless we use this period to increase our own productivity and close the gap in our balance of payments we shall be worse off. If that be the case, it would be the height of folly to reject any method which holds out hope of increasing our output or our production. In general, the outstanding feature of American industrial enterprise is its astonishing success in quantity production methods. It is equally true that the marked characteristics of British industry is its insistence upon craftsmanship, quality and skill.

Surely the greatest hope of success is in the marriage of those two national characteristics. If we can secure by the use of some greater knowledge of American technique a greater output of high-quality goods, we stand the best possible chance of bridging the gap in the balance. There fore, it seems to me that we should welcome rather than abuse efforts to facilitate this kind of consultation. It is all very well for the right hon. Member for Aldershot, who represents big business in its largest form to talk about machinery being already available for consultation. Of course, it is available to the big firms and the very big combinations and industrial amalgamations. But it is not available to the small firms.

Would the right hon. Gentleman be careful in what he is saying? If he has crossed the Atlantic recently, he will know that hundreds of representatives of medium-sized firms are going to America and are carrying on these consultations. He should be more accurate in his statements.

If the hon. Member had not interrupted me, I was going to say that I hope I am careful in my statements, and I wish that the right hon. Gentleman was as careful.

If the right hon. Gentleman will permit me to interrupt him, I would say that he has entirely distorted my argument. I did not say anything that was not in support of an increase in the exchange of technical information, but that is not the form in which this particular proposal has as yet been presented to us. The right hon. Gentleman ought to know that, and he ought not to distort my argument.

I am very sorry if I have misunderstood the right hon. Gentleman, but it seemed to me that he was attacking an arrangement the purpose of which he now professes to support. I was saying that continuous exchange of information is available to the big firms and combines, and a large and increasing number of small firms are seeing its advantage. [An HON. MEMBER: "And trade organisations."] And trade organisations, I agree, but it is still true that up and down the country, there are a large number of first-class English firms with fine reputations for good products, who have no contacts at all. They concentrate their attention upon producing their own goods, and very good products they are, but it would be folly to suggest that they have all reached the very pinnacle of output; they have not. They would be the first to welcome advice—if they are wise—as to how they can ally to their own intrinsic quality production the methods which will give them a bigger output for the same effort, the same manpower and material.

Does not the right hon. Gentleman agree that the people running these industries know perfectly well exactly what they want themselves? They are alive to all these things.

I have had some contacts with industries of just this kind and size. I know that some of them are not fully aware of foreign developments because they have spent their lives in, say, a small engineering firm producing first-class engines, and successfully selling what they have produced. They have made a great success of their business and it has not occurred to them that it is necessary to produce more out of the same materials and labour. They have not been particularly interested in maximum output. They have concentrated on a fine quality of workmanship, the production of a product to which they have traditionally been used, and the maintenance of their old markets which they have built up over many years. Those are the preoccupations of the fine firms which really make the kernel of British industry. They can learn something about increasing their production, and the Americans can learn more from our achievements. It is true to say that if we are to get over these troubles they must learn how to increase their output.

The fact is that, somehow or other, out of a given number of people and a given amount of material, we must get more. If there is any way in which newer countries—or older countries, come to that—can show us anything, surely we ought to take advantage of it. I shall not detain the House further except to say that I cannot for one moment think that the fact that these arrangements have been made—arrangements which I know are most welcome to many industrialists who have not been as vocal as some—can do anything but good to our export trade. It can only be an encouragement to our markets abroad to know that they can rely upon British industry to leave nothing undone which will improve its efficiency, increase its output and shorten its delivery dates. I, for my part, and I believe many others, welcome this arrangement.

5.14 p.m.

I find myself in the somewhat embarrassing position of wishing briefly to support the Chancellor of the Exchequer in the statement he made to the House yesterday, though indeed, I can only do so somewhat tepidly. Which is, perhaps, appropriate to the day. We can, of course, understand why the hon. Member for Finsbury (Mr. Platts-Mills) and his hon. Friends oppose this proposal. They do so from motives of their own. But I cannot see why the arrangement should be viewed with such apprehension and suspicion in other parts of this House. We know perfectly well that the greatest enemies of production are the Government them selves. That has been ably demonstrated this afternoon by my right hon. Friend the Member for Aldershot (Mr. Lyttelton). It may well be that our guests, when they come over here at the invitation of the Government, will give advice upon matters to which perhaps the Government may be prepared to listen to an extent to which they are not prepared to heed to my right hon. and hon. Friends.

I have said that I can only faintly support the Anglo-American Industrial Council. That is because I cannot see that these proposals are of very great importance, in view of the immense number of consultations which take place all the time between leaders and representatives of industry in this country, who continually pay visits to the United States where they are always made exceedingly welcome by those in industry over there. I cannot see how what I think the right hon. and learned Gentle man described as "consultations over the whole field of industry" can be of very great value. But I do not doubt that we have a great deal to learn about American production, which, in many respects, is in advance of our own.

I have no doubt that the American representatives who are to come here can learn much from us. I see no reason why we should have any false pride about inviting them here. Let them come here and let us listen to them. I think that the result will be mutually beneficial. I hope that they will be welcomed everywhere they go and that they will enjoy their visit to this country. Subject to the reservation I have made about the usefulness of the Anglo-American Industrial Council, I heartily welcome the action which has been taken by the right hon. and learned Gentleman.

5.17 p.m.

The implication which lies behind the statement of the Chancellor of the Exchequer, and hence behind today's Debate, is that, in general, British industries operate at a productivity level a great deal below that of their American counterparts. We have heard that point put in various ways and with various degrees of insistence for a very long time. Indeed, many hon. Members will be familiar with sets of figures pubished from time to time which purport to show that, on some point or another, the output per operator in the United States is 4.79325 times as great as the output of the operator in this country.

It is important to realise that these comparisons need to be taken with very many reservations indeed. Those who have tried at any time to measure industrial efficiency, and hence to find any sort of basis for comparison between efficiency of one kind and another, will know enough about the difficulties of making any such measurements to realise that we ought not to take for granted this legend of enormous American superiority, nor ought we to get into a panic about our own affairs.

Comparisons can only be approximations at the best of times, because one must reduce all products to one common standard. If one is trying to compare efficiency in engineering, one must start by seeing how many ash trays are equivalent to a turbo-generator, or how many pipe racks are equivalent to a motor car. One is bound to use a lot of approximation in doing that. One must allow for the labour which goes into not only the final product but into making the machine which makes the product. The Americans never do that. That is why they get some of these funny figures. One must allow not only for the labour which goes into the making of the product but for the labour which went into the making and maintenance of the machine with which the product was made.

Of course, one can get on paper more output per man-hour cracking nuts with a power hammer than one can by cracking nuts with a nutcracker, if one has to count only the labour of the man who operates the power hammer, but, if we add the labour of the man who makes the hammer and that of the man who maintains it, we find that it is the nutcracker which gives the greatest rate of productivity. There is this important factor, which has already been referred to. We must consider quantative factor as well as the qualitative one. Is it inefficient to spend twice as long building a locomotive which last three times as long and takes only one-third of the labour to maintain it in operation? So it seems to me that we ought not to get into "a flap" about this.

Having said that, I would add—and I think most people would agree—that, at least in some trades and to some extent, there is a margin of higher productivity in American industry. I am sure that the Chancellor was right in saying that, but where in my view he was thoroughly wrong was in his suggestion that this margin of extra productivity in American industry is due to their having some mysterious trade secrets that we do not know about. Just now, it is becoming fashionable to call them, in that strange jargon, the "know-how." The plain fact of the matter is that, while the Americans have got a few ideas ahead of us, we have a few ideas ahead of them and that is all there is in it, because, in these days, one cannot keep trade secrets very long, even if one has got them. There are so many contacts betwen all sorts of people that, wherever a new method of pioneering is found, it is universally known all over the world in a very short time.

There are all these contacts between British technicians in certain industries and American technicians in the same industries, though at a different sort of level from the one at present envisaged. This has resulted in a great deal of effective interchange of information. There are managers and technicians having contacts with other countries, and the universities and the professional associations of different countries are in constant contact all the time about their techniques. There are international managerial conferences and international technical conferences, at which these ideas are exchanged and, obviously, whatever these managers and technicians discuss is brought not only to the notice of their own country but lo others as well.

If what the Chancellor wants is information about manufacturing technique, we have got plenty of that here in our own professional associations and in the British Institute of Management. I thought that was why the Chancellor himself set up that body. There are a good many other organisations whose services we do not use at all. I belong to a trade union which has a membership of 16,000 executives, supervisers and technicians, which offered its services to the Government in connection with all the Government's industrial and technical committees, but of which very little use has been made.

The real secret of extra productivity in the United States is not that they know more than we do, but that they more freely apply what they do know. If, in the United States, somebody has a new idea in a particular trade, the manufacturers in that trade rush to buy it. In this country, only the best firms rush to buy, and the rest keep going on the same technique, keep the money in the bank or use it to maintain the previous level of dividends. It is exactly the same with methods. In the United States the benefits of the application of a new idea run like wildfire throughout the whole of the industry to which it is applicable; in this country, one of the progressive firms takes it up, while all the rest are busy making excuses why it will not do the job.

Let us not accept the excuses offered by the right hon. Gentleman the Member for Aldershot (Mr. Lyttelton) about the reluctance of British firms to employ new machinery because of the present rate of taxation. The right hon. Gentleman was quite wrong, because manufacturers are trying to do more now in this direction when taxation is high, than ever they did when it was low. The plain fact is that the real neglect was in the period between the two wars, when this high taxation did not exist.

The problem is not that we want some new doctor to prescribe some new medicine. It is the problem of getting the patient to take the medicine which he has already got, and which, in fact, is jolly good medicine. The real problem which the Chancellor has to face, and which, with great respect, I say he always funks, is how to get people to apply better methods. The Chancellor himself was the parent of the Industrial Organisation and Development Act the purpose of which was exactly to set up development councils which will apply to a whole trade the methods of the best firms in it, and by which manufacturers in any trade would be given the opportunity to learn painlessly from one another. But what is the result? The great majority of manufacturers are bitterly opposing the setting up of the development councils, and, if I might repeat a question which I put to my right hon. and learned Friend recently and which he did not answer or even attempt to answer, I would ask what makes him think that these industrialists, who are opposed to the setting up of the development councils to get them to learn from one another, will be willing to sit down and learn from some august international body?

The last point I want to make is in reference to the attitude of the trade union movement. When the Chancellor yesterday had to face some questions on this point, notably from my hon. Friend the senior Member for Oldham (Mr. Fairhurst) as to what would be the reac- tion of organised labour to this proposal, he said that it was all right, and that there were trade union representatives on the National Production Advisory Council for Industry, who had agreed with this suggestion. There is some great confusion about this. I would not suggest for a moment that the Chancellor attempted to mislead the House, but I will say that what he gave to the House about the proposal put before the N.P.A.C.I. is completely different from the account given by the trade union representatives to the General Council of the Trades Union Congress when they reported to it yesterday morning.

Hon. Members may have seen in "The Times" and other newspapers today an account of this—the full account of the deliberations of the General Council yesterday morning, and I quote from "The Times":

The House is entitled to know what this proposition is. Is it that Americans shall come over here and teach us something, or that they shall come over officially to find out how well we are doing? If it is the first, then my right hon. and learned Friend had better use his great gifts and clear exposition again upon the trade union members of the National Production Advisory Council who appear to have completely misunderstood the position. It is my view that one of the principal reasons why nothing will come of this proposal is that the trade union movement will not stand for it, if it is really proposed to have Americans telling us how to organise our industry. Why should they sit down in a sort of international joint production committee with representatives of a country which does not believe in joint production committees and has no such committees?

Is it not a completely anomalous position that the Americans who do not accept our concept of joint consultation at all, and do not practice in it their own country, should come and practice it here? Further, why should the Chancellor expect British trade unionism to sit down in conclave with the representatives of American business which last year ensured the passage of the Taft-Hartley Act, the most vicious piece of anti-trade union legislation since the Combination Act nearly a century ago, a trade union Act much more severe than even the Opposition Act of 1927?

I could laugh my head off when I think of this so-called high level Committee to which the hon. Member for Solihull (Mr. M. Lindsay) referred in which we get sitting next to one another round the table Sir Frederick Bain, Mr. Dave Dubinsky, Mr. Henry Ford II and Mr. Will Lawther. And these are the gentlemen who are to figure out what developments ought to take place in British industry. I think that those hon. Members who see something terribly sinister in this proposal are wrong. I do not think it is sinister; I think it is misguided, maladroit, and doomed in advance not to come to anything at all. I am quite sure that before long the Chancellor, with that high level of intellectual integrity which we all admire so much, will be willing to accept the view that he has dropped a brick, will find some face-saving formula, and will slide out of the whole arrangement.

5.34 p.m.

The hon. Member for Reading (Mr. Mikardo) has told a story based on his trade union experience. With a good deal of what he said, I am sure many of us agree. However, I am not by any means prepared to go the whole way with him, or to be such a prophet of woe over this question.

I propose to give from my own experience the other side of the question as it appears to, and as it has been discussed by, the industrialists. I can assure the House that for the last few days I have done very little else but talk to angry industrialists and attempt to calm them down and get some sort of sense into this question. I suggest that, first of all, we should keep a sense of proportion in this matter. The increase of productivity is mainly a matter for us in this country. There is no magic to be brought over from anywhere; no medicine in a bottle which can be given to industries, and which will immediately put ailing industries on their feet again. I am sure the Chancellor will agree that no action which an American, or anybody else, can take will have an immediate and overwhelming effect such as has been suggested in certain sections of the Press. It is a job which we must do ourselves.

There is no blind refusal on the part of British industry to study other people's methods. As we have told the Chancellor, the greatest difficulty in the way of studying American methods is the fact that he will not give us the dollars to spend there; also we cannot get enough passages. If we look at the number of people who have been over from America in the last two or three years, and the amount of money they have spent, we see that British industry has been carrying out a procedure which is by no means new. Up to date, industrialists have been studying American methods as they did before the war. They also studied German and Swiss methods. There is nothing new in this suggestion of co-operation. Therefore, why all this outcry? What is the history of this matter? It starts with the visit of some free-lance Americans, some of whom came to this country in their vacation, some of them, no doubt, with an honest intention to help us from a theoretical point of view of their own, and others, again of combining business with pleasure—to have a look round England and to seize opportunities which might further their own interests.

The trouble is that these people are taking back to America totally false impressions of British industry. They listen to some of our croakers, they read some of our adverse reports, and they go back to their own country, and say that British industry is in a terrible state. Of course, that is not true. I could take people round factories in America of which we in this country would be thoroughly ashamed. They are not all large high-production factories with travelling belts. They only have the travelling belts when they have big quantity production. In fact, when it comes to using slower production machines—ordinary methods—we can show them many things. We can beat them at price, and as my hon. Friend the Member for Solihull (Mr. M. Lindsay) said, we have endeavoured to show them that British quality is as good today as ever it was.

So what have we been considering? We have been considering how we can prevent these false stories from getting back to America and giving that country the idea that we are down and out, and shall be pouring the money received under Marshall Aid into a bucket with a hole in the bottom. But, in spite of all the efforts we have made, those stories have got back to America, and, naturally, Mr. Hoffman and others associated with Marshall Aid and who are now doling out the dollars, are concerned that one of these days they will have to give an account of their stewardship.

We are anxious that American Congress and American businessmen should know what our real position is. Therefore, we have said to them privately, "You know, we worked with you on joint co-operation boards during the war, and we got on very well together. You have some excellent men, friends of ours, who have worked in the past with British industry. Instead of letting these freelance people come over, why not send some responsible people who will look into the matter properly, and who will know that we are honest and hard working and have plenty of good as well as a few bad spots? Send over some old friends and we will tell them our problems and take them over our factories. We will give them the information which will enable them to get a real picture of the position." In that way, we could show our American friends what this country is doing, what progress we have made, and also some of our difficulties. As I said the other day, we do not want an American to come over here and tell the British motor industry how to double its output. If the authorities would give us double the amount of steel, we could increase the output without any American telling us how to do it. We are short of materials and we have other difficulties. We want the Americans to see the progress we are making and the help we are giving and shall give in the reconstruction of Europe.

The present misunderstanding started with the discussion which the Chancellor had with the National Joint Advisory Council, which was not a full-dress debate. He had the vestige of some sort of an idea, and later when he was at this Paris Press conference, that King Charles's head which is always in front of him bobbed up. He wants increased production. He saw a means of getting increased production, and the one thing that got into the Press and people's minds was this idea that we had to get increased production but that we could not do it ourselves and we must get some high-powered Americans to help us. The emphasis is put in the wrong place. My people have got thoroughly irritated; I have had to cool them down, and I think I have managed to succeed.

I am in a unique position today. We passed a resolution of the Grand Council of the F.B.I. at half-past three, and I suggested that it should be held back in order that it might be sent to the Chancellor of the Exchequer and my right hon. Friend the Member for Aldershot (Mr. Lyttelton) before it was announced to the Press. I have learned a few things since I have been in this House. I might get a good mark. This is the statement they made: I hope the Chancellor will be prepared to make a few dollars available.

5.44 p.m.

I have had some little experience of industrial affairs, and whenever a business or organization really wanted to improve its methods I have never known it to experience any difficulty in finding out how to do so. If the desire was there, the way could be found.

I am very suspicious of the resolution which has just been read to us by the hon. Member for Edgbaston (Sir P. Bennett). It sounds to me like a characteristic statement of British industrialists who have made up their minds that they know all about everything and have no intention of learning or changing their minds. The conditions which they lay down are so bound up with limitations that it would be almost impossible for anything to be achieved by a body limited in that way. That has been characteristic of industry in this country in the period between the two wars. They have not wanted to make any improvement.

I question whether the method now suggested by the Government will be effective in putting that improvement into effect. From what we have heard from the hon. Member for Edgbaston, it seems that the idea is already resented. Better and more drastic methods will have to be imposed on the industrial managements of this country involving the assistance of technicians and people with a real knowledge of these matters. We all agree with the elementary proposition that different people in different countries should help one another. We can all make that assertion, as we can make others, such as the assertion that we all want peace. We can easily say these things, but it is very difficult to put them into effect.

It seems to me that in this matter of European co-operation we are attaching ourselves too closely to the United States of America. We seem to forget that we are a part of Europe and, what is more, in questions like this we are the most important part of Europe. European countries are going to rely upon us for the success of this scheme, but if, right at the start, we publicly associate ourselves with the United States of America we shall immediately create suspicion in the other European countries. What is the position today? In relation to the bilateral agreement which has been made with the United States of America for Marshall Aid, we are the good boys of the class. The Government have said, "So far as we are concerned, there is no need to put these clauses into the agreement. We are the good boys. We are already carrying them out. We are only putting them in so that the United States can say to the rest of Europe, 'Look what good chaps these Britishers are. You do what they are doing, and everything will be all right.'"

That may be, but it will create a very difficult situation in European countries. They are suspicious of the United States, just as the great majority of the people in this country are suspicious of the United States. We are being forced to take their aid, but it is a very difficult and delicate situation. It is hanging in the balance. If there is much more of this sort of thing, this seeming imposition of an American dictatorship in this country, it will be very difficult to carry through this plan. Our associating so closely with America without consulting the other nations of Europe on this very important matter, will endanger the whole of the plan.

In some respects, and properly operated, this may be a good proposal, but I suggest that the Government have been altogether too hasty. They would have been much better advised to have consulted the other Governments of Europe who are concerned in this matter, and obtained their agreement. Had that been done, the position would have been safeguarded to a certain extent. As it is, it is endangering a structure which is already rocking on its foundations, and it may be the last straw that will break the back of this camel of European reconstruction.

5.50 p.m.

The hon. Member for Mitcham (Mr. Braddock) will forgive me if I do not follow him closely in the argument which he has put before the House. For my part, I am very sorry that I have to listen so often to these generalisations about the attitude of the United States of America. I think we are apt to forget that the loan made from the United States of America is not a Wall Street gangster, capitalist loan, but in fact it has to come from the pockets of the taxpayers in the United States as a democratic contribution.

I think it will be a wrong attitude if we are to have in this Debate the old bugbear raised again, as the hon. Member for Finsbury (Mr. Platts-Mills) will probably raise it, saying that we are now in the hands of capitalist, Wall Street America. Anyone who has had any real contacts, particularly with the important working people in American industry, will know that these political innuendoes are completely without foundation. This pooling of "know-how"—and that is what it really is— began during the war, and the whole fabric was set up with the closest co-operation between industry at all levels in this country and in the United States of America and the Dominions to help the war effort. Executive managers, trade unionists, workmen, visited the United States and their large-scale production plants and visits were paid by the industrialists of the United States of America to this country.

So this co-operation is already in being. I do not think at this late hour before the Recess we are going to put back the clock in that respect, whatever we may say about it today. I listened to the statement of the right hon. Member for Alder-shot (Mr. Lyttelton), but of course this business co-operation began before all that; it began with the international cartels, a long time before the war. An exchange of "know-how" in technical information was being made between the various industries in many countries before the war.

I hope the Chancellor of the Exchequer will not confine himself at the present time, to the United States of America, for this pooling of "know-how." There is a great deal of technical knowledge in America which we could use here and a great deal of technical knowledge which we have here—although we have no time to discuss that this afternoon—which could be used in the United States of America. But there is also a great deal of technical knowledge with regard to precision engineering production in Switzerland and, let us not forget, on techniques, in Germany and France. Much of this, of course, does finds its way into the technical journals which are distributed through industry and which are read by industrialists and by the working executives in industry in this country. I hope the right hon. and learned Gentleman will not neglect the opportunity to see that this technical information from Switzerland, Germany, France, and the United States is made available to the ordinary executives in industry, particularly in the smaller concerns, in order that they may know which new technical discoveries and technical advances are produced from time to time.

I hope that the right hon. and learned Gentleman will when he replies lay emphasis on the fact that this is a European Council, or is eventually going to be a European Council. I hope we are not going to see it confined within the narrow limits of the United States of America and this country. Eventually, when all these temporary problems have been removed, we shall be up against the vital fundamental long-term problem of increasing world production and its attendant questions—world consumption, or international credit and increasing world purchasing power so that we may use the increased goods that are produced —which, perhaps sooner than we think, we shall have to face in this House. 1 hope, therefore, that the right hon. and learned Gentleman will tell us that much of what has appeared in the Press is, to say the least, not correct. I would not say that the Press has been completely fair in reporting what has taken place and in the actual announcements. For instance, I read in the" Daily Express" this morning, written by William Barkley, the following words:

5.57 p.m.

I shall not permit the hon. Member for Eye (Mr. Granville) to drag me into any arguments about the dialectical exuberance of my friend William Barkley, so I shall pass direct to my argument. I do not know whether it is the weather, the close proximity of the holidays or what it is, but this afternoon there seems to be an undue amount of complacency about the economic efficiency of certain sections of British industry. There has been quite a deluge of speeches damning these proposals with faint praise.

I support them. British industrial recovery in the first place must depend on five major industries—agriculture, coal, engineering, shipping and textiles. I think it can be agreed that three of those industries are doing extremely well. I was recently round the Austin Motor Works with the Argentine and Venezuelan Ambassadors and I must say that these great works, humming like a beehive, were living, pulsating evidence of Britain's will and capacity to survive.

It would be dangerous, however, to assume that all is well in the two vitally important industries of coal and textiles. The problem is obvious; all the evidence is there: 30,000 pit ponies half way through a mechanised 20th century; 75-year-old cotton mills, equipped with 75-year-old machinery; these are the results of the neglects of the between-war period. But, of course, there is something else Which is equally dangerous, and I am bound to refer to it; it is an attitude of mind. Successive blood transfusions from across the Atlantic tend to obscure economic facts of life from, at any rate, some of our people, and in consequence we are tackling the problems of a debtor nation with a creditor nation psychology. I regard that as much the most dangerous aspect of British industry. That, in fact, is why the Grimethorpe miners work 5¼ hours and refuse to mine 10 per cent, more coal. That is why, in part at any rate, despite massive mechanisation, in South Wales output per man shift has fallen from one ton to 16 cwts. I do not think we serve our day and age by ignoring these facts.

On that point we need no advice. For years British mining has been in advance of the methods of the world, and the reasons for this fall at the present moment is the average depth of the pit and age. If capital equipment had been poured into the mines in the period of 20 years before today, we should not have had this problem now, and we do not need America to tell us that.

If the physical difficulties surrounding British industrial renaissance were all the difficulties that confronted us, I for one should feel much less worried. There is a very serious psychological problem. In due course my hon. Friend the Member for Leek (Mr. Harold Davies) and I shall be going to our constituencies and enlarging on the magnificent Measure of social reform passed by this House which came into operation on 5th July. It is necessary to understand that that grand piece of legislation could not have been put through—at any rate, not implemented—without the first American Loan; neither could it be sustained now without this wonderful gesture of enlightened self-interest and altruism, Marshall Aid. It is very important that we should remember these things. However, we cannot continue to clock on at the Washington Labour Exchange. It would be undignified and dangerous to do so. Therefore, I make no apology for touching on these matters. The fact of the matter is that we shall either make intelligence our headmaster or return to the school of experience for a refresher course. Either we shall learn through experience and intelligence or we shall learn once more through our stomachs. In these circumstances I see nothing improper in American industrialists and British trade unionists getting together for an exchange of views, not only on technical matters, but on industrial relations, in which, it seems to me, the Americans may have something to teach us.

Let me conclude by saying that I support the Chancellor's proposals whole heartedly and I am very glad to see the names of such distinguished representatives of British trade unionism associated with them. I support his proposals first on the ground of their being in the national interest absolutely, and secondly, on the perhaps less worthy ground that they are in the purely party interest. It would be no exaggeration to say that public opinion is gravely disquieted by the failure of the nationalised coal industry to mine deep mine coal in quantities adequate to our domestic, industrial and export needs, a failure in part concealed by the open-cast activities of civil engineering.

I want to say to my hon. Friends on these benches that the result of the next General Election will not be determined by ideological considerations. The British people are allergic to ideologies. The decisive factor will be the degree of industrial and economic recovery that the Labour Government have been able to achieve, and the extent to which that recovery is reflected in increased food, clothing, houses, petrol, and the like. Therefore, I welcome every step that is taken to increase British productivity. Britain is a country in which nothing very much ever happens except miracles. If we are ever to be freed from financial dependence on the West and ideological pressures from the East, another miracle is about due—a miracle of production.

6.5 p.m.

In the few minutes at my disposal, I propose to deal briefly with one or two matters in connection with the proposals of the Chancellor. I should like to say at the outset that I think we all would welcome any methods or any scheme which would increase our productivity on a wise and sound footing. Therefore, I am one of the people who welcome American co-operation. However, I do so with certain reservations, and I think that what the Chancellor has in mind needs greater explanation, so that the right perspective may be obtained of this co-operation.

In the City of Sheffield, and in many other parts of this country, we have our steel industry, which I think everybody in this country and the whole world ought to look upon with pride—everybody from the lowest to the highest. I have been connected with people responsible for carrying on some of the major plants. They have been going over to America, while Americans have been coming here, and British and Americans have been ex changing ideas on production. I would tell the Chancellor that our people in the industry know their jobs, and there is very little that they do not know about American production and American conditions. On the other hand, it is also true that their counterparts in America know about British production and conditions.

I should like to impress upon the Chancellor that if there is any idea of mass production of that very fine quality steel for which Sheffield is renowned all over the world, that great name which Sheffield has will be lost and untold damage will be done. That great steel industry in Sheffield is essentially of Sheffield, where the steel people are specialists. No co-operation should threaten that great industry or its reputation. I hope that is understood by the Chancellor, and that he will explain that this co-operation will not threaten the Sheffield steel industry or its fame. I think the right hon. Gentleman is the self-appointed spokesman for industry and I hope he will give us some ideas how the co-operation is to take place. He said yesterday that it is for the two parties to decide. I think that there is some responsibility now on the Chancellor to indicate that our specialised industries will not be lost to this country, for if they are untold economic harm will be done.

There is another subject on which I should like to have some explanation from the Chancellor. I may not touch on nationalisation, though I may refer to it in passing, and so all I would point out is that in this country some of our industry is nationalised while some is not. I am wondering whether the British and the Americans will compare like with like. America is very much a private enterprise country, while here in Britain we have the two types of enterprise, private and nationalised. Before any conclusions are arrived at, we should see that we get like compared only with like. If that is done, I am perfectly certain that the great industrialists of this country will have nothing to fear. They can hold up their heads, and allow any inquiry by their American counterparts across the ocean. Therefore, I am sure our industrialists will welcome American co-operation, and will be ready to give the information that may be helpful to America.

Finally, I should like the Chancellor to realise that he has here an opportunity for doing some bold thing, some statesmanlike thing. We are asking the Americans to come over to co-operate with us. The steel industry has been threatened with nationalisation. I beg the Chancellor to stand up as a statesman, and say that the Government will delay that nationalisation until our economic affairs are on a sound and proper basis.

On a point of Order about the course of this Debate, Mr. Deputy-Speaker. Are we discussing English industry or British industry; and has no Scottish Member any right to be heard on this occasion?

We are discussing British industry. With regard to the right of any hon. Member to be heard, that is determined by whether he is fortunate enough to catch the eye of the Speaker or Deputy-Speaker. With regard to the length of the Debate, after the Chancellor of the Exchequer has finished his speech, we shall then go on to the next subject for debate.

Further to that point of Order. The time is 6.10, and I am sure that it has been obvious, when you look round the House, Mr. Deputy-Speaker, that there are many hon. Members who would wish to make further contributions to the Debate. In those circumstances, is it not possible for further time to be given for the purpose of allowing discussion on this subject, and would the Chancellor be prepared to answer the Debate in an hour's time?

The question of length of time of the Debate is not a matter for the Chair to decide. It has been arranged to have certain Debates, two subjects of which have to follow this one. It is unfortunate that we cannot call upon everyone who wishes to speak.

In these circumstances why has 11 minutes past six been taken as the time when the Debate shall cease?

I would point out to the hon. Member that we are a minute late; the reply was to start at 10 minutes past six.

By what means, Mr. Deputy-Speaker, is it possible for a Scottish Member of this House to take part in a Debate of this kind? May I, in putting this point of Order, say that I have, on many occasions, tried to get in on a Debate not wholly Scottish in character, and apparently on almost every occasion, it seems to be the characteristic practice that English Members only are called.

If I may say so, speaking from the Chair, it seems to me that Scottish Members oftentimes take part in Debates that are not purely Scottish. This is obviously a general Debate, and selection has not been made by nationality at all.

I apologise if I am up-setting hon. Members in any part of the House, and I certainly apologise if in the slightest degree I am the cause of any embarrassment to you, Mr. Deputy-Speaker, but I think this is a most important matter. Scottish Members take an interest in United Kingdom and extra United Kingdom matters, and it seems absurd that on an occasion such as this, every Member called in the Debate should be a non-Scottish Member.

That is not a point of Order. It is for the Chair to decide who shall be called. One might have a similar complaint from Welsh Members—

I am not referring to the subject on which the last hon. Member addressed you, Mr. Deputy-Speaker. I was referring to your answer to me in respect of the question which I put to you and on which I should like some further clarification. I asked you how it was that the Debate was due to come to an end at 10 minutes past six. May I ask, in those circumstances, whether that was arranged through the usual channels, and how that time came to be agreed?

As I have to finish by 6.30, as has been arranged through the usual channels, I shall deal with this matter as rapidly as I can. I should like to point out the circumstances in which it arose. A good many people seem to think that somehow or other this is itself associated with O.E.E.C. It was as part of negotiations with O.E.E.C. in Paris and talks with Mr. Hoffman on this subject matter that this matter emerged. It was not unnatural, as it had emerged and Mr. Hoffman had agreed it, that he wished it to be made public to people generally as soon as possible. As I was anxious that it should not be made public first in New York, I thought that the best thing that I could do was to make it public in Paris at a conference which I happened to be holding a short time afterwards. That is why it was first made public at the Paris Press conference.

I think that a good deal of the trouble has arisen here from the way in which certain parts of the Press have dealt with this matter. If anyone cares to examine the Press the morning after the statement, they will find that a very reasonable and accurate account was given of what was said, except that two papers, not unexpectedly the "Daily Express" and the "Daily Worker," completely garbled it. As everyone knows that those two papers, and presumably the people who support them, wish to do all that they can to destroy E.R.P. and Anglo-American relations, it is not to be wondered at that we should find this constant concatenation, and this constant partnership between these two papers. I think, therefore, that it would be advisable to remind the House once again of what it was that I actually said, and how this thing did emerge.

I pointed out that Mr. Hoffman had made a statement in Washington before he came to Europe, and had made an offer. That offer was that he would be very glad to do anything he could to assist Britain, or any other European country to increase its productivity in its effort to make itself viable by the end of the Marshall Aid period. It was on the basis of that offer, as reported in the Press here and in the "Financial Times"—which gave it very fully as a matter of fact—that I, at a meeting of the National Production Advisory Council for Industry, raised the point —

I put the matter, therefore, as a suggestion to both sides of industry. It was discussed at some little length, and both sides of industry thought that it would be a good thing if I were to accept in general terms the offer of Mr. Hoffman, by saying that we would be quite prepared to have members of both sides of American industry visiting over here to sit with our industry, both for the purpose of getting information generally and for discussing the question as to whether and in what way the Americans could help us in this question of productivity. Having got that assent from both sides of industry, and having pointed out specifically to them that, in my view, this was a matter which should be between industries and not between Governments in any sense, and that all I should be doing would be to introduce the subject matter to industry and Mr. Hoffman, I then went to Paris and made that suggestion to Mr. Hoffman.

May I point out that on the National Production Advisory Council the National Union of Manufacturers were not represented. I ask the Chancellor of the Exchequer to recognise their importance, as representing 4,500 manufacturers, and to give them representation on the Council. We would have agreed if we had been there.

I am aware of this problem which has been discussed at great length over a long period of time, and as to which the manufacturers have not yet come to an arrangement among themselves.

Having discussed that and having put it to Mr. Hoffman, and he having accepted it, it seems to me that it was a good arrangement, which was worth while making. It was quite clear from what I stated, both in Paris and in the House yesterday, which was on exactly the same lines, that it is not the intention of this Council to carry out a broad investigation of British industry. That is not its purpose, nor is it such a body as would be capable of suggesting to particular industries the particular way in which they could or could not perhaps improve their efficiency. What it can do is to discuss whether there are ways, and what those ways might be— by a greater exchange of technical literature, by an exchange of technicians, and by many other methods—by which particular industries in this country could derive benefit from this co-operation with their American colleagues.

Now, it has been suggested that there is nothing reciprocal about this. In the nature of Mr. Hoffman's offer and our acceptance of that offer there was nothing reciprocal. Here was an offer made, and I said, "We are only too glad to accept it." But, as I have stated, as I stated yesterday, and as I stated before, if the Americans who come here want to get an exchange of information from us, and our people, our industries, are prepared to enter upon that exchange, no one will be more delighted than I. But that seems to me to be a matter for the industries to discuss, and to decide how far it should go. What we are primarily concerned with is that we should take every opportunity we can of improving our methods of industrial production.

Though I have stated over and over again, and though I stated specifically in Paris, that our industries have been doing and are doing an excellent job, I am not so blind, I hope, as to imagine that we cannot possibly improve them. Nor am I so foolish as to fail to recognise the fact that unless we can improve our productivity very markedly over the next four years there will not be much chance of our being viable at the end of the four years without any extraordinary external aid from some other country. Therefore, this is a crucial matter, and even if it only adds one very small thing to what we ourselves are doing it will be of assistance to us and is something that we certainly should not refuse and should not deny.

In the course of this Debate many hon. Members have said that one of the troubles in British industry is the slowness with which we adapt to our actual manufacturing processes the knowledge that we have got. That is perfectly true; and it may be that there will be some stimulation from an exchange of ideas in that matter as well.

The hon. and gallant Member shakes his head, but if he will be good enough to consult some of the research associations in industry and ask them how many years it takes to get new ideas accepted by industry, he will find that my statement is not exaggerated.

If the Chancellor will examine the number of research stations connected with different firms that are waiting to be built, he will find that I was perfectly justified.

I am afraid that is rather confusion of thought, if I may say so. I was talking, not about knowledge which we may get by new research stations, but about knowledge that we have got already from existing research stations.

The Chancellor, having given way to two hon. Members, will perhaps now give way to me for once.

No, I was on my feet first. As the Chancellor realises, in the aircraft industry, for example, in the last six months it has been very difficult to get technical information from America; it has been a one-way traffic—one particular item being pressurisation. Will British manufacturers get that information in future?

That is one of the matters which could very well be discussed upon such a body as this, and I think we should be very much more likely to get a good result from a discussion on a body such as this than from some representations from Government to Government.

May I now be allowed to ask a question? Can the Chancellor say whether the refusal of Mr. Hoffman's offer meant that no Marshall Aid or reduced aid would be given?

No; obviously nothing of the sort. It really is perfectly monstrous, if I may say so, for Members of this House, who ought to have some sense of responsibility, to make those sort of suggestions against the Americans. It is the worst possible thing for good relations between the two countries.

I was saying that we must recognise that there is improvement which can be made in our industry, and that this, we hope, is one of the ways. This will not cure all evils; this is only one helpful step, we think, towards attaining that end. I am very much fortified in that view by the expression of opinion this afternoon by the Federation of British Industries, which was read out by the hon. Member for Edgbaston (Sir P. Bennett), and also by the support which has been expressed by the Trades Union Congress.

Now, it has been said that in the report of the Trades Union Congress which was put out in the Press acceptance of this idea seemed to be based upon something which I had not stressed. It is perfectly true that one of the points discussed at the N.P.A.C.I. with regard to this matter was the advisability of the Americans getting a better view of our industry than a great many of them seem to possess at the present time. I think that is also an important aspect of the meeting of this body. But that was not what Mr. Hoffmann had offered to do to help, and I was dealing with the acceptance of the offer which Mr. Hoffman had made. However, I do think that is an important by-product which will come out of the meetings of this Council. I hope hon. Members noticed in that statement which was put out by the T.U.C. another very important aspect, namely, the degree to which they will now take part in managerial education and exploration so far as their own membership is concerned —with the British Institute of Management, the Administrative Staff College, the Government Committee on Productivity, and all the rest of those organisations.

Is the Chancellor not aware that, not in the Press statement but in the actual report of the Trades Union Council's proceedings yesterday it was more than a by-product? This is the only point mentioned in connection with the Americans, and there is nothing about American expert advice to British industry.

Perhaps the hon. Member would not mind listening sometimes to some things I say, and not always misrepresenting me. I did not say this was a by-product of the Trades Union Congress recommendation. What I said was it was a by-product of the acceptance of the offer which Mr. Hoffmann made; and, no doubt, as I stated, they consider it an important factor. As I was saying, I am reinforced in my views by the statements which have been made by both sides of industry.

I hope, therefore, that, having had this useful discussion on the subject matter, and having perhaps been misled by the way in which it was presented—not, I hope, by myself but by the Press—as a result of a conference in Paris, the House will now feel reassured that what we are proposing here is something which is acceptable to both sides of industry, and which, though no panacea for the ills, if they exist and so far as they exist in our industry, is a useful step towards, not only the possible improvement of our own productivity but also towards Anglo-American industrial relations, which I regard as a very important factor in the situation.

If this is not Government policy, as the Chancellor said yesterday, I should like to know whether reports of this Joint Advisory Council will be available to Members of this House from time to time, to see what concrete progress is being made.

Well, on that, one would have to ask the people who form the Council, because it will not be a Council sponsored by or responsible to the Government.

Armed Forces (Pay)

6.30 p.m.

I rise to deal with a subject which does not induce or compel much public interest, as will be evident by the state of the House in a few minutes—I admit the fact that I am speaking will be a factor in the case— and that is the question of the pay and conditions of the Armed Forces and the question of disability pensions. There has been no public or political interest for a variety of reasons. One of them is that there is no powerful trade union to force the claims of the Services upon the attention of Parliament, and another is that in normal times, as distinct from times of peace, the pay and conditions of the Forces attract very little notice in the country. Before I come to the points I want to put to the Minister of Defence, may I say that the Secretary of State for War and the Secretary of State for Air were good enough to indicate to me privately that they would have been present but for the delay which has taken place in taking this Debate, which makes it impossible for them to be here? I am sure the House appreciates that they would have been here if the Debate had been taken earlier.

I do not want to put this case in any party political manner. As a matter of fact, I think the circumstances are more favourable than in any previous Parliament for obtaining sympathetic consideration of this matter, because while we have in this Parliament a small band of sincere if misguided pacifists who object to the existence of Armed Forces altogether, we have nothing like the pacifist element I remember in the 1906 Parliament or the Parliaments between the wars.

I hope that the hon. Member does not object to my describing him as sincere, although the whole House regards him as misguided. As I was saying, but for the existence of this small but misguided band of pacifists, I think that the majority of Members in all parts of the House are anxious, especially at the present time, to see the best conditions possible in regard to the pay and conditions of the Armed Forces.

There is another reason why this matter should be brought forward at the present time. I said that the Forces had no trade union, very properly, to press their point of view, but there is something else, that should be realised, which present circumstances enable Members to realise very clearly, and that is even in peacetime in many cases there is something like—and there is in Berlin today with the air-lift—a 7-day week and a 16-hour day without any question of overtime. There is no one to get up here and say that the Royal Air Force should be given overtime. There is a third reason, before I come to the details—like the Chancellor of the Exchequer I have a self-imposed ban as to the time I shall take because a number of my hon. Friends want to speak —why I think this question is ripe for discussion at the present time. The Statement on Personal Income, Costs and Prices, Command Paper 7321, states:

I propose to put certain facts before the House, as succinctly as I can, and I want the Minister to refute or accept them, and if he accepts them, I hope it will be possible for him to make some statement favourable to the contention being put forward. It should not be supposed that because this Debate is only for a short time my hon. Friends will be satisfied if we do not get a satisfactory answer; otherwise we shall have to ask for a full Debate in the new Session. Between October, 1945, and October, 1947, the average weekly earnings in industry for men over 21, excluding administrative, clerical and salaried workers, rose from 114s. to over 128s. Since last October, the increase of civilian earnings has gone up and now represents a further 5s. or 6s.

So there has been a general increase—that is my contention—of 20s. in the average civilian remuneration since the date on which Service pay was related to it. That is a very important point which has not hitherto been brought out in Debate although it has been dealt with by question and answer—Service pay remains unchanged. I will give one example, although I have many examples which have been prepared for me, of how this affects the position. Take the corporal whose basic pay is 56s. On top of that he has a marriage allowance of 35s. and the equivalent in services and goods, as estimated by the Government, of 20s. This makes a gross total of ins., or 109s. after payment of Income Tax. Now the civilian earning required to produce this total, on account of the fact that the soldier does not pay Income Tax on his allowances, is 117s.

Suppose then that we had, at the beginning of 1946, a corporal and a civilian worker earning the same amount. Then that civilian's earnings are now, I maintain, £1 higher, while the soldier's earnings have remained the same. I have taken the case of a married soldier, which from the point of view of the Government is the most favourable type of case, because in civilian life earnings are in dependent of the worker's state, whether he is married or single, whereas a married man in the Services receives an allowance. For my purposes, if I had taken the case of an unmarried corporal, who would not of course receive a marriage allowance, the comparison would have been more un-favourable. I have not taken into account the National Insurance Contributions pay able by a soldier—I think some of my hon. Friends will deal with that rather complicated matter.

I come now to the question of married officers in the Army. I hope that my hon. Friends will be fortunate to catch Mr. Speaker's eye to give similar cases in respect of the Royal Air Force and the Navy. When we come to the pay of officers the position is even more serious. I do not propose to argue whether or not the pay Service officers were receiving prior to 1946 was adequate, but I assume that the Government will not tell us that it was excessive; I think we are all in agreement that it was certainly not excessive in 1946.

When the new Pay Code was introduced the Government made great play with the fact—and I remember it very well—that the reduction in the rate of Income Tax would benefit Service officers whose allowances were not subject to Income Tax. That expectation has not, of course, been fulfilled. The argument was never a sound one, but let us assume, because it is interesting to make the assumption for reasons which will be clear in a moment, that the standard rate of Income Tax had fallen to 6s. Having made that assumption, what effect would it have on the sort of cases I have in mind? The married officer with three years' service would be unaffected. The married officer with 11 years' service would gain£9 per annum instead of losing, as he does now, £35, and the married officer with 22 years' service would gain £7 instead of losing, as he does now, about £68. We thus see that even with a reduction in taxation which it is wholly unrealistic to expect, the Ser vice officer would only be receiving about the same as he got in the earlier half of 1946.

Here is a point which will be accepted by hon. Members opposite, some of whom were responsible with my right hon. Friend Mr. Hore-Belisha for initiating this system. We now have as officers—certainly the majority in the Army and, I think, in the other two Services as well —men without private means. We no longer rely exclusively upon one class. Incidentally, pay and conditions in the British Army, compared with those of certain Continental armies, is very much less. For instance, in the Soviet Army officers' pay and general conditions are infinitely superior to those of the other ranks, and this is also true I think of other Continental armies, although I am less sure on that point.

At any rate, the relative position of officers in the Army—and I am speaking mainly of the Army—is actually worse than the figures I have quoted. In 1946, many, if not most, Regular officers were still occupying temporary rank one or two steps above substantive rank, and the full impact of post-war cost of living was to some extent masked at the time. For the most part these officers have now reverted, and I may say in passing— although I do not wish to get on to a subject which we do not desire to discuss today—no one who was in the Army in the first world war or the second world war would deny the great hardship that comes to regular officers, such as brigadiers or major-generals, who revert back to colonel or even major. I know of some hard cases in the 1914-18 war and similar cases in this war. In I946, the Government provided for a temporary supplementary allowance to officers who were drawing marriage allowance before the new pay code was introduced. This temporary allowance, made, again, on the assumption that Income Tax would be reduced, is, I believe, to be reduced this year and to be stopped altogether in 1950. I am not quite sure of my facts" on this point, and I should like to have confirmation from the Minister. I do not think it ought to be either reduced or abandoned.

The rise in the standard of living since 1945 has undoubtedly affected the serving officer. Official statistics show that there has been a rise of 8 per cent, during the 12 months in which the official index has been in force. That index is mainly applicable, as those who have acquaintance with Ministry of Labour affairs know, to wage earners, and it may pre-judicially affect officers in the three Forces more than it does the ordinary wage earner, for a number of reasons. One is that even although expenses have been cut down as much as possible they have to keep up a certain standard. I should like to come to the position of the married officer with no children, living in London. It would be most improper to mention names, but I have one or two personal friends who have found it extremely difficult to exist on the pay which they now receive. Here is a typical case: rent £3 3s.; food £4 5s. 2d.; fuel and light 9s.; upkeep of clothing and shoe repairs 8s. 6d.; sundries 7s.; bus fares 2s. 6d.; recreation£1 11s. 3d.; other sundries 14s. 5d.—total about £11, leaving practically nothing over in the officer's pocket.

There is another matter which should be remembered. It may be said how well this compares with the condition of some people in industry. I do not think that is a true argument, but there is one answer to it which should be given, namely, that again and again, when an officer has gone to the expense of hiring a house for himself and his family, when no married quarters have been available, he has suddenly been ordered to another place, often very far away. I know of instances where real hardship has been caused through this sort of thing. I should like to make it quite clear that I am not urging an increase in pay simply for officers or other ranks. What I ask is that the pay and conditions of officers and other ranks—and their comparable numbers in the other two Services—should be reconsidered in the light of the points I have endeavoured to make—that there has been a rise in the cost of living, a considerable rise in civilian incomes and no comparable rise in pay and allowances for the Forces.

I said I would keep the House for only a quarter of an hour, and I do not propose to deal with the other subject which is down for consideration today, namely, disability pensions. My hon. Friend the Member for Lonsdale (Sir I. Fraser) will, I hope, catch your eye, Sir, later, and mention the case of disabled ex-Service men, a matter which is very complementary to the question we are now discussing. What we want to see are contented Armed Forces, with proper pay and conditions for their members when they are serving and proper disability pensions if they go out disabled.

I have followed the noble Lord's argument carefully, and I agree that he has made out a case, but would he be prepared to agree that Service men who are dissatisfied with the Forces should be allowed to resign and go into industry?

I do not know what that has got to do with the point I am trying to make. It has no relevance at all. Like the majority in this House. I want to see contented Armed Forces.

The hon. Gentleman interrupted me, and perhaps he will allow me to give him an answer. Unlike the hon. Gentleman and his associate by his side, I, in accord with most Members of the House, wish to see the country defended and members of our Forces receive a proper living wage. I was about to say, when I was interrupted, that my hon. Friend the Member for Lonsdale will deal with the question of disability pensions— and no one is more suited than he to deal with that subject. I would only say now that that case seems to rest on an even stronger foundation than the case of Service men in general. There has been a rise of only 5s. in the basic rate of disabled persons' pension since they were fixed immediately after World War No. I. Therefore, the plea which will be made later on for an increase in pension rates is even greater than I made on behalf of the serving men today.

In conclusion, I must make this observation on the question of pensions. I say—and in saying this I shall have the assent of my hon. Friends on this side of the House—that it would be a foul treachery to the disabled ex-Service men to pay them a lesser rate than that to civilians for comparable injuries, no matter how hazardous that industrial occupation might be. In other words, this country has no right to pay the disabled ex-Service man less than it pays the disabled miner or anyone who is injured in industry. I have endeavoured in these few remarks to keep away from party points, but if that state of affairs prevails then we shall have to look into this matter and, as the common phrase is, take it to the hustings for we would regard it as a grave breach of faith with our ex-Service men. I am most grateful for the attention that has been given to my somewhat desultory remarks because I had to get them over in a compression of time, and I hope the right hon. Gentleman will be able to give a favourable reply and that he will assure us that the facts and figures which I have ventured to put before him are receiving the most earnest attention of His Majesty's Government.

Before the noble Lord sits down I should like him to explain the case which he put forward a little more fully than he has done. He seemed rather to resent anyone asking him a question, but I hope that he does not think there is anything pacific or unpatriotic about me in any way, because, as he should know, I did my share in previous wars but I was too old for the last one. The point which I wish to put to him is very important. Is he asking that there should be comparative rates of pay in the compulsory Armed Forces, that a man in the Services, whether he is in Great Britain or overseas with all the advantages of service and time off and recreation facilities, should be paid rates equivalent to civilian industrial rates of pay? If that is his point then he must agree that the men in the Services would have to have appropriate organisations in order to negotiate their rates of pay and the settlement of such questions, and not only matters concerned with pay but conditions in other directions.

I would refer the hon. Member for Rochdale (Dr. Morgan) to the Government's own Command Paper to answer much more clearly than I can the somewhat tortuous question which he has put.

I am extremely grateful to my right hon. Friend the Member for Horsham (Earl Winterton) for raising this matter and I should like to add a few words from the Royal Air Force point of view. Incidentally, it is very gratifying to me and to those hon. Members on this side of the House who served in the Royal Air Force to see that the Royal Air Force is the only one of the three Services represented on the Treasury Bench at the moment.

It will be generally agreed that at this stage in our national affairs, we should be doing all that we possibly can to build up a strong and efficient Air Force by attracting to it in sufficient numbers the right type of men. That is a task that is being made impossibly difficult by the mere fact that the Royal Air Force personnel today are financially considerably worse off than they were in 1946, while civilian earnings, on the other hand, have increased since 1946 by something like 19s. a week.

On 7th July of this year the Minister of Defence produced the first of his quarterly reports showing the total number of men serving in the Armed Forces, and the figures for the Royal Air Force were very disturbing indeed. The establishment provided for in the Royal Air Force is 316,000, but at the moment we have only 256,000 serving, which is only 81 per cent. of the required strength. I will not go into how these figures are made up, but I have the details here in case I am taken up on them. This is an appalling state of affairs, directly due to the failure of the recruiting campaign. My right hon. Friend has already mentioned the tremendous effort which has been made by the Royal Air Force in the Berlin air lift. It has earned the admiration of the House and of the country, but in order to keep it up, it has been necessary virtually to denude many R.A.F. Commands of certain tradesmen. There, again, that would not have been necessary if the Royal Air Force were up to full strength. The responsibility for all this rests very largely, in my view, with those who introduced the new pay code.

I am going to quote a number of figures but I will keep them to the very minimum. I apologise to the House for having to do so, because I know how tiresome they are, but in a Debate of this sort, when one is discussing Service pay, it is impossible to avoid using some figures. It also means that I will have to follow my notes more closely than I like to, as, like so many Members of the House, I cannot hold figures in my head. If I may, I should first like to give as an example an L.A.C. in Group I with four years' service. In 1946 he received 61s. 3d. per week, which included badge pay of Is. 9d. and war service increment of 8s. 9d. An L.A.C. of similar qualifications and number of years of service now receives 52s. 6d. a week, no badge pay and no increment. If he is married with one child, under the old rates his wife received in addition 40s. 6d. Today she gets only 35s., and if she has only one child there is no children's allowance at all to draw from the Post Office. For every additional child she receives only 5s. a week from the Post Office compared with 12s. 6d. under the old rates. Obviously, they are very much worse off than they were before.

Secondly, I should like to cite a case of a corporal in Group 1 with four years' seniority and a total of eight years' service. Under the old rates he received 84s. a week, including badge pay of 6d. and war service increment of 2s. 6d. A corporal with similar qualifications and number of years' service today gets 70s., plus badge pay of 7s., making a total of 77s. Under the old rate the marriage allowance amounted to 37s. but under the new rate only 35s. In individual cases where marriage allowances under the old rate exceeded these under the new, the old allowances apply so long as the children remain of eligible age, but the allowances are included with the pay for Income Tax purposes. So that even today the man has suffered an actual decrease in net income. One could go on right through the list showing that each rank is worse off than was formerly the case. I am not going to deal with officers as I hope that my hon. and gallant Friend the Member for Macclesfield (Air-Commodore Harvey) may catch your eye, Mr. Deputy-Speaker, and will deal with it. In a number of cases, the rates of pay, including service increments, under the new code, are very much lower than under the old. In order that the new code should not produce such reductions, a war excess to equate the two rates of pay was introduced. But this war excess has now been tapering off in a series of six-monthly cuts since January, 1947, and has resulted in making members of the Royal Air Force considerably worse off than they were before. No doubt the tapering off process was based on the expectation that civilian earnings would be reduced from the level existing in 1946. An attempt was also made to justify it on the ground that promotion and service increments would, by this time, have raised the total pay and would offset the cutting of the excess. That suggestion was quite contrary to the principle of giving the increased pay for higher qualifications or increased length of service.

From the examples I have given it cannot be surprising that recruiting has fallen off. Lord Tedder, speaking at Manchester in April, said that the situation now was more dangerous than when he had spoken about 18 months previously. He said, quite rightly, that the Royal Air Force were not getting men of the quality or quantity required. More skilled men had gone back to civilian life, and the compensating flow into the air defence forces was, he said, quite inadequate. He ended his speech by saying that he would offer no baits or bribes and that the Ser vice offered the comradeship and inspiration that came from working as a team. That is a very admirable sentiment. I know what he menas, having been in the Service myself. But that sentiment will not make up for a rate of pay which is lower than the men were receiving during the war and is very much lower than their civilian counterparts. The cost of living goes on mounting. It has even increased by 10 per cent, during the last 12 months.

Not very long ago there was an article in the "Daily Mail," which no doubt the Minister saw, which described how air men had been invited to submit their personal budgets to Command headquarters, in order that an idea might be formed of their expenses compared with their pay. I would just like to quote one or two examples from that article. It was stated that one reply to the invitation disclosed that a squadron-leader who received £780 after his Income Tax had been deducted, had expenses of no less than £1,600 a year. The article stated that only if he had a private income could he possibly maintain his standard of living. An R.A.F. sergeant, with a wife and two children, was shown to have an income of £324. Details of his budget were given, all of which were very reasonable. His budget totalled £420. The article went on:

The difficulty which officers and airmen have in keeping within their incomes can only lead to discontent and anxiety which they should not have, particularly in a Service like the Air Force. In that Service they are trying to concentrate on a highly technical business and often a dangerous one. They should not have such financial anxiety on their minds. That can lead only to a weakening of the Air Force, an unacceptable and intolerable weakening of a Force without which we should at this moment have no communication with Berlin; on which we may have to rely once again to take the first shock of any new attack which may be made upon this country; and to which we should eagerly and gratefully turn once again, in the event of another emergency.

7.7 p.m.

In initiating the Debate this evening, the noble Lord the Member for Horsham (Earl Winterton) spoke in one of his mildest ways and tried to keep this matter on a level at which we should also try to maintain it. I think that the Minister of Defence will understand that while we do not want to cause him any embarrassment, we want to deal with this matter from an objective point of view.

My right hon. Friend has a great interest in the contentment and satisfaction among officers and other ranks in all three Services. On him devolves the duty of so organising our Armed Forces that they are a shield and a sure measure of defence if unfortunately, as seemed to be indicated this afternoon in the Foreign Secretary's speech, trouble should arise. When we consider conditions as well as pay in the Armed Forces there are factors affecting them which, as previous speakers have mentioned, do not affect civilians in the same degree. The Armed Forces have to obey orders. There is no question of their being permitted to strike for better pay or better conditions of work. It is entirely true that if there ever were a trade union organisation for Service men and women, which I myself would deprecate under the conditions in which the Armed Forces have to serve, there is not the slightest doubt that the representatives of such trade unions would have a great deal to say on the hours and conditions of labour of those employed in the Forces.

In the conditions in which they have to work, members of the Forces are at the beck and call of their superiors at all hours of the day and night. I think that we all recognise that. There are many hon. Gentlemen who have served in such manner in the most arduous conditions of war. We need not think that because we have a situation which is called "peace," especially in Germany, or where our Forces are serving overseas, that we necessarily have peaceful conditions. We have nothing of the sort.

I would not attempt, in supporting as I do to a certain extent—to a large extent—the case which has been presented by the Opposition tonight, to argue that at the present moment, under existing conditions, we should have an overall increase of pay and allowances, but we should remove many of the anomalies which have occurred in all three Services, and of which I shall give examples in a moment, since we instituted the new pay code. I well recollect when I was at the War Office considering the new pay code, and we thought then, and we said so—my right hon. Friend the Minister of Defence who was then at the Admiralty will, I hope, agree with this—that we had endeavoured to equate the pay and allowances of officers and men in the Services to something comparable with civilian rates of pay. That was the case in 1946, but there is no doubt about it—I do not think that my right hon. Friend will attempt to deny this—that since those days the conditions in pay in civilian life have increased out of proportion to the rates of pay which we inaugurated for the Services in 1946.

I will endeavour to offer one or two constructive suggestions to my right hon. Friend the Minister of Defence, with whom I acted for a certain period as a colleague in managing the Services. I know his sympathy is with us, whatever he may say when he comes to wind up. I can speak from personal experience when I say that he has endeavoured, on behalf of the three Services, to put the point of view of the Service Ministers to his colleagues in the Cabinet. I know that he will understand me when I say that certain anomalies of which he is well aware could very well be rectified at the present moment without altering the structure of what I would call the wage system.

In discussing this matter tonight, we cannot entirely ignore the Chancellor's appeal to industry to concentrate more on lowering the cost of living rather than on increasing the wage level, because there is a great danger that if we concentrate only on the wage level we shall get into a spiral of inflation which in the long run will do more harm to those who are drawing salaries and wages than if we concentrate, as I believe the Chancellor is doing, on trying to bring down the cost of living. It is quite true, as the noble Lord the Member for Horsham said, that when we considered the new pay codes, we had at the back of our minds the hope that taxation would fall. It has not fallen, except as regards allowances, mainly for married folk; in the main the standard rate has not fallen. One of the qualifications or concommitants of our White Paper has not been realised and I suggest to my right hon. Friend that that is a very substantial factor when we are considering this matter objectively.

I said that I would call attention to some of the anomalies, and I would like to refer to education. Letters have been appearing in "The Times" recently about the difficulty which married officers with children have in educating them if they are sent, as they are so often sent, to stations overseas where it is not possible to take their children with them or, if they do take them, where there are no educational facilities or no reasonable educational facilities for those children My right hon. Friend could very well look into that point. I do not think for one moment that he will have much chance of success with his right hon. and learned Friend the Chancellor of the Exchequer in getting a general wage increase, but I suggest that, as a result of this Debate, he might represent some of these points with some force and cogency.

The Army itself—I know most about the Army; the other two Services can speak for themselves—have attempted to deal with this matter by setting up schools overseas, but they have not been entirely successful in setting up the right kind of schools, especially schools for the older children who require secondary education. Something will have to be done if we are to provide the same high educational opportunities as the Education Act provides and as the Minister of Education yesterday attempted to prove to us he is doing for the general body of citizens in this country.

I wish to deal briefly with these points, as this is an occasion when private Members should express their point of view. It is very rarely that we get an opportunity of dealing with these matters because when the Service Estimates are presented, they range over such a wide field that it is impossible to pick out one subject like this and concentrate on it. On the question of housing—I have always felt this although I had to give the matter a trial—I think the Services have not been so favourably dealt with as have the civilians. On more than one occasion I have attempted—as also have my Service colleagues of those days—to prove that the Services in this country should be allotted a larger number of houses—and not only allotted those houses but actually provided with them—than they have hitherto been able to get in competition with the Minister of Health.

Does my right hon. Friend realise the implications of his argument about housing so far as Scotland is concerned? In view of the terrible state of housing in the mining areas of Scotland, is he arguing that the already depleted building force should be taken away from the task of building houses for the civilians and put to building married quarters for the Army?

I realise quite fully the implications of my argument. I was saying to my right hon. Friend—and I hope most hon. Members will agree with me —that if we are to have Armed Forces consisting of citizens in uniform, they should be entitled to the same facilities pari passu as all others engaged in civilian industries, whether they are in Scotland or in England. On reflection, my hon. Friend the Member for South Ayrshire (Mr. Emrys Hughes) will not disagree with that point of view, subject only to one thing, that priority must be given to certain important industries like the mining industry and the agricultural industry. Those priorities have already been laid down, but generally speaking we should have equality in all walks and ranks of life. We have never yet had that in the Services.

I remember that in the Army Estimates which I presented in 1946, I made great play with the number of houses which we had put down in the Estimates to be provided for officers and other ranks in the Army, but I doubt very much—my hon. Friend the Under-Secretary of State for War is here and can deny it if he will—whether the Army has had the number of houses laid down in those Estimates. Of course, the position may have improved since I left the War Office. If so, I shall be happy to be told that that is the case. The Minister of Defence might pursue that line when he comes, as he must ultimately come, to discuss the matter with his Cabinet colleagues. I believe that if we could provide better housing facilities and more houses for the Services, it would go a long way to satisfy them that they are getting a fair deal, which many of them think they are not getting, compared with their civilian confreres.

There are anomalies in the way the rent allowances are handled at the present time. If an officer has to provide a house for himself because the Army, the Navy or the Air Force cannot provide it, he has to manage as best he can in a market which is very short of houses, at any rate in many of the large populated centres. He has to enter into competition with civilians who, quite often, are earning more salary or wages than he is, and he has to provide a house for himself because he must live somewhere. What happens? He is granted a rent allowance in accordance with rank or with the quality of the quarters that he should get according to his rank. More often than not the rent allowance he draws from the Service is quite inadequate to provide him with any housing accommodation in the centre where he has to live to be near his work. That is most unfair, and I have a suspicion that my right hon. Friend knows that it is unfair, so I hope he will admit it is unfair and will tell us that he will take up points of this nature with the Treasury.

I have attempted to widen the Debate from the point of view which was expressed by the right hon. Member for Horsham when he opened it. I do not believe that if we are to attract men to the Regular Services, we can satisfy them by offering pay and allowances only, because that is not sufficient to induce them to enter the Services on long-term engagements. I believe there is a nucleus in this country, perhaps small at the moment, of individuals who are prepared to take on a Service life because they like it. Although I would not take advantage of that patriotic spirit, that willingness to serve their country under conditions which their fathers and grandfathers from experience have told them are arduous and hard, nevertheless I believe that in the main we shall recruit our Regular Forces, particularly as far as the Navy is concerned from those who have the sea in their blood, as it were. I think my hon. Friend the Civil Lord, who is on the Front Bench tonight, knows that, because something must have induced him to serve as a stoker in the Navy for so long before he came to the House. I think he will agree with me that it was not the over-generous rate of pay which induced him to serve, so there must have been something of far greater value.

With regard to the rehabilitation of ex-Service men, in the Army the average Regular engagement is for five years, in the Navy it is longer, in the Air Force it is slightly less, at any rate in the initial period. We hope, of course, that those who sign on for that initial period will extend their service and serve on for a pension, but the fact remains that, as far as we can see in the future, the number of Regular soldiers who will be inclined to extend their service in the present disparity of conditions between the Services and industry will be small, certainly smaller than it should be. The Army can offer all sorts of inducements, as they are doing by their, on the whole, excellent poster campaign; they can say that the trades which will be learned in the Army will be recognised by the trade unions when the men come out of the Army.

Incidentally, credit is due to those who have been able to induce such a large number of trade unions to recognise a trade rating or classification in the Services as qualifying for the trade union ticket when they go back to industry. In spite of that, those men who come out at the end of their term of regular service, especially as the years go on, will be at some disadvantage compared with those who have served their apprenticeship, have done their one year's military training, then gone back to their job and stayed in it from the time of leaving school, with the slight exception of the period of compulsory military service. I know that my right hon. Friend the Minister of Labour is doing all he can to provide opportunities for Regular Service men to enter into well-paid jobs when they come out of the Services, but something more is required than the somewhat nebulous statements in the Press about a good job being ready for the ex-Service man when he has done his duty to the country and left the Force in which he was serving.

I hope my right hon. Friend, at the end of this Debate, will be able to say that he has truly welcomed it, because I believe it will strengthen his hands in the discussions he must inevitably have with those who hold the purse strings.

7.26 p.m.

I do not propose to detain the House for long, but I want to make one strong point. As I have often said in this House, I am not in favour of conscription in principle. I believe that the size of Army which is required could be achieved on a voluntary basis, provided that adequate pay, proper training facilities, and decent living and housing conditions were assured.

I want to draw attention to the White Paper on Forces Pay issued in December, 1945, which went a long way towards eradicating the complexity of the old system of rates of pay which, by the end of the war, had become completely ludicrous. That system has now been simplified and is good, but it has failed entirely to achieve one of its main objects, more or less to equalise the pay of the soldier with his opposite number in industry. I propose to prove, by one example only, that it has not done this, that it did not even do it at the time the White Paper was published, and the matter is much more serious now than it was then. On page 7 of the White Paper, the operative page, will be found a list of comparative rates of pay. I want to impress on the Minister of Defence that in that table is included what is called the "Home Saving," that is, the amount of money which the soldier receives in unseen perquisites such as housing, clothing and food. Therefore, it is not right to say that these must be taken into account, because they are already taken into account in that paragraph. I propose to take the highest and the lowest for my example.

The soldiers on the 28s. basis, with 35s. marriage allowances—and do not forget that not all the soldiers in the Army are married, so that it is not even fair to take the married ones—get their 20s. "Home Saving," which is a reasonable estimate. It has gone up a little, probably 8 per cent. in the last few years, but not much more. Finally, he arrives at a figure of 83s. a week, tax having been deducted. The comparable figure in industry in order to obtain a similar sum, tax not being deducted, are shown as 84s. week. As to the higher pay at the foot of the table where the man starts with 55s. a week, his pay will be 109s. a week and the comparable pay in industry is 117s. That is all very fine, but on the date in question, July, 1946, the average rate of pay in industry for men was 121s. In the White Paper, at the very best it is 117s. Therefore, it is utterly wrong. 121s. is the operative figure.

Let us move on to paragraph 12; this is the false premise on which the whole thing has been built up. The paragraph begins:

Let us not forget that a married soldier, whether officer or man, has the overwhelming burden round his neck of having to keep two homes going. We know of the shortage of married quarters and housing and that it is the exception for a soldier to be able to have his family anywhere near his place of work. Therefore, he has to make long railway journeys, for which he is not always issued with a warrant. Furthermore, very often he has to move his family, if and when they move, to other stations, and has to pay a great deal for the disturbance. I know to my own cost, having had to move five times in three years, how much it cost me if I wished to have my family living anywhere near me.

I will conclude by saying that we should go into this matter, on the basis either of a Royal Commission or of a Select Committee of the House, consisting of hon. Members from all quarters. That is the proposal I should like to put forward because of the seriousness of this problem. It is no good trying to delude the soldier into thinking that he is getting approximately the same rate of pay as his civilian counterpart, because he is not. Any newly joined recruit can work it out for himself.

In the past, with nearly every Government, whenever there has been a change in the pay code, it has become perfectly clear within a very short time that what has been given away with the right hand has been taken away with the left. It is not until people awake to that fact—which they do very soon afterwards—that we get resentment and the sort of feeling that they have been dealt with dishonestly. That feeling is very detrimental to the spirit of the Army. The right hon. Gentleman must take a really firm, strong line with the Treasury on this question. Do not let us have any more "jiggery-pokery" about figures, but say either that we cannot pay the Forces any more, or that we will. Let it be a real increment in pay, which will have the effect of getting us our volunteer Army on the basis on which we all want it.

7.34 p.m.

I want to say a few words on this subject, but not because I happen to know much about the Army or any part of the Forces. I know that in many of these Debates, the specialist and the man who knows the subject thoroughly from beginning to end, necessarily can add more to the discussion than can other people. At the same time, there are occasions when the outsider is able to help in these specialised discussions. While there may be differences of opinion about the Army and the rest of the Forces, there is no doubt that, in the main, the country believes they are a necessity under presentday conditions, and when we are considering the conditions, whether of pay or of living, of the Forces, I do not think we can isolate them. We cannot isolate anything in matters of this kind. They must, of necessity, be related to the rest of the community.

I should have been sadly disappointed had this discussion continued without someone from this side of the House who was not a specialist, expressing his sympathy and views. In doing so I think I shall be expressing what is the ordinary opinion of the ordinary man in the street, who realises that, however much we desire peace, our Armed Forces are at present a necessary instrument. So necessary are they, that in so far as we believe in justice and in giving due encouragement to any section of the community because of any special position in which it may be placed, we must realise that this section of the community is as vital and important as any other section.

Speaking as one experienced in the industrial world and in the trade union movement, I do not believe for one moment that there is any desire to keep the standards of pay or any conditions relating to the Forces, in such a position that they make a bad comparison with those of any other section. For that reason I feel that what I am expressing in this Debate is the general psychological attitude of the people of this country to our Armed Forces. They want the Forces to be attended to thoroughly and to be given proper prominence and conditions.

It is not an analogy, in comparing rates of pay, to take the case of a married man. We must take them as a body, in comparison with the total industrial or ordinary civilian employees or administrators in the rest of the country. What do we find? We find that, when dealing with the individual, we make a special distinc- tion between the married and the single man. When we are settling conditions of wages—apart from some special allowance because a man needs a house when he is married—is it not generally understood that the single man is given the same standard as the married man?

If we were to go into that position and decided that the principle of payment for men in the Forces is on a false basis, what is the real standard wage that men in the Forces ought to have as single men, in comparison with that of single men in the rest of the community? If we were to do that we should set a satisfactory basis for a single man. If we were to do that reasonably, if we felt that we wanted to give real justice to the single man in the Forces, and we considered whether it would be advisable to have more single than married men in the Forces—I suggest it would be better to have more single than married men, in so far as we can get them—if we were to do that, and if we made a real comparison of the basic position of a single man as regards payment for his work in the Forces, we should find that it was necessary to raise considerably the wages for the single man. Having done that, we could then deal with the married man and his difficulties regarding housing and other contingencies.

It would be unfortunate it we from these benches, did not say that we were glad that the Opposition had raised this matter and ventilated it to such an extent that it must, of necessity, in the very near future receive real attention with beneficial results for the whole of the Forces, including the single man. Because of that, I have expressed what I believe to be the general attitude of the ordinary citizen to this matter.

7.40 p.m.

I am sure the whole House were very glad to hear the speech of the hon. Mem- for Wallsend (Mr. McKay). There was the voice of what we all hope is the average citizen and there, too, was the voice of a noted trade unionist who is expert in the consideration of these matters from the civilian point of view. The House has gained a great deal from hearing the most reasonable and just manner in which he approached the subject.

I wish to direct the attention of the House, particularly of the Minister of Defence, to one or two points which concern the pay of other ranks and the pay of officers. I will try to avoid repeating what has been so ably said by my right hon. Friend the Member for Horsham (Earl Winterton), who opened the Debate, and other hon. Members, as to the general reasons for bringing up this matter. I would like to take up what the right hon. Member for Bassetlaw (Mr. Bellenger) had to say in general about his approach to the problem of pay rates at the present time.

We are all alive to the fact that we must carry at the back of our minds that any substantial rise in Army or Service pay rates must have an impact on the economy of the nation. I wish to say to the right hon. Gentleman that the average citizen has too little knowledge of the many factors which go to make up what is the case for some increase in pay for some, if not all, other ranks and some, if not all, junior and middle officers. That is why I was glad to hear my hon. and gallant Friend the Member for Worthing (Brigadier Prior-Palmer) say that this matter needs a public inquiry. I realise that the Government have been going into this matter, and we have been told that for some time by the Service Ministers. We have great confidence in the close consideration they have given to it. But, since this matter has an impact on the economy of the country as a whole, it is necessary that public opinion should be informed, and I suggest that one of the ways in which public opinion can be informed is by way of close examination of Service pay by a Select Committee, or a Royal Commission as my hon. and gallant Friend suggested. I put that most emphatically to the right hon. Gentleman

Public opinion needs further information. Letters that appear in the Press are really unsatisfactory, as the right hon. Gentleman knows. They only stress one side of the matter. In many people's minds they leave the feeling that something is very wrong. From what has been said from these Benches and by hon. Members opposite today, the public must have a feeling, after reading this Debate —subject to anything the right hon. Gentleman is to tell us—that something has gone wrong in the relationship of the pay of other ranks, particularly, and average civilian earnings. In order to get that put right, we want public opinion to know the facts.

The right hon. Member for Bassetlaw referred to a number of anomalies. Quite rightly, he did not go into many details. We discussed this matter with him last July when he was on the Treasury Bench and he told us that he had much sympathy with the position of those affected by the anomalies. There are anomalies in the higher non-commissioned ranks and anomalies which were referred to, in passing, by the noble Lord. Some officers of middle rank, captain and major, get less than they did in 1946. Certainly those anomalies should be dealt with. This is not the proper place in which to deal with them, because one would have to go into such detail and bore the House and we might have the awkward problem of a Count if I were to go into too many details. I am sure these matters have been drawn to the attention of the right hon. Gentleman, and I hope he will say that he is able to offer some hope that in the immediate future cases of real hardship, cases where the more senior ranks —not those right at the top—do not seem to be getting the reward they should, will be looked into, and that he has some improvement in mind.

Everyone is agreed that there must be a broad relationship between the pay of other ranks and that of civilian earnings—not civilian wages, because that is an unsatisfactory comparison as in the Services there can be no overtime payment. My hon. and gallant Friend the Member for Worthing has put this point and I wish to stress it by adding that it is alas a fact that in the Army—and I believe, also, in the Air Force—recruiting to the technical branches is so bad. That is largely due to the fact that a man who would have been the most likely to volunteer for a technical branch of a Service knows he can get higher earnings in civilian life.

I would agree with the right hon. Gentleman if he said that pay is not the only thing which induces people to enter the Services. There is the whole spirit of the Service and the general standard of service and its conditions which operate on the man's mind, but, on the other hand, pay may be the main factor which discourages him from joining the Service; and I suggest that happens today. If the right hon. Gentleman looks at the pay code for other ranks, bearing in mind points which have been made about rising earnings since 1946 and the relationship of the average pay to the earnings, he will see that there is a case for introducing higher rates somewhere for skilled men, even if there may not be any case proved to him for raising the lowest level of Army or Service pay.

Let me put it in another way, in order to make sure that he understands the point. I think there is a case for increasing the pay of the two-star and higher-skilled type of man so that we can raise the average of pay in the Services and we may in that way produce a closer relationship between average pay and civilian earnings. These averages are not very satisfactory to talk about in the House because we may not be talking on the same basis of assumption on the facts. I think there is a good case for rewarding skill—technical skill and skill in the ordinary fighting duties of any Service—with a higher rate of pay.

In my opinion there is also a case which could be easily proved for increasing the pay in the higher non-commissioned ranks. Senior warrant officers and staff sergeants have found with the operation of taxation and present difficulties, particularly that of accommodation, that they have lost something since the 1938 rates and certainly since the 1945 rates. I have previously pointed out that a staff sergeant or senior N.C.O. working in London, who may be very important to the Territorial Army, has lost something between £40 and £50 a year between what he gets now and what he had before the introduction of the pay code.

Turning to the question of officers' pay, there have been letters in the Press proving that in many individual cases today there are among young married officers tremendous hardships, particularly in the ranks of captain and major. These men are entirely unable without assistance— perhaps their wives have to go out and work—to keep up the standard of life which is desirable in the case of an officer in His Majesty's service. I know that the right hon. Gentleman may say "Those are individual cases. Can you prove that it is everyone who is suffering like that?" All I can tell the House is that many people have written to me stating facts which show conclusively that they are in serious difficulties and that they find what they are called upon to do too much for the income which they are given.

That applies to young and perhaps I might say middle-aged officers, not only when they are serving at home, but also when they are serving overseas, where in many of the stations the cost of living is enormous, and greater than the local overseas allowance now awarded. In passing, I imagine that Army, R.A.F. and Naval officers find, if they are posted abroad and are living, say, in one of the Colonies, that their pay is subject to the full rate of Income Tax payable in this country, whereas civil servants who are also serving His Majesty in those countries are only taxed on the local basis. That is all wrong and there ought to be a proper comparison between the two. That is something which could be got over quite easily if the right hon. Gentleman tackled it and got the support of the Treasury.

If the right hon. Gentleman wants the best type of man who has leanings towards Service life, he must expect that man to look not only at what he gets today and next year, not at what he will get immediately he is married, but what kind of a life he will have when he gets to the top. It is unpopular in this House to introduce arguments about what generals and field-marshals might be getting, but it is anomalous that if one gets right to the top of one of the three Fighting Services one will find oneself getting £500 a year less than the man who gets to the top of a civil Department as a civil servant. That must be wrong. I know that we cannot acknowledge their services only in terms of money but it is fantastic that we should be prepared to pay our most successful general, admiral or air marshal £500 a year less than we are prepared to pay our most successful civil servant. Attention should be given to that matter.

I hope that the right hon. Gentleman will tell us that he is in favour of an inquiry by people outside Government Departments, that he is in favour of an inquiry by a Select Committee or commission which will put the facts before the public. But this will take time, and so many people are suffering hardship that there is a case for something being done at once. We have in the course of this year suggested one or two things which might help. Let me take the question of officers first, merely because that is convenient and not because I think that officers should be treated first before other ranks.

Officers could be helped considerably if Purchase Tax were taken off uniform. Officers and other ranks could be helped, if the matter of rent allowance or lodging allowance, or whatever it is called, were looked into and more favourable rates were given in areas where there is a scarcity of married quarters and housing accomodation in general. In some places the difference in rent which an officer has to pay if he is lucky enough to get official married quarters and the rent he has to pay if he is not so lucky is something like £20 a month. That is a tremendous burden on the unlucky officer. The right hon. Gentleman might encourage the Service Departments, with the help of the Treasury, to come to the rescue of these men who, through no fault of their own, are unable to get married quarters. That applies equally to officers and other ranks.

There is a good deal of argument at the present time in favour of exempting married allowance from tax, pending a full inquiry into the question of pay. I hope the right hon. Gentleman will consider that. It would relieve both other ranks and officers and would get over one of the difficulties over which he has tried to get, in the case of officers, by the transitional allowance which I believe is to come to an end shortly. If he cannot do that, I hope he will at least see that this transitional allowance continues.

The matter we are debating is of enormous importance for the reason which my right hon. Friend who opened the Debate put to the House. The success, health and strength of our three Fighting Services upon whom we depend for our security depends in its turn upon the standard of the volunteers. Though we may be quite right in saying that it is not pay that will draw them in, we should also be right in saying that it is pay that may push some of them out. Even then we should be right in saying in respect of those who have come into the Services despite the pay, that we in this House should do all we can to accord terms of justice and reasonableness in the pay which we offer them.

7.57 P.m.

There is a great deal to be said for the suggestion which has been made that a committee should inquire into and report upon Service rates of pay. In supporting that recommendation, I would remind the Minister of Defence that the most acceptable rates of pay ever introduced into the Navy were introduced after the 1914–18 war as a result of the deliberations of a committee. They were based on the recommendations of the Jerram Committee. Those rates of pay caused great satisfaction in the Service at the time.

There can be no doubt whatever that there is discontent in the Services at present about rates of pay. This is probably due to the fact that, as my right hon. Friend the Member for Bassetlaw (Mr. Bellenger) said, certain miscalculations have been made by the Government. One of these concerns rates of Income Tax and another concerns the cost of living. The cost of living has risen by something like 12½ per cent, since the new pay code was introduced. It is true that these causes of discontent might be removed should the cost of living fall and should Income Tax be reduced, but I think that there will still be other causes for disquiet in the Services.

I would like to mention three causes in the Navy, a Service with which no one has dealt up to the present. In the main these effect the lower deck and in particular the petty officer and the chief petty officer class of the Navy. The main causes of discontent are, firstly, that the new pay code for chief petty officers in the Navy, and particularly for skilled tradesmen such as artificer branches, do not compare as well as they should do with that for the skilled branches of the other Services. The hon. Member for North Blackpool (Mr. Low) was correct when he said that the question of rates of pay for these skilled branches in the Forces will need to be reconsidered with a view to increasing them. From the reports I receive from various naval depots, I believe that we are getting an insufficient number of recruits for some of the artificer branches of the Navy. That possibly applies to the other Forces as well. But the fact is that there is discontent about it.

The second point is that the differences within the rates of pay are too small to encourage men to accept the responsi- bilities that they are called upon to accept. I agree that this raises a very difficult problem, and whilst I think it was desirable that the Government should have done what they did at that time, namely, try to reduce the big differences that then existed, we must now consider what forms of incentive will induce people to accept responsibilities, and that is particularly true in the case of skilled men, because there is no doubt that the future of the Services depends upon the type of men we get, whether it be in the Navy or the other Services.

The third point I wish to make is one where I think there exists some just cause for complaint. Many men at present in the Navy as chief and petty officers were, at the end of the war, drawing above the present pay code. Their pay has not been reduced. It has been kept up to what it was in 1945, but it means that they are waiting 10 years in some cases before they get any addition at all. It is no incentive to a man if he has to wait 10 years after 1945 before he obtains any reward for his service. In any case it does not allow for the increase in the cost of living.

The rates of pension under the new Pay Code are also considered to be exceedingly poor. I urge the Minister of Defence to consider this proposal of appointing a committee to inquire into these matters. Let us have on the committee some representation of the various branches of the Service. I cannot see that that would do any harm, and we would then have first-hand information as to what are the particular complaints, and they could receive the attention which they merit if we want to get a satisfactory solution to this difficult problem.

8.0 p.m.

It is appropriate that one from this side of the House who had the honour of serving in the Royal Navy should speak, though only briefly, in this Debate. I should not like it to be thought that those of us on this side of the House who know of the Navy from practical experience, were not in complete agreement with the whole argument which has been put forward on behalf of the Army and the Air Force in the course of our discussions. I am certain that the right hon. Gentleman must feel that no attack is intended either upon himself or on any of the Service Ministers, nor yet on the Government as a whole. The whole purpose of this Debate is to bring to light what we believe to be a serious state of affairs and one which ought to be remedied as soon as possible.

We all desire two things: to get the numbers into the three Services and, having got the numbers, that the men who are there should be contented. The right hon. Gentleman the Member for Bassetlaw (Mr. Bellenger) pointed out that people joined the Royal Navy because they happened to have the sea in their blood. I entirely agree with him. That is the kind of man we want to get into the Service. But let him remember that when one joins the Service because one has the sea in one's blood, one probably has not a wife and children. It is a very different state of affairs ten years later when one has a wife and family, perhaps many thousands of miles away, and one feels that they have not the amount of money necessary to keep them in the state in which they ought to be kept.

I do not think we shall ever get that complete contentment which we wish for until there is some very close connection between the pay of the Services and the pay of similar persons employed in industry. I believe that this Debate tonight is at a timely period, because it looks as if what has happened before is beginning to happen again. I do not need to remind the right hon. Gentleman that it was, at the time, the great mutiny at the Nore and Spithead in 1798 that led to the raising of the pay of the private soldier to a shilling a day, at which figure it stood for 114 years. I know perfectly well that I as a naval lieutenant in 1914 was receiving 10s. a day which those who had gone before me first acquired in the year 1843. We do not want these things to go on. It, was a serious thing that a young officer in 1914, 1915 and 1916, living as cheaply as he could, could send only £7 a month to enable his wife and children to live. That is the sort of situation which would appear to be arising again.

The White Paper, as I read it, did set out to equate the pay of the Services to the pay of those in industry. From the evidence which has been submitted to this House, there can be no doubt that that basis has been departed from altogether. We have had particulars and figures given to us by my right hon. Friend, and other hon. and right hon. Members, which seem to prove conclusively that we have departed from that basis. There is no doubt that since the White Paper was issued, the pay of civilians has gone up by about £1 a week, whereas the pay of the Services has stood still. I was sorry when I heard the right hon. Member for Bassetlaw introduce the financial position of the country. That is the old story that the Services always get. They are always told that the financial position of the country is such that it is quite incapable of bearing the burden of any increase in their pay and emoluments, no matter how low these may have fallen below those of the civilian population.

I should say that the pay of the Services is not a matter of great importance in regard to the financial position of the country. It is not as though it was the case of an industry demanding higher pay, which would mean that other industries would follow suit. The Navy, Army and Air Force are outside that circle. I do not believe that anyone would grudge or take advantage of the fact that their pay and allowances were raised to the level which the civilians enjoy. It has been suggested that a committee should be set up, something on the lines of the Terrain Committee so far as the Navy was concerned—and it may be that there would have to be other committees for the Army and the Air Force—but either one committee of that type or a committee for each Service to go into the whole of this matter again. I do not know what are the views of the right hon. Gentleman, but no doubt he will tell us. I ask that if such a committee is set up, once it reports there should be some machinery to try and keep the pay of the Services from lagging behind the pay of civilians.

There was one matter to which the hon. Member for North Edinburgh (Mr. Willis) alluded and on which I wish to comment. He pointed out that from the evidence he had received there was a feeling among the higher naval ratings, petty officers and chief petty officers, that there was too little difference between their pay and that of the immediately lower ratings to provide any inducement or incentive to them to go in for the higher rate. I believe that to be abundantly true. I think it is one of the things that the right hon. Gentleman might ask his right hon. Friend at the Admiralty to look into. It is not only the matter of pay; it also arises in the matter of pensions where there is very little difference indeed. I hope that the right hon. Gentleman will consider that this has been a useful Debate, and that we may have from him something that will give to us, and also to the Services, at least some satisfaction.

8.10 p.m.

I recognise fully that in the kind of Debate which has had to be arranged today it has been essential to restrict the case put by hon. Members, and it leaves one with insufficient time perhaps to deal in detail with all the various aspects of Service pay which have been raised. As the noble Lord the Member for Horsham (Earl Winterton) said, we have not been able to have a full day's Debate as he had hoped. I say at once, first, that I appreciate very much the tone of the Debate. Second, I welcome the fact that the matter has been raised so that we might have in print a conspectus of the general views of the House on Service pay and matters which bring anxiety to hon. Members at present, so that this can be examined to see whether any remedy can be brought about.

I think that it can be demonstrated that in certain instances the Pay Code may bear hardly upon a certain section or sections of the Forces. I say that from this side of the House, and I assure the noble Lord that I am no less concerned than he or any other hon. Member to ensure that officers and men of His Majesty's Forces are contented. After all, that is the prerequisite of their being efficient. I should add that any effective adjustment of this complex code could hardly be undertaken without the most careful preliminary study of all the relevant facts. The hon. and gallant Member for Worthing (Brigadier Prior-Palmer) pointed out that the Pay Code has been simplified since the end of the war. Nevertheless, it is a most detailed and complex Code. I make the promise that I will have the subject investigated. If there is agreement on the evidence submitted that genuine hardship exists anywhere, steps will be taken to remove that hardship.

I am sure that hon. Members will allow me to offer a few general remarks upon the situation. The economic situation of the country is of primary account in any approach we make to this problem. I recognise what was said about the total overall cost of the pay alone of the Forces. I dare say that to some people it may not appear to be a very large factor, but indeed it is a large factor today. The fact is that in present circumstances we have had to keep Forces which must be appreciably larger in numbers than was the case between the two great wars, because of commitments overseas and the slowness there has been in getting a peace settlement.

The total overall cost of pay in the Service Votes today, excluding terminals arising purely from war settlements, is more than 30 per cent, of the total. One of the great problems in the present economic situation which must be considered by the Minister of Defence is that of being able to get enough money to make progress with the re-equipment on modern lines of every branch of the Services. We must keep the whole economic position in mind. I am certain that all hon. Members will wish to avoid the experience of 1924 to 1925 when, after the first great war, we had to make economies which set entirely new rates of pay. Afterwards there were the economies of 1931 to 1935. The whole approach of hon. Members has been different on this occasion. I agree with the noble Lord the Member for Horsham on that point. The great majority of hon. Members want stable as well as good conditions for the Forces.

The whole object in bringing the new Pay Code into operation, with the authority of the House, was to avoid as far as possible anything in the nature of short-term adjustments. We wanted to have a long-term basis which would not be subject to the downward fluctuation which we experienced in 1924–25 and in 1931–36. The White Paper pointed out that that was the object of the scheme submitted. We must remember also the general position of the Government in relation to the case put to the House in the White Paper on Personal Incomes, Costs and Prices. If we are to move as a Government for wholesale review of general rates of pay for any particular Government service, military or civil, that will have a very great effect upon the rest of industry. Whatever we do would have to be most carefully considered in detail.

Would the right hon. Gentleman develop that point further? I do not quite follow. He said that it would have a great effect on industry generally?

I suggest that if, in regard to those in Government Services, we were to make large adjustments of the rates of pay, we would not give the proper lead to industry to observe the conditions of the White Paper on Personal Incomes in the present national economic circumstances. I turn now to what was said by the noble Lord on figures for comparable civil employment which were taken as the basis of comparison in drawing up the Pay Code. As I understood him, he said that the figures showed that overall pay increases, excluding salaries, given to workers since 1945 showed that the rates had gone up from about 114s. a week by about 20s. a week. I calculate that to be an increase of 19 per cent. I have consulted the Ministry of Labour Index of Wages, and I find that from December, 1945, until April, 1948—the latest available figures which I can find— the index figure increased from 158 to 174. That is an increase of 16s., or 11 per cent. Unless I could see in some detail the exact source from which the figures have been taken, I would rather stick to the general average which I have just given. I would say that the increase was about 11 per cent.

The right hon. Gentleman will appreciate that I had to give the figures very rapidly. As far as we on this side of the House are concerned we do not ask the right hon. Gentleman to go into the matter at this stage provided that he will consider the figures we have given.

There may be a little confusion. It will be found, at Table 141 in the April, 1948, issue of the Monthly Digest of Statistics, that every figure given by my noble Friend is exactly correct.

I am sure that if the hon. Member has been devilling for the noble Lord—

I do not say that in any derogatory sense. I am sure that, like us, the party opposite have groups of Members who concert together and help each other on matters of this kind. I am not in any way attempting to be humorous. All I say is that if the hon. Gentleman has been devilling Service figures, I am sure that there is something in them.

Will the right hon. Gentleman permit me to say, as this is a friendly Debate, that my hon. Friend the Member for North Blackpool (Mr. Low) has a far more brilliant brain than I have, especially in the case of figures? After what he has said, I am convinced that my figures were right.

What I was going on to say is that I have been very interested in what hon. Members have raised at Question Time in the last few months in relation to the percentage of increase, figures of which I have given but which I will check with the figures given by the hon. Gentleman opposite. It must be remembered that men in the Services, who receive a good deal of their emoluments in kind, in food, clothing, and, wherever it is available, accommodation as well, are getting a good deal of the increase in the cost of living cushioned for them by being actually provided with the commodities which have increased in price. It seems to me that hon. Members cannot raise the general case for a wholesale review of the basic rate without taking that into consideration.

There has been a little difference of approach from different benches on the general matter. I have promised that I will have every one of the points raised examined, whether it was submitted on the general case for revising the whole Code or on the case for modifying particular sections of the Code, but I must say that I could not, on the evidence so far submitted to me, say that I feel that there is a case either for a Royal Commission or even a Select Committee of the House for a general inquiry or review of the basic rates set up under the 1945 Pay Code at the present time. I must make that quite clear.

When considering the various points which have been raised, is the right hon. Gentleman prepared to consider that a soldier who is dissatisfied with his pay shall be allowed to retire from the Army?

; I think there is a way for a man to get out honourably from his commitments, if he enlisted as a Regular, if he makes some contribution in return for what he has gained from the State during the period which he has spent in the Forces; he has a right to discharge by purchase, and, otherwise, under special compassionate conditions. Beyond that, I will not go tonight, although the hon. Member may put all his bait down in front of me.

I must, however, deal with a question which was raised regarding the effect on recruitment. This matter of recruitment is one of great concern to us at present, but I would ask if it is really true that increases in pay of the kind suggested would make a marked difference to recruitment at the present time? I think there are many other reasons, the principal one probably being that of the usual experience after a war, a feeling of war weariness, affecting this question of recruitment. I should say that, while I am disappointed that, in the last year especially, we have not been recruiting at a greater rate, I might easily have got worse figures.

After all, since early in 1946, we have recruited 145,000 men for the Regular entry into the Services, plus nearly another 60,000 re-enlisted under the bounty system for three, four or five years' engagements. I think that would compare very favourably with the same period between the wars with regard to enlistment, although I am still anxious to get a much better recruitment than we are getting now. But I must think very carefully before I start increasing pay and allowances with the sole idea of improving the rate of recruitment.

Moreover, since the new Services Pay Code came into effect, the Government perhaps, have not been given sufficient credit for having introduced a number of Income Tax concessions which will give material relief to many people in the middle and lower income groups. For example, the earned income relief has been increased from one-sixth to one-fifth and the band of taxable income chargeable at the reduced rate of tax has been widened from £125 to £250. As a result of these changes, a single man with an earned income of £500 a year gets a tax reduction of £26 and a married man with one child with an earned income of £800 a year—and I take that level as being that of the senior captain or major—gets a tax reduction of £30 a year. The new Pay Code for officers and men published in 1945 and 1946, having been designed for long-term conditions, took account of these facts.

I therefore feel that I should do far better to initiate special inquiries into specific cases of hardship in Service conditions which require immediate consideration for amelioration.

The point which the right hon. Gentleman has just raised surely affects civilians as well as the Services equally? We are endeavouring to raise the Forces' rate of pay so that they more nearly relate to those of civilians, and, therefore, the right hon. Gentleman's argument falls completely to the ground.

I can give a very large number of cases of officers who served in the last war and went back to the big industries, and who were well qualified, but who are certainly not as well off in those industries today as compared with those who remained in the Services. If we have comparisons of that kind, I can assure the House that they can be put from both angles, as I have had many of these cases put to me specially.

That would surely only apply to officers, and not to other ranks at all?

It would not, generally, apply to men who never took a commission at all, unless they had very good jobs, such as that of warrant officer, with special allowances. I agree that it would not apply to other ranks at all, but, when we talk of comparisons with outside and we compare officers who have left the Services and gone back into industry, their position is that, in industry, some of them are very much worse off now than they were when serving with the Forces.

The new Pay Code when published, while generally welcomed, was criticised in a number of respects, and one of the features most criticised was the subjection of the various allowances, and particularly the marriage allowance, which has been referred to quite often, to Income Tax. I must maintain the view that, particularly, with the tax at its present level, there can be little justification for relieving a substantial part of the Service man's emoluments from the burden which falls on everyone else in the national life. There is no doubt that, with the high rate of Income Tax during the war, the Serviceman enjoyed a great advantage over other taxpayers while the war was on; he was given that special concession because the war was on, but, in the present economic situation, there is little justification for taking the view that officers and men should have an advantage in net income over other people.

I have had cases of people worse off quoted to me, and I will have them examined, but, generally speaking, I know for a fact that the position is the other way. Moreover those who lost money when the scheme was brought in found that, by means of the supplementary allowances, they were cushioned against the loss. I was asked what I intended to do about that. The position is that we are decreasing those supplementary allowances by regular stages until they will expire in 1950, and in the course of that time some of the people concerned will have got promotion and some will have got the advantage of the increase in Income Tax allowances which has been provided by the Chancellor of the Exchequer. The only real argument which is relevant is whether gross Service pay is adequate for the responsibility and conditions of the service involved.

I should like to put on record tonight one or two facts about the career offered to the junior officer in the Army because, like hon. Members opposite, I am very anxious to recruit him. On first commissioning at the age of 21, he receives 13s. a day, or £240 a year basic pay, plus his food and accommodation, or allowances in lieu. After that he has a guaranteed career up to the rank of major which he reaches after 13 years' service at the age of 34 or thereabouts, as compared with 17 years' service which he had to do before the war in order to reach his majority. Assuming he is married, his pay plus marriage allowance after 13 years' service is of the order of £870 a year, rising after 6 years' service in the rank to over £1,000 a year, and he gets rations or ration allowance for himself in addition. I would point out that he has a guaranteed career. His promotion is conditioned only by length of service, and he has a very good chance of going further.

From those facts I do not see anything inadequate in a career like that, or in pay of that order, in comparison with equivalent careers open to other boys on leaving school at the age of 18. We have heard a great deal about the position, of the junior officer, but I think it only right to remind the House that relatively speaking we have done a great deal to help him both during the war and since. Under the new Pay Code the junior officer draws the same flat rate of marriage allowance as a major, and he also benefits by the jump in basic pay from promotion to captain at the age of about 26 or 27 of 4s. a day and 6s. in the case of officers entitled to qualification pay. Consistently the percentage increases in pay given to junior officers have been greater m the junior than in the senior ranks. We have had that in mind in the Service Ministries ever since 1946. Every change which has been made in that direction has given the weight of advantage in favour of the junior officers.

In regard to the N.C.O.'s pay, which has been mentioned tonight, the pay and marriage allowance of married non-commissioned officers varies between £240 a year for a corporal in the lowest trade groups to £400 a year for a warrant officer, with clothing and food in addition, or a ration allowance, untaxed, in lieu. These are not in general exceptionally low rates; but, in spite of all that I have said, we shall still have the general position examined.

I should like to say a word about one or two of the disadvantages which have been referred to tonight, not the least of which was mentioned by the hon. and gallant Member for Worthing, and which I admit is absolutely factual, such as the case of the man who was moved five times in three years—a very great hardship in many cases. There are a number of such disadvantages attached to a Service man's life, and which were all in our minds before they were stressed in the Debate, but, as was pointed out by my right hon. Friend the Member for Basset-law (Mr. Bellenger), they arise from the fact that a man who is serving in one of the military Services is under command and has to go at whatever time to whatever place he is told, to do the particular job to which he is assigned. If such a man wants to move his family with him he often pays a very high rent if he cannot get official quarters, and I admit that there are all too few of those official quarters.

Some allowance was made, as stated in the White Paper, for the necessary mobility of Service life in fixing the new rates, and further alleviations in the position are contemplated—I say that specifically—in the form of more generous disturbance allowances and allowances to cover the cost of travelling from home to the place of duty, which I think would give those in that position a wider selection of accommodation. I have been struck myself, in visiting staff colleges; how often, unless one can afford to live further away, one is confined to a high level price of accommodation in that particular area, due to the heavy demand. We are doing all we can to help in that direction, but I sometimes wish people would make more use of the local rent tribunals which are open to them, in order that they should not be unduly exploited.

We have also helped to a considerable extent, compared with the position between the wars, by the number of free travel warrants which we are retaining for the use of the Services. The withdrawal of the concession about free travel warrants was actually contemplated when we laid down the new Pay Code, but at any rate the Service Ministers have been sufficiently capable in their defence of that point to retain three of the free warrants a year.

There are a number of disadvantages in Service life of which I am only too fully aware and which we should like to ameliorate as far as possible, but there are also advantages in Service life.

Would the right hon. Gentleman agree that, of all the hardships, this one dealing with the cost of accommodation is probably the greatest of all?

I have been told by a number of officers, when I have been discussing the matter with them myself, that it is certainly outstanding.

I have indicated how we are attempting to deal with some of the disadvantages and I should now like hon. Members to consider the many advantages. Annual increments of pay—we have not heard much about that point, except from my hon. Friend the Member for North Edinburgh (Mr. Willis). He talked about the long time some of the petty officers would have to wait for promotion in the Royal Navy; but that is because, in the last year or two, we found a very large number of petty officers had been stepped up to the rank and, rather than reduce them in rank because we were over-manned in those sections, we decided that they should keep the rank, so that perhaps it will take a little longer for them to get promotion. It is not generally realised, I think, that these regular increases in pay with length of service are very valuable in a man's career, as are the opportunities for promotion and grant of pension—a pension which comes to men and officers at a comparatively early age. Their career starts at the age of 18 to 21, as the case may be, and after serving 22 years, they receive a most substantial recognition of service—hardly to be obtained in any other occupation at the same rate and the same age. Neither is it fully realised, I think—in spite of the overtime that they might work, perhaps without extra wages—how generous is the rate of paid leave in the Services, compared with a large number of occupations outside.

At a time when the Government are urging on all classes of workers the importance of restraint in the national interest in pressing claims for increases of pay, hon. Members on both sides of the House, I am sure, recognise how difficult it is for us to take action in regard to the Forces which might be construed, as I indicated just now, as a wide departure from the policy announced in the White Paper on Personal Incomes, Costs and Prices. But I will undertake to study with my Service colleagues the observations bearing on all the features of Service Pay Codes raised tonight, and which have been raised, I think, in such a temperate and well-meaning spirit. For the reasons I have explained earlier, I cannot undertake at this stage any general revision of the rates of pay. I can make no promises. However, I assure hon. Members that, if our examination shows that the present arrangements bear hardly upon members of the Armed Forces by reason of the special expenses of Service life, we shall definitely consider sympathetically the steps we can take to alleviate the position.

Service Disablement Pensions

8.41 p.m.

The subject of disability pensions is, I am quite sure, not one which this House would wish to discuss in a party spirit. It is not a matter for one party or another, or even for the Government to the exclusion of others in the community. It is a matter for all of us whether here, or as employers, or as ordinary citizens; and there is much that we can do in a great variety of ways to make more agreeable the life of those who have been crippled and maimed in our service. Whether it is the "welcome home"; or the sympathy which the employer shows in fixing up a suitable job; whether it is the nursing and the attention which the Ministry of Pensions give in their hospitals to those who have to come back from time to time —and many of them many times—whether it is the understanding which the Ministry of Labour and their officials give in trying to place them—all of us can make a contribution, and it is important that, as the years roll on, and these men pass into middle and old age, they should feel that the country has not forgotten them.

I must be brief tonight. We had the advantage of a very short Debate about a fortnight ago in which some of the facts were brought out, and we have also had tonight a Debate in which many of the figures relating to the change in our economic circumstances in recent years have been given in relation to the pay of men and officers in the Armed Forces. It will not, therefore, be necessary for me to repeat what was said before or much of the argument that has been made today. It is, I think, generally recognised and admitted in all parts of the House that standards of living have risen between 1919 and the present day; that as the inflation has proceeded, the cost of living has increased, and that adjustments have had to be made in remuneration to take account of those changes.

It is a fact that since 1919, progressively, and more particularly in the last 10 years, wages have risen very materially —something between 60 per cent, and 200 per cent. The value of the £ has gone down. Since 1938 it has gone down from 20s. to 12s. In every sphere there has been an economic change. The payments made by the nation to all classes of hurt and maimed and old people have all. been increased. Many of them have been increased by 50 per cent, and some have been doubled. Directors' fees, professional fees, the earnings of doctors, solicitors, journalists, even of Members of Parliament, have all been raised very materially since 1919. Substantial steps of the rise have taken place during the last 10 years. I shall not do more than say that it is common ground that these things are so. I then want to show how our disabled ex-Service men of the two wars, are faring in these changed economic circumstances.

There are two classes of the disabled for the purpose of this argument, those who were disabled in the highest degree, who are called 100 per cent, disabled, and those who are partially disabled. In his reply to the brief Debate two weeks ago, the Minister underlined something that I had already said or implied, namely, that substantial improvements have already been made in the position of those who have been disabled in the highest degree. I want the House to understand that we all know that to be so. We acknowledge it and we ex-Service men express our appreciation to the wartime Government and the present Government for the improvements that have been made for the men disabled in the highest degree. There are 46,000 men who are said to be 100 per cent, pensioners. Of those, 13,000—it may be 15,000, because my figure is not quite up to date but it is some figure between a quarter and a third of that number—have had the advantage of receiving some of the special allowances which have been introduced by the war-time Government and the present.

The attendance allowance, for example, has been doubled, and that makes a very valuable aid to a man who is disabled in the highest degree; but I believe that only 4,000 or 5,000 of all our disabled persons receive it. An unemployability allowance has been introduced and a few thousand receive that at the rate of £1 a week; and a hardship allowance, which takes account of the man who has had to go into a worse job than the one he was in before, of £1 a week has been introduced. That is paid to 2,000 or 3,000 men, and the Minister thought when last we debated this matter that that indicated that only so small a number as that endured that particular hardship, otherwise more would be getting the benefit. He will have discovered since then that there is a fallacy in that argument. This extra £1 is only paid if, after having been wounded and disabled, a man has had to go back to a worse job than he was in before. Obviously all these young men who went out of school to war and never had a job before can never become eligible for that allowance, and although that allowance has been extended to some ranges of the men of the first world war, there is still a large percentage of them to whom it will never apply. I thank the Government for thinking of it and increasing it, but it is only right to point out that a very few thousand benefit from it.

Before I leave these 46,000 men disabled in the highest degree, I want the House to be aware of the money they are getting so that we may have it in our minds at a later stage in my argument. Those who are able to work receive what is called a flat rate basic pension of £2 5s. a week in the case of a private, and in addition they get 10 shillings a week for a wife, and that is all; so that the pension of the private soldier with a wife, if he can work, is £2 15s. a week. If he is one of the few thousand who ire disabled in a specially high degree, he may get an extra £1 a week attendant allowance. If he is one of some few scores of men who have lost both hands and both eyes or suffered some similar double damage, he may get £2 a week attendant allowance, but there are only a few score of them. I emphasise these facts because I know that the Ministry will take credit for having introduced these relatively high allowances for these few men. While thanking the Ministry for these allowances, I want to emphasise that they are no answer to the general question which I am hoping to raise tonight. I have not time to go into further details, but I would point out that some of the 46,000 of whom I have been speaking—possibly as many as 60 per cent.—are able to work.

I now come to a much larger number, namely, the 650,000 men who receive what are called partial pensions as a percentage of the basic rate based upon a medical assessment. I will not repeat the points made in an earlier Debate on medical assessment, except to remind the House that throughout the history of modern pensions' law and practice all parties have recognised that the pension is paid, not for loss of earning power but upon a medical assessment of the handicap which the particular disability places upon the individual. That handicap is presumed to exist—and, believe me, it does exist—not merely in his work, but also in his play, and in his time of rest. Day and night the man has with him that handicap, be it great or small, always wearing him down and as he gets older his capacity to stick to a job, or to enjoy his pleasure or his leisure, becomes the harder. These pensions were granted to compensate for the day-to-day handicap, and were, therefore, in the nature of a make-weight, to make up to the man for what he had lost.

These pensions were paid in the coin of the Realm of the time when they were fixed, which was 1919. They continued to be paid, at the full rate of £2 a week then fixed, throughout the years of slump; and in 1931, when the cost of living had dropped 80 points, and when wages were cut and food and commodities were cheap, the pension of the ex-Service man was not dropped. All credit to the Government of the day which maintained it, and to Governments of all parties for that period. But the implication of that must not be lost on the House. At that time, because the cost of living and wages and benefits all round had dropped so much, the ex-Service man, because his benefit did not drop, was in a relatively much better position. Since then, he has seen his position deteriorate as the cost of living has slowly risen from 1931 until the present day; it has crept up and up 100 points in that time. That is the position in which we find ourselves.

Most of these 650,000 men are in work, and some people think—and so the Minister has implied—that on that account, we need not worry so much about them. I hope I have made it clear that the pension was never given to compensate them for unemployment, but to compensate for the handicap which arises whether they are in or out of work. There is one point which was made so strongly by the Minister that I shall venture to answer him. He said that an inquiry he had made at the Ministry of Labour disclosed that only 6 per cent, of all these men were unemployed; a remarkable figure, he said, and he implied—and, I believe, stated—that the efforts of Governments—he was not making a party point; it was the efforts of the wartime Government and his own Government—during the past 10 years were the cause of this high rate of employment amongst our disabled men.

Let me tell the House this extraordinary fact. Between 1922 and 1941 there was never a year in which the unemployment amongst our population as a whole was not higher than the unemployment amongst our disabled men. Therefore, it is no new factor that disabled men are employed. It is to their credit and to the credit of employers generally throughout the land that they have been continuously employed to a large extent ever since 1922. It is not, therefore, a new factor which in any way exculpates the Government or Parliament from now considering the economic changes in circumstances. It is clear to me that the reason for the fairly full employment of disabled men has been the good sense and sympathy of private employers, of local authorities and of Government employers, and the fact that the disabled man makes up for his handicap by doing an extraordinarily good job and is well worth employing. It is no argument for not adjusting the make-weight to modern conditions to say that so many of these men are employed.

If any increase in war pensions is made, I express the hope and wish that it shall be pro rata for officers and N.C.Os. I will not go over some of the arguments made in the previous Debate, but they are relevant to this consideration. If we want young men to take responsibility and to be leaders, commissioned or in the ranks, and if we want that leadership and discipline, without which no armed force and no nation can survive and succeed, then we must not take needless steps to put down officers and N.C.Os. from the small modest privileged position they have attained.

I understand that there is a society called B.L.E.S.M.A., the British Limbless Ex-Service Men's Association, which is putting forward a proposal—I have already seen it in the Press—to the effect that if anything is done now to raise the pension rates, the Government should raise the rates of the privates, corporals, sergeants and the W.O.2S up to the warrant officer's rate, thereby cutting out the modest differential between the ranks. That proposal is put forward because it is thought to be an economical way of doing what is required. With the limited facilities at my disposal, I have had a simple inquiry made of a limited number of disabled men of both wars, and I have discovered that out of every 100 disabled men, 87 are below the rank of corporal— I am not including the lance-corporal because he is not paid.

Here are some interesting figures. The private soldier's flat-rate pension is £2 5s. a week. The first-class warrant officer's flat-rate pension is 61s. 8d., which is a difference of 16s. 8d. The proposal which has been given a little currency is to raise the rates of the private, corporal and sergeant to 61s. 8d. If that is done, we add 35.3 per cent, to the pensions bill, whereas if we maintain the present differential and raise the private's rate by 16s. 8d. and the rates of the corporal, sergeant and W.O.1 and 2 by an appropriate amount proportional to their present emoluments, the extra cost to the Treasury will be 37.1 per cent., so that by abandoning the differentials—these modest few shillings which the sergeants and warrant officers get—we would save less than 2 per cent.

With so important a change in the structure understood in the Services, which is understood and accepted by men of the first world war who were disabled and have been receiving these rates for 30 years or more—with a step like this, which might have its repercussions upon a wider field of necessary discipline and authority—I submit that there is no case for making such a small differential for the sake of so small a saving. If, of course, the Government would think of raising the rates of all to the rates of the captain or the major, the Minister would not find the British Legion or the R.A.F. Association out of sympathy with him; but to fiddle with the thing by trying to do away with the differential of the corporal, the sergeant and the warrant officer, seems to me—as I hope I have shown to the House—to be not worth while.

I want to make only one reference to the miners' scheme. It is critical not of the benefits which they will receive, but of one of the provisions in their scheme which, I think, is on wrong lines and against following which I want to warn the Minister. What it does is to give an allowance in addition to the flat rate or basic pension and then to take away a part of that allowance in accordance with the man's earnings. It is, in fact, the test of earnings—a means test; it is open to all the disadvantages to which hon. Gentlemen opposite and many of those on this side of the House have objected for so long. For the disabled man it has a peculiarly bad effect. It is a positive incentive to him not to do the best he can, not to go to work, not to work so hard and not to get promotion. I assure hon. and right hon. Gentlemen that no money in the world can make a man happy if he is unfit. Certainly no money in the world can make a man happy if he is in any way cut off from some of the activities of life. Nothing can contribute so much to one's happiness as having to work, and having to work hard.

Therefore, anything which gives a man the feeling that if he does a bit more he will get a bit less, is bad psychology. That bad practice is included in the miners' scheme, and I beg the Minister, if he does consider raising soldiers' rates, not to follow that bad practice—for, believe me, it is a bad practice. It was after very careful consideration that this House took away the old Workmen's Compensation scheme which was based upon that practice, and replaced it by a flat rate of pension. We do not want to go back on that, even though the miners have made the mistake of doing so.

I have only one other observation to make about the mining industry, and that I make in all friendliness. In a Debate the other night much was made of the point that miners were justified in being first considered for a rise on the ground that their industry was the most hazardous. Well, I understand the feeling in the valleys where death is so near, where people are so circumscribed in their physical and their general conditions; I understand just how they feel about that, but, if it is a good argument to say that the risk which a man runs in his work in itself suggests the amount of compensation he should receive, then I submit to the House that the risks of war must be properly measured. I will say no more than that on this matter of comparison.

My next few words are about the Regular soldier, sailor and airman. While the emergency is on, and until the war officially comes to an end, the Regular serving soldier, sailor or airman is looked after by the Ministry of Pensions if anything happens to him. If an airman is hurt in the flight to Berlin, he will be looked after by the Ministry of Pensions and will have all the advantages we have won for him in this House, of appeal tribunals, giving him the benefit of the doubt, and all the rest. The moment the war officially is over, the Regular man goes back to the care of the Army, the Navy or the Air Force and they have to carry him on their official Vote. That ought to be altered. The Ministry of Pensions know their job well. They deal far more sympathetically and subject to rules which are better for the men, and if we are to have the Ministry of Pensions going on with this job so well, they might well be charged with the duty of looking after the small number of men who fall by the way in time of peace.

I feel that we owe to the men who have been disabled in our service something financial at the present time because of the change in values since we compensated them in 1919. It is a little ironical and sad that the better world we are trying to build—which all in this House, and I think nearly all in the country, would like to see, although we may differ about the way in which we shall reach it—that the open spaces which are to be made more and more available, so that the mountains may be seen by those who can see, the footpaths opened for those to walk upon who have legs and the birds heard by those who can hear—it is a little ironical that the men and women in our Services who preserved our way of life and made our advance towards these good things possible should be those who, for physical reasons, cannot enjoy those things. It rests upon the community at least to compensate them for the change in the cost of living which has benefited so many others in all classes, or at any rate in most classes. These men have saved our material civilisation and have saved many other hidden and spiritual things. We may well say of them—

9.7 p.m.

Except for some short Adjournment Debates, I believe this is the first Debate in the full House on questions of Ministry of Pensions work since this Parliament was called together. I wish we had more time for it than we have available, but I must take the opportunity, brief though it is, for I think the House will agree that, tonight, a representative of the Ministry should take up some time at this Box in reviewing the work which has been done in the last two or three years. I may refer to matters which hon. Members who are expert in this subject know already, but there are far too many outside, and even some in the House, who do not know all that has been done. At the end of our short Debate, if there are points which hon. Members have raised which require a further reply, my hon. Friend the Parliamentary Secretary will deal with them, if time permits.

I am sorry to interrupt the hon. Gentleman, and I know it is rather delicate to refer to matters which are the subject of discussion, but I think the full understanding was that the Parliamentary Secretary would reply to a number of my hon. Friends, and there is plenty of time to go on.

Certainly he is here, available to reply. Of course, there is a great deal which I must leave out, as I do not want to take up too much of the time of the House, but, perhaps, for convenience, I may mention some of the work of the Ministry of Pensions under four heads. I will take entitlement to pension and assessment of disability and will take the basic rate of pension to which the hon. Member for Lonsdale (Sir I. Fraser) principally referred in his eloquent speech. I will take supplementary payments to meet special needs and hardships, and also say a few words about the constructive services which are provided, such as the hospitals, limb fitting centres, care of orphan children, etc.

There was, between the two wars, great discontent and a good deal of grievance felt, as we all know, by ex-Service men about pensions. Much of this I believe arose out of problems of entitlement and assessment rather than out of the question of the amount of benefits. A considerable change in the provisions regarding entitlement and assessment was made by the Coalition Government in 1943. Since then, the administration of the Warrants has been made even more favourable for claimants by decisions of the High Court. I do not wish to spend any time in discussing these, except to say that I believe it is generally recognised that under the present Government, administration of these amended Royal Warrants has been sympathetic. That sympathetic consideration will continue. I think we may fairly say that thousands who would never had been entitled to war pensions between the wars are today receiving them.

Let me for a moment step out of the logical order and say something about the supplementary payments of various kinds which are being made. A list of the improvements made during the lifetime of the present Government was published in the OFFICIAL REPORT some time last May, and hon. Members have had an opportunity to read it, as have members of the Hansard Society. This long list of 42 changes and improvements made since September, 1945, is not sufficiently well known in the country. I do not intend to weary the House by going through every one of those 42 changes and improvements, but I wish to mention the more outstanding ones, and to take the opportunity of giving the House the latest figures about those who are benefiting from them.

There is, first, the unemployability supplement, which was not introduced by this Government, but which was increased in September, 1945, from 10s. to 20s. a week inclusive of National Health Insurance benefits. There are now 8,800 pensioners receiving this benefit at a total cost to the State of£469,400—

Before giving out those figures, will the Minister give us the total figures of pensioners so that we can judge whether 8,000 is a large or a very small proportion?

Certainly. The total figures of disabled pensioners in payment on 1st June was 752,590, costing some £37 million. Of those, 52,250 are regarded or assessed as 100 per cent, disabled, 636,540 are less than 100 per cent, disabled and 63,800 are less than 20 per cent, disabled. I must mention the introduction of the allowance of 16s. for the wholly dependent adult relative of the pensioner where he is in receipt of unemployability supplement or undergoing approved treatment; the introduction of an improved rate of constant attendance allowance of 40s. for very serious cases of disablement.

I am afraid that I cannot give the numbers who are receiving 40s. a week constant attendance allowance, but I can give the total amount of such allowances. The constant attendance allowances total £296,000 for 5,180 pensioners. Then there was introduced the special hardship allowance first of 11s. 3d. a week for the partially disabled pensioner of the 1939 world war who by reason of disablement was not able to resume his pre-service occupation or take up one of an equivalent standard. In February, 1946, that was introduced at 11s. 3d. a week. From May, 1948, it has been increased to a maximum of 20s. a week and extended to include partially disabled pensioners of the 1914 or earlier wars under certain conditions. At present this special hardship allowance is being paid to 2,430 pensioners at a cost of £85,500.

What did surprise me when I read it for the first time—and it seemed extraordinary that it was left to this Government to introduce—was that in February, 1946, there was introduced an allowance for wear and tear of clothing due to the wearing of an artificial limb, at £3 a year for a single limb and £5 in other circumstances. That, again in February, 1948, was increased from £3 to £5 and £5 to £8, respectively. It is now paid to 34,260 pensioners and costs £178,000 a year.

Then there are the pensions payable to widows of men who served in the 1914 war and died as a result of war service after 3rd September, 1939, irrespective of the date of marriage, which is a very considerable improvement; a pension for widows over 40 or under 40 with children or unable to earn was raised from 32s. 6d. to 35s.; the maximum rent allowance from 12s. to 15s. and a maximum pension for dependent widows of pensioners of the other ranks was raised from 22s. 6d. to 35s.; the maximum weekly rates of parents' pensions were raised, in one case from 15s. to 20s., in another from 22s. 6d. to 27s. 6d., and in another from 30s. to 40s. according to the circumstances. The rate for a total orphan was increased from 13s. 6d. to 20s. at the age of 15. Royal Warrant provision was made for pension in cases of the 1939 war in which disablement claimed more than seven years after the end of war service is attributable to or aggravated by war service. Allowances for wife and children of a disablement pensioner became payable irrespective of dates of marriage or of birth.

I could go on quoting from these figures, but I must miss out a good many of them in order not to weary the House though we must remember that they are exceedingly important to the individuals.

May I ask the Minister a question about one figure which puzzles me? He quoted a figure of 63,000 who are being paid pensions of less than 20 per cent. I understood that no pension was less than 20 per cent.

The total number of what we called "pensioners" for the sake of brevity was given as 752,000. In this figure are included some 63,800 persons with a disability of less than 20 per cent, who are receiving allowances.

I am sure the House will be gratified to learn of these increases, but surely in the main they are due to the increase in the cost of living and do not really represent any great gain financially.

I have already given the numbers of cases where entirely new classes were brought in irrespective of the cost of living. Later I will say something about the relationship of these pensions to the cost of living.

Is it not the general rule that those who are assessed with a disability of less than 20 per cent, get a final award, and is it not only in the most exceptional cases, if ever, that those with a disability of between 14 per cent, and 20 per cent, have a continuous pension?

Some of these are final weekly allowances and some are final gratuities, but that is really a small detailed point.

I really must try to complete part of this catalogue. I am trying to give the details briefly but I regard it as extremely important that they should be known. The allowances for legally adopted children and step-children were made in February, 1948, payable irrespective of the date of adoption or of the date of the pensioner's marriage to the child's mother. There, again, is an example of the introduction of a new group of persons not entitled to receive allowances. I am glad to say that up to date some 1,689 children have received benefit from this improvement in the pension system. The normal period of pension following a re-survey board has been changed. It has been one year; it is now a two-year period. In the current year this has meant an increase in our payments by £100,000. The sum may be considerably larger later because of the longer period of reassessment.

I think that I have dealt with most of the other outstanding examples of the improvements that have been made by the increase of allowances and by bringing within the scope of allowances large numbers of dependants of pensioners who had not previously been entitled to any payment at all. I will not attempt now to say any more about that very long list of improvements made already during the period of office of this Government. The House will see that numerous benefits have been introduced for the first time. They will see that, for the needy among the pensioners, the problems arising from the cost of living have been met. That is the point.

The unemployability allowances, and the like, were designed to meet the problems which the needy pensioner encounters because of the rise in the cost of living. That is why they were introduced. In large measure they have succeeded in their purpose. Hon. Members know from the letters which they receive from myself and the Parliamentary Secretary, or from the Ministry, that when examining the cases of individual pensioners the staff have instructions to make sure that every person gets everything to which he is entitled under this very large and comprehensive scheme of benefits which I have briefly summarised. I should like to say something about the constructive services which we supply at the Ministry.

Could the hon. Gentleman state the number of cases now receiving pension on account of tuberculosis which, some years previously, were not allowed for pension at all?

I regret that I do not happen to have, among the numerous figures with which I provided myself tonight, that particular one, but I would be glad if my hon. Friend would put a Question on the Order Paper so that it could be given to the House. I was about to say a word of acknowledgment of the very kind remarks which the hon. Member for Lonsdale made on the constructive services of the Ministry.

I think it is only fair, in the course of the first Debate for three years on the work on the Ministry, to allude to this, although I know there is nothing controversial about it and hon. Members are perhaps more interested in what I may say on the controversial issues. I want to say how much one has been impressed by personal contact with the hospital and other welfare services which my Ministry provides, and how much one has also been impressed by the research work on problems like that of paraplegia and that of the making and fitting of artificial limbs, for which I think we have gained an international reputation.

May I now say a word on the services provided for the children of disabled men? Apart from the ordinary allowances for children in their own homes, which are paid to the pensioners, we care for about 5,000 orphans and deprived children, and, in all, the sum of £249,600 is spent in education grants and £42,700 on the welfare of these particular children. It is a service on which I hope it may be possible at some later date to give the House more information, for it is one which must be dear to the heart of every Minister of Pensions. May I also refer to our re- habilitation work which has been going on for a number of years, and say that the emphasis in all these services has been on the effort to help the disabled men to re-enter the stream of the full normal life of the community? I agree with what was said by the hon. Member for Lonsdale that their happiness comes from being able to be at work again and to work with their fellows in the community.

We are striving in this constructive service to help the pensioners to do precisely that, and the announcement which I had the pleasure of making to the House last week about the supply of motor cars, which will in itself, when it is fully in operation, cost something in the region of £500,000 or £1 million, indicated a new provision, which is one of many that are being made, for this purpose of trying to help the pensioner to live, so far as his disabilities will allow him, a normal life, to meet the normal community, to drive in the sunshine when we have it, to visit his friends and relatives, accompanied sometimes in his car by relatives, so that he does not go about in solitude. Everything that I can do to aid this constructive service, I will do.

One thing that was done recently in the time of my immediate predecessor, and about which the House knows little or nothing so far, I would like to mention. I do not want to say a lot about it tonight, because it is still in the experimental stages, but I would like to allude to it, to indicate how we are trying to approach these problems. We have appointed some 25 welfare officers, which is, again, a new departure and something that has never been done before; in every region, there are welfare officers, and, if the service proves successful, we shall add to their number. This is for the purpose of meeting individual pensioners and talking to them as man to man or man to woman, getting to know the circumstances that control and make their lives, entering into the problems and difficulties, finding employment or solving the problems of rent or the behaviour of landlords, or whatever it may be which the pensioners are encountering in their daily life. I would indicate that the service has been introduced but that, as yet, it is experimental, and it is therefore too early to say whether it is a success or a failure, but I give that just as an indica- tion to the House of the kind of spirit in which the task is approached.

I think I have said enough to justify the claim that this Government has given the war pensioner a new deal, but the greatest improvement of all in the lot of the great majority of the disabled in these three years is due to the prevalence of full employment. The hon. Member for Lonsdale pointed out that unemployment among disabled men has always been higher than the average rate.

No, with all respect, the whole point of my argument was that from 1922 to 1941 unemployment among the disabled was lower in each of those years than the normal.

I am sorry. I evidently misunderstood the hon. Gentleman. That was, of course, at a time when the general rate was extremely high. At present it is higher than a general rate which is almost negligible, and which is so small that it hardly counts at all. I think we must be honest about this. Surely we must recognise that during the inter-war years, when unemployment was never at a lower level than 10 per cent., and was often up to a level of 25 per cent, or even 30 per cent., the lot of the war pensioner was very much worse than it is today.

I have given way about six or seven times already, and I want to make this point in my own way. I dare say hon. Members opposite will not agree with me, but I am not saying this from a personal or prejudiced point of view. I am saying it because I believe that it is true. During the years between the two wars, surely the lot of the unemployed man attempting to find a job among a total unemployment of anything from 1½ million to 2 million, was a great deal more difficult than it is today. Whatever the percentage may be today, it is undeniable that his opportunity of choice is far greater. It is not confined any longer to the car park, and if we were to return to competitive selection in the finding of employment, I believe it would be the disabled man who would all too often find himself pushed to the wall.

The total number of disabled pensioners, as I have said, is 752,590, and the total number drawing unemployability supplement is only 8,800. Other sources of information available, as I have said before, show that more than 80 per cent. of all war pensioners are in employment. It is a good thing that these opportunities exist and that the Remploy factories are being set up in parts of the country where unemployment is heavy, to try to provide additional opportunities. We must be glad, if we approach the matter in a constructive way, that these opportunities of work are there.

There are men among them working in all kinds of industries, and though we have discussed this subject many times and very much has been said about it outside, in the Press and at meetings of the British Legion and other bodies, no hon. Member nor anyone else has yet brought to my attention a single case of a war disabled person entitled to a pension whose sole source of income is his war pension. If such cases there be, I would like to know of them. So far, none have come to my attention, and none have come to the attention of my hon. Friend the Parliamentary Secretary who has been in his post for a considerable time. In the light of those facts, let us consider the question of the basic pension.

When the hon. Gentleman says "whose sole source of income is his war pension," would he include some other help which he may happen to get from welfare funds or other outside bodies in extreme cases?

I am saying that I know of no such case. If the noble Lord can produce a case, I shall be glad to look into it, but even if he can do so, I am sure such cases are very few indeed. I refer to the case of a man who is a war disabled person entitled to pension and whose sole source of income is war pension or charities—including any kind of charity.

In the light of these matters, in the light of the very large numbers who are in employment, in the light of the very substantial numbers receiving unemployability supplement, special hardship allowances, constant attendance allowances, treatment allowances, plus allowances for their wives and children, let us consider the question of the basic pension. I hope the facts I have given will help to clear up what is, I think, an evident misapprehension in the public mind on this subject. Too many people imagine that the figure of 45s., which is quoted, is the sole income for a war disabled pensioner. The misconception probably arises from this phrase "100 per cent, disabled." There are, as I said, 52,250 of these, but they are not all unemployed. The phrase "100 per cent.," as it were, is almost a term of art. It does not mean what the uninstructed member of the public may imagine it means—a person confined to an invalid chair, unable to do work of any kind. It means simply that he is disabled to an extent sufficient to enable him to qualify for maximum pension.

The figure of 45s. which has been referred to is, of course, the figure for a private soldier. The hon. Member for Lonsdale has already given interesting figures on that point, which I have no desire to controvert. I merely wish to point out that these are figures for private soldiers and that the figures for persons in the other ranks up to warrant officer rise up to 61s. 8d., and over that level the figures for officers are considerably larger. The basic rate of pension in respect of the second world war was fixed by Mr. Chamberlain's Government in 1939 at 32s. 6d. for the private soldier. It has been raised in successive stages by the Coalition Government to 40s., which was the rate for the first world war. This Government raised the rate to 45s. in February, 1946, and it is now the same rate as that provided for civilians under the national injuries scheme. The Government wants to assimilate as closely as it can the national injuries scheme with the war pensions disablement provisions. As the House knows, we are trying in various ways to bring these together by supplying limbs and appliances, the assessment of disability, and the like.

I do not deny for one moment—in fact I assert as strongly as the hon. Member for Lonsdale—that this payment of the basic pension is compensation for disablement; for hardship and misfortune and the other eventualities following disablement, there are other allowances. I agree that we need not talk much about the cost of living or hardship when we are dealing with basic pension rates. That pension is a compensation for the injury done. The need of the unfortunate pensioner—the man suffering hardship—is met by our supplementary allowances. If there are supplementary schemes for industry in addition to the basic national industrial injuries scheme, of course disabled persons working in any industry which has a supplementary scheme will get the benefits of the supplementary scheme as well, without any question of changing the rate of pension received from the Ministry of Pensions. But the Government feel they cannot make additional payments to those who are fully employed.

We have, therefore, reviewed the special supplements which we are making to meet the cases of hardship in the homes of the pensioners, to meet cases of hardship when the pensioners are receiving treatment, and so on. The Government cannot agree to change the basic rate because there are supplementary schemes existing outside in industry. However, we have looked again at the special supplements which are payable in the light of the circumstances at the present time and the admitted fact that some prices have risen. The Government have decided that the unemployability supplement, which is now 20s. a week, shall be raised to 30s. a week. These rates of unemployability supplement, I should point out to the House, apply to all ranks of pensioners.

So in future the helpless pensioner, for whom we all feel the deepest sympathy, will receive 30s. instead of 20s. supplement. We have decided to improve the position of the other-rank pensioner receiving treatment allowances who is not eligible for sickness benefit under the National Insurance Scheme, by giving him an additional allowance of 20s. a week. These allowances can be paid only to the pensioner in hospital who has dependants. This applies only to the other-rank pensioner, but I should be prepared to look into any special cases of hardship of superior ranks if they are raised. These improvements will be introduced with effect from 18th August. My whole case is that the Government have tried in every possible way to meet the needs of the pensioners, and have now rounded off this by improving the supplements as I have just had the pleasure of announcing to the House.

9.42 p.m.

I think every Member of the House who has this matter at heart will be deeply disap- pointed at the reply of the Minister of Pensions. Standing here to speak on behalf of the Service pensioner, it seems to me it is as if a cold douche had been thrown over one, and one feels that it is utterly useless to continue the Debate, if the Government have already made up their minds not to give anything in the way of an increase in the basic rate. The speech of my hon. Friend the Member for Lonsdale (Sir I. Fraser), I should have thought, would have moved any Government to consider this matter, not as something already decided, but as a problem to which they would like to give careful consideration, in the light of what my hon. Friend said, and of the representations by other Members in the course of the Debate. No one could have heard my hon. Friend's speech today without feeling the greatest admiration not only for him personally, but for the work he does for the British Legion. It is difficult to follow him, but there are certain points he did not mention, and certain points the Minister did mention, to which I should like to refer.

The Minister started, as his predecessor always did, and as he did when I had the privilege of addressing the House in a Debate at my instance on the Motion for the Adjournment on 18th December, 1947, by preening himself on all the Government have done since they came into office.

No, I will withdraw that. The right hon. Gentleman did not do that, but he preened his Ministry, if that is a more accurate way of putting it, on all that had been done since this Government came into office. That is no answer to the question of whether or not the basic rate should be raised. It may be granted—my hon. Friend the Member for Lonsdale granted it, and I grant it—that this Government have done extremely well in regard to pensioners who have suffered the highest degree of disability. There is no disagreement on that issue. Though I speak from this side and the Minister from that side of the House, this is not a party political issue at all. The question of whether the man injured in the Services deserves a higher rate of pension or not, cannot possibly be considered as something which has any flavour of a political bias of any political party. It is purely and simply a question of equity. We think—at least, speaking entirely for myself, I think— that a case has been made out, because of the cost of living rise, the fall in the value of money by 60 per cent, and the other reasons given by my hon. Friend the Member for Lonsdale, for an increase in the basic rate.

We on this side are not so interested in the case which the Minister made about what has been done for the 50,000-odd 100 per cent, disability pensioners; we are much more concerned with whether or not a fair deal is being received by the 70,000 who are not 100 per cent, disability pensioners. If I might again refer to it, the Minister preened his Ministry on having granted various allowances. He went into the allowances that he had given at some length and in some detail. He said—he did not give the date but it was in February this year and in reply to a Question by my hon. Friend the Member for Tiverton (Mr. Amory)—that the hardship allowance had been granted to those men from the 1914–18 war who qualified for it and who had not previously been eligible for it in addition to those eligible from the last war, and he told us with some pride that out of 752,590 disabled ex-Service pensioners—well over three-quarters of a million—2,430 are in receipt of the hardship allowance. That is nothing to be very proud of.

Why? Should we not be proud that there are not more people suffering hardship?

It is not a question of not suffering hardship but the smallness of the amount being given in cash by the Ministry. If the Minister argues that he or the Chancellor of the Exchequer has already expended all that can be expended, and then takes pride in the fact that the Government have given these allowances to make up for the disabilities which have been incurred, he cannot possibly maintain that expending a hardship allowance of 20s. on 2,000-odd men is anything very great.

Another matter which I should like to bring to the Minister's notice is the question of employment. I was not very clear about the figure. He said that of the ex-Service disability pensioners, 80 per cent, were in employment at the moment. He also said that 8,800 are in receipt of unemployability allowances. What is the percentage of unemployed ex-Service pensioners who are not those in receipt of unemployability allowances? The Minister did not give that figure, and I should like the Parliamentary Secretary to give it to me when he winds up. There are 8,800 receiving the unemployability allowance and yet 80 per cent, are in employment. How is the difference made up? What percentage is it?

I was going to argue the case from the point of view of the difference in the cost of living and in the value of money, and I was also going to refer to the question of the National Insurance (Industrial Injuries) (Colliery Workers Supplementary Scheme) Order which we discussed two nights ago. My hon. Friend the Member for Lonsdale said that he did not propose to compare the ex-Service pensioner and the colliery worker. Well, I think it is right to compare them, and for the purpose of comparison I propose to use the position of the colliery worker and his increased disability pension. Before doing so, and before considering to what extent the risks they run are similar, I want to make it perfectly plain that no ex-Service pensioner bears any sort of grudge or has any feeling of jealousy towards the colliery worker because he has now had an increase in the payment he receives when injured in industry. There is no such feeling whatsoever; there is no competitive spirit about it.

The hon. and gallant Member will agree that in many cases they are the same people; that the colliery worker is the same person as the disabled ex-Service man?

I should have thought it very unlikely that a 50 per cent, disabled ex-Service man would be employed in a colliery. There may be some cases, of course, but not many. I was trying to make clear that I do not regard this as a question between one side of the House and another, or between one Service and another, or as a question of jealousy or emulation. The other night the hon. Member for Spennymoor (Mr. Murray) stood up for the National Union of Mine-workers—and quite right too. I am not a member of the National Union of Mine-workers; but I am an ex-Service man, and I feel perfectly entitled to stand up here and to speak for ex-Service men.

Before the war the ex-Service disability pensioner had not so close a relationship with the man who suffered injury in industry. Since the war that relationship has become a great deal closer, for the following reasons. First, in the war practically everybody in the country was mobilised and, to some degree, suffered a somewhat similar risk from enemy action or of being injured in industry. Another reason why injuries suffered on Service and those suffered in industry have become more similar is that at the beginning of February, 1946, as the Minister has already told us, the ex-Service pension was exactly related to the degree of benefit under the National Insurance (Industrial Injuries) Act, so that everybody is now on the same footing.

In that regard, my own personal view coincides, after due consideration, with that held by the hon. Member for Oxford (Mr. Hogg). I believe that the degree of injury—as the hon. Member indicated so eloquently the other night—in the loss of a leg, or the loss of a husband, is the same, whether it is suffered in industry, in a road accident, or on Service. If we get that into our heads—and I have now got it into mine—it clears the air very considerably when discussing the amount of the rate of compensation for any particular injury.

If it is right for the House of Commons and the Government to agree that a miner shall have another 20s. benefit for an industrial injury, and if we expect that in due course this will be followed by other industries putting forward their claims, then it is of the utmost importance for the Government to give proper consideration to, and to see that fair play and a fair deal is had by the soldiers, sailors and airmen who cannot argue through a union, and who cannot thus put forward a claim to the Government.

There are two instances in which there is no relationship between the industrial and the Service disability pension. One is that the Service disability pension is in no sense contributory. It is a pension awarded by the country for disability, hardship and incapacity that has been incurred on active service. The other difference has already been mentioned. It is that there is no opportunity for any bargaining on the part of the Service or ex-Service man. I suggest to the Government that if it is not too late, they should consider very seriously the question of raising the flat-rate for those who are disabled and cannot, whatever the Minister may say, fully take part in the increase in wages.

It is no good the Minister standing up and saying to me and to my hon. Friend the Member for Lonsdale that if a man is 50 per cent, disabled or more, he can enjoy the increase in wages in the same way as those who are not disabled. It is quite impossible, and it does not make sense to us. I speak as being 60 per cent, disabled, a very humble disability, but I am quite certain that if I were a manual worker, I could not enjoy fully the rise in wages, nor should I have the capacity to work in the same way as a fit man. The Government should seriously consider granting a flat-rate increase of £1, which would be very nearly a parallel to the increase it has been thought right to grant in the case of the mining industry.

9.58 p.m.

The hon. and gallant Member for Barnstaple (Brigadier Peto) hoped at the beginning of his speech that this matter would not be discussed on party lines, and yet inadvertently there was that tendency throughout his speech. I am convinced that my right hon. Friend was right to give the long list of concessions and allowances that have been granted in the last three years, because there is a general impression in the country that very little has been done for the ex-Service pensioner.

The debate on the question of the basic pension has been sought to be divided into two parts. First, I assume that those who are most severely disabled are content with the present position with the various supplementary allowances they can get. The main argument has been that the 700,000 who are partially disabled are now entitled to a considerable increase in the basic pension. It is difficult for me, a non-disabled person, to say and to assess how financial compensation for a disability can be measured. It is difficult for me to say whether, by getting 5s. or, say, £1 a week more, one is more able to enjoy all the good things of this life than if one did not have that pension. The hon. and gallant Member for Barnstaple said that the disabled person was not able to enjoy the increase in wages which had taken place over the past two years.

If he cannot fully enjoy that undoubted increase in wages in the past two or three years, the case on that ground for a further increase falls down.

As the hon. Member has referred to me, perhaps I may be allowed to say this. What I said was that in my opinion a man who is 50 per cent, disabled or worse is not able, by reason of his disablement, to compete on those terms and fully enjoy the increase in wages that has been taking place.

On that point, will the hon. and gallant Gentleman enlighten us as to how much will be required in order that such a man should fully enjoy his life?

That is a difficult point; if the hon. Member for Attercliffe (Mr. J. Hynd) had suffered disablement, probably he would not have put the question. At the same time, I would say that the increase in wages has been most noticeable in the higher class of trades, or the higher skilled industries, and that those are the sort of industries and trades in which a man who is disabled to the extent of 50 per cent, or worse, is more handicapped than he is in ordinary unskilled work.

If I may now resume my speech, I still think that my original point holds good. I fail to see how, merely by increasing his disability pension, a man will be in a much better position to enjoy life. We must look upon this question of disability from a much wider outlook. The case I am trying to make is that it is not just the financial compensation which makes all the difference between a disabled person enjoying or not enjoying life; there are many other considerations. I think the Government have been right to concentrate on the worst cases. By increasing the unemployability supplement to 30s.; by what, I hope, will be a more generous treatment of the special hardship allowance; by the constant attendance allowance and so on, I maintain that the really seriously disabled pensioner is now in a comparatively favourable position.

In my contact with partially disabled pensioners, I have not met with very much pressure to increase their basic pension; in fact, I think that the bulk of them who are in gainful employment would be loth to push that pressure to a point which, by bringing about inflation, might seriously inconvenience other members of the community.

The hon. Member will agree, of course, that these remarks do not apply only to ex-Service pensioners.

I will come to that later, if I may. I do not want to be sidetracked into a discussion on the mining position, which was thoroughly debated the other night. I cannot see its relevance to tonight's Debate.

The main task of the Ministry of Pensions is to enable the pensioner to fill a normal situation and to live as full a life as he can. The positive treatment and the constructive approach of my right hon. Friend, who went into this matter in some detail, seem to me more important than the financial rewards which have been discussed. Hospital treatment, with the very important feature of highly qualified staffs and surgeons—and I might mention Stoke Mandeville as perhaps the most outstanding example in the world— the hospitals of the Ministry—are playing a tremendous part in bringing pensioners back to a full life. Then there are schemes of rehabilitation and after care, with welfare officers and so on, which form an important part of the work of the Ministry.

Above all, I wish to stress this. I think the most significant thing in the past three years has been the change in the attitude of the Ministry towards these disabled persons. There has been a much more generous interpretation of the Royal Warrant, and the beauty of it is that, although the basic pension has not been increased, there are now thousands of people and dependants drawing pensions who, under previous dispensations, were not entitled to pensions. That should not be lost sight of. Wherever it can be given, the benefit of the doubt is given to the applicant for pension. He is safeguarded by appeals and special tribunals and by the High Courts. I could give examples from my correspondence which show the more sympathetic attitude of the Ministry. I was looking through my Ministry of Pensions file quite casually this morning and I was struck by the large number of cases brought forward and the large number of successful issues obtained.

I will give one case in order to show the change in attitude. It is of a lady with three children whose husband died on service in Italy. The first decision of the Ministry was that his death was neither due to nor hastened by war service and although they were very sympathetic about it, the Ministry regretted that no pension could be given. That was in February, 1946. I took up the case and on 15th October, 1946, was informed that this case had been carefully reconsidered under the terms of the announcement made by the Minister on 25th July. No grounds could be found for varying the previous decision, but the lady could appeal to the special arbitration tribunal against the decision of the Minister. The next letter I got, in December, said that although the case had been reviewed by the Minister no grounds had been found for varying the previous decision that her husband's death was unconnected with war service.

There was a special appeal to the arbitration tribunal to review the whole case, and the whole of the medical evidence has been reviewed. I am pleased to learn that as a result it has been found possible to accept the fact that the man's death was hastened by war service. Not only has that pension been given to the lady, but it does not affect her family allowances and it has been back-dated to the day after her husband's death. That was a considerable move forward on the part of the Ministry. I could go on with individual cases showing how now the emphasis is placed in favour of the applicant, whereas it seemed that in the past—

It was the decision of the independent tribunal in that case, not of the Minister.

This was a decision under the special arrangements set up by the Minister. It shows how the attitude has been changed, although I admit it was through perseverence on the part of myself. Naturally I did not want to bring that out, but there have been cases brought forward by the Ministry independently of hon. Members and they have reached satisfactory conclusions. We know that the previous Minister was most insistent on the individual approach. The present Minister takes that view and also does not ask "What reason can be given for not granting a pension?" but "Can a single reason be given why I should give a pension; if so I will give it."

What can we do now, in view of the statement the Minister has made, and which I do not personally challenge at this time, bearing in mind the national importance of combating inflation and keeping this scheme in relationship with other schemes of national insurance? There are three small points which could now be considered. Firstly, would the Minister, in conjunction with the Minister of National Insurance, have a look at the wife's allowance, which is now 10s. for a private's wife? Could he not bring that up to 16s. to bring it into line with the wife's allowance under all the other schemes? Secondly, will he have another look at the position when a disabled man is unfortunately unemployed? Since 5th July his Service pension is taken into account in assessing the amount he will receive in unemployment benefit. Many pensioners find that they are not now getting the full benefit of that scheme because of this reduction. These two Ministers could between them arrive at a more satisfactory solution in that respect.

Thirdly—and this belongs to the more distant future—would the Minister again have a look at the disparity which exists between the pensions of privates and pensions of senior officers? I support the view put forward by B.L.E.S.M.A. which has been challenged tonight. I cannot see why, when equal risk is shared, when equal disability is suffered, there should be unequal pensions as a result of it. I should be glad if the Minister would look at that matter.

The steps we have taken to get disabled people into employment and to make them more normal citizens have removed from our streets some of the sights which were familiar between the wars—the ex-Service men's bands, street artists, etc. We do not see so much of that now. I am convinced that in large measure, that is due to the more progressive outlook of the Ministry of Pensions.

10.12 p.m.

I am a great believer in debate and I should like to follow the hon. Member for Stockton-on-Tees (Mr. Chetwynd). When I hear someone say that money is no easement at all to wounded men and can do nothing to help them—

—my reply is let the hon. Member go and ask 752,590 men if a little extra money will not make their life more pleasant, and he will be astounded at the answer he gets. I was very disappointed by the Minister's speech. I do not think it was the right or proper speech to be made under these conditions. The Minister recited a large number of statistics and a large number of benefits which were to be given to men under certain conditions, but the number of men who get these are comparatively few.

It is easy to cite the exceptional cases and to give them as an example of how all injured men are treated. My figures, and so far they have corresponded with those of the hon. Gentleman, show that the man who gets the highest allowances in every way is a totally disabled totally unemployed man with a wife and two children, who has to have a personal attendant. His allowance comes to £6 16s. per week. But out of the enormous number of cases there are only 97 of those. The same argument can be made in respect of 30,000 or 40,000 pensioners of a particular class. The Minister concentrates upon those. He does not deal with the bulk of the men.

In the earlier part of this evening we discussed the possibilities of extra pay for men in the Services, hale, hearty strong men. We are now speaking about giving a little more assistance to men who were once hale, strong and hearty and who will never be so again, men with all sorts of disablement from 100 per cent. down to an official 20 per cent. How do we arrive at 20 per cent, or 50 per cent, or 100 per cent, disablement? It is a medical assessment. It is not an assessment to say what would be paid to them if they went out into the economic field. That would be a very different assessment indeed.

Of the vast number of men quoted, half are veterans who are survivors of the 1914–18 war. They are now getting much older. Their value in the commercial and industrial world cannot be what it was. The figures and evidence given by my hon. Friend the Member for Lonsdale (Sir I. Fraser) show that between the wars these men were very heavily employed. Some of them were employed under the regulation, or rule, which said that three per cent, of certain establishments must be disabled ex-Service men or partially disabled. But a large number found employment owing to the generosity of private employers, who not only took on disabled ex-Service men, but made jobs for them. But the economic rule must come into force, which means that some time staffs must be reduced, and these men will have to go.

I was wounded in 1916, and I thought I was completely cured. I commuted for a lump sum which then looked attractive to me and I knew what I could do with it. Now, after 32 years those wounds are beginning to assert themselves. I fully realise that many of these men who have gone on for years thinking they had only a minor injury and who are now approaching 60 years of age, are in a different position today. I would refer back to the routine procedure. A Select Committee reported in 1919 that no wounded ex-Service man should be worse off than he would have been if he had not been wounded. As a result there was an award of £2 as a basic. Naturally only the 100 per cent, injured got the £2. That amount seemed to wander about until in 1945, operable in 1946, it was up to 45s. That is not very much—5s. extra for all the extra costs and conditions of life. Everyone knows that the cost of food and other essential things, such as clothes and housing has gone up enormously in those years, but the extra degree of pension has gone up only 5s.

I always understood that in 1919 that sum was fixed at 40s. because 36s. was the lowest rate of pay recognised for an agricultural worker, and the 4s. extra was a slight consolation for the loss of amenities. Why not follow the same procedure now and double the basic rate? That is what the country would welcome. An agricultural labourer receives £4 10s. and the basic pension should also be £4 10s. I would ask the Minister to consider the final effect of this. It would be one of the very few Government financial operations which would be reducing all the time over the years. It would become less and less, until eventually in the course of time all the men died, and it would work itself off altogether. I do not believe that the people of this country would disagree with it if they really understood the position and heard the full story.

I do not think the Minister understands. I do not wish to be rude, but he seemed very pleased with his figures. He also referred to the kindness and generosity of the Government. That was the kindness and generosity of his predecessor, as everybody knows. I hope that eventually he will achieve the same position as his predecessor, who was held in high regard in the House. But he has not done that yet, and he cannot live on the reputation of his predecessor or merely give long rows of statistics.

I have had brought to my notice in my constituency the case of a very decent woman who has a husband who is 30 or 40 per cent, disabled and receives 24s. He has two children. The wife said to me, "How can I induce these boys to go in the Army, when their father went into the Army when he was asked; he volunteered, and he fought on the field of battle and got wounded, and for the rest of his life he can never lead the full life of an ordinary man?" That man can never be as good at his job as he would have been if he had been normal. He can never enjoy any of the pleasures of life as he would have done—and he gets 24s. a week. Conditions ought to be better than that.

If the Minister really worked up a case, put it to the Government, and asked for the approval of the country, he would find that every one would willingly increase the basic payment. I ask hon. Members to consider the increases which have been made in other spheres since 1919. Members of Parliament, voting themselves, acclaimed from crowded benches, an increase in their salaries of 150 per cent. Agricultural labourers have had their wages increased by 220 per cent. The wounded ex-Service man has had his pension increased by 8½ per cent. That is not fair or reasonable. I ask the Minister not to come here with preconceived ideas, but to listen to the Debate and to read the speech of the hon. Mem- ber for Lonsdale. If that does not stir his heart, nothing will.

10.22 p.m.

It still appears that there is confusion on the Benches opposite between pensions and allowances given to people who cannot work at all and the disability pension which, as has been said several times and as was emphasised by the hon. Member for Lonsdale (Sir I. Fraser), has nothing to do with the man's capacity to earn a living. It is not fair to talk in terms of agricultural labourers, even though sometimes hon. Members opposite cannot get out of their heads the notion that an ex-Service man is some kind of faithful retainer on about that sort of level. It is not fair to talk about pensions in terms of the wages of agricultural labourers unless one mentions the maximum figure which it is possible that those who cannot earn at all are able to get. It has been said, and perhaps it can be said again, that the married ex-private who has two children and who is totally disabled can get as much as £7 a week. I do not defend that figure. Hon. Members opposite need not think that there is any lack of pressure on these Benches to do even more for the disabled ex-Service man than has already been done.

However, it is a curious thing that wherever this Government do well, hon. Members opposite say, "This is a matter which is above party; it is not a party issue at all." That is what they say when the Government have done well, but it is particularly ironic that tonight we are discussing the one item which cannot be discussed as an isolated non-party matter. The 40 or so improvements of which the Minister has spoken which the Government have carried out in their short term of office—

It is not a short term. The Minister related a number of improvements that were carried out by the Coalition Government.

I would remind the hon. and gallant Gentleman that one of the improvements carried out by this Government was the granting of pensions to the widows of men of the Sudan campaign. It was there, I believe, that the right hon. Gentleman the Member for Woodford (Mr. Churchill) won his first medal. Those people had to wait until the Labour Government came into power before they could be found, identified and given a pension. The point I was making was that this list of improvements could have been carried out on the basis of common decency and justice, by any Government at any time in the the last quarter of a century. Further, it ought to have been carried out.

The point brought up tonight cannot be dealt with in isolation. It is fair to say that it must be regarded as a matter of Government policy in relation to Government policy on all other compensation and insurance schemes, and the wages policy as a whole. Yet hon. Members opposite have waited until now to declare that they would like a full-dress Debate on a matter which they still hoped would be above party.

I have claimed that this list of improvements reflects some credit on the Ministers of Pensions in the Labour Government. I think I ought to say that this Government would have been quite unable to collect the necessary information to carry out all these improvements if it had not been for the good work throughout all these years of the British Legion, and I think it is appropriate to say a word of appreciation of the work of Mr. Webb, the pensions and employment officer of the British Legion, who has devoted his life since the first world war to this self-sacrificing task. If any of us go to our death beds having done so little harm and so much good, we shall rest content. His work, of course, depends also on that of hundreds of unnamed secretaries of the British Legion throughout the country who have devoted themselves to trying to get some improvements for their comrades who were so badly treated when they come back from the last war.

Some hon. Members opposite have suggested that this matter of the basic pension goes back a long time, and that, therefore, we are entitled to look into the past records of Debates in this House. We should remember that, four years after the first war—and it was not a short Debate late at night, but on an Amendment to the Address, put down by a Labour Member whose wife was the first Parliamentary Secretary to the Ministry of Pensions in this Government—there was a demand for a Select Committee to inquire into these accumulated injustices and, in particular, the almost inhuman attitude of the Minister of Pensions of those days. It was supported in the Division Lobby by people like the present Chief Whip, the present Prime Minister and a whole series of Members, including Mr. George Buchanan, the present Postmaster-General, and, to add tone, Sir John Simon as he then was. Familiar names of hon. Members of the party opposite appeared in the lists in the opposite Lobby.

Unfortunately, a former distinguished Member of this House and of the British Legion said with some indignation that he thought it was all wrong that the ex-Service man should be brought into party politics, and he asked since when had the Labour Party been so solicitous for the welfare of the ex-Service man, and that they ought not to interfere with questions that did not affect them. That was the attitude then. The Labour Party was associated in those times with the British Legion, and has at last been able to carry out some of its demands which were comparatively small, such as the case of the Sudan widows, which could have been investigated and dealt with long ago. Some other demands involved matters of principle, and they were rejected quite callously by the Minister of Pensions of those days. The question whether an ex-Service man had a right to expect to marry and raise a family if he came out of the Army disabled was dismissed by- the Minister of Pensions in these terms:

We all regret that complete rehabilitation is not possible in these cases. Nothing can possibly compensate for disability. Nothing in terms of money can compensate for what these men have suffered, and I am speaking not only of the physically disabled, because no man comes out of a war unscathed, and the circumstances of the person who is rehabilitated, whether it be in professional or family life or in taking up a career, are different in every case. Every man has to face his own problems personally. He must find his own way back to the life which he left years before. He may be a young man coming back, still an adolescent in some ways, but with a maturity he ought never to have been allowed to attain. He may be a man of middle age Coming back to a job and a family which no longer knows him and in which for a long time he may feel himself unwelcome.

How much more is that the case for the disabled man. He has many more of these "dark hours unseen" when he sometimes wonders if St would not have been better never to have come back at all. We cannot talk about rewarding or paying off such people, in terms of money, for what they suffered. But we are entitled to say this: our fundamental object is to get them back into a system they can live in. It is fair to say to these disabled pensioners, "We ask you to look at this not as an isolated problem but as part of this Government's struggle to give you, not designated employment so that you can make articles to be sold from door to door, depending on charity, on the plea, 'Buy this because it is made by disabled ex-Service men' but to bring you back into a society which wants you for the contribution you can make, and not to salve its conscience." It is fair to say that this is a matter of Government policy, and that the Government's policy with regard to wages, to compensation and insurance must be considered in relation to this—that on balance it is better that the Government should succeed in their general economic programme, than that it should be broken by evasion on one or two points of this kind.

That is the line I agree the Government are entitled to take tonight. I am sorry to have to say it, because we on these Benches regret it as much as any. Any eloquence and skill in the Minister's reply arise from the fact that he has already had practice in allowing his head to dictate to his heart by repelling the arguments put to him by members of this party. He will no doubt give assurances, but the assurances required here are not on party grounds. We must continue the policy we have pursued in favour of supporting the restoration of the country's economy so that it can raise the standard of life of the ex-Service men as well as that of the rest of the community.

10.34 P.m.

We are certainly grateful to the hon. Member for Lonsdale (Sir I. Fraser) for leading this Debate to the consideration of the question of disablement pensions. His work for and devotion to the cause of ex-Service men are sufficiently known to all and require no commendation from me. I cannot pretend to rival him in experience, but since, during his remarks, he referred to the organisation, B.L.E.S.M.A., of which I happen to be a member and an honorary officer, I would like to say a word or two about their approach to this problem of the basic pension.

May I say to the hon. Member for Stroud (Mr. Parkin) that I think, in spite of what he said, it is generally agreed that the present 45s. is inadequate and that the 5s. rise which has taken place in the last 20 years does not properly relate to the general rise in salaries and wages and to the cost of living. The ex-Service men's organisations are profoundly grateful for the improvements which have taken place over recent years, but the various supplementary allowances touch only a small percentage of the people affected by the basic rate. The concession announced tonight, the 30s. unemployability allowance, affects some 8,000 people. We are considering more than 750,000 pensioners as a whole. I myself do not think that this question of a basic pension is a party matter. All of us would willingly double the rate today if we could. There is no question or dispute between us. We all want to help these men.

From the point of view of my own association, may I say that we have tried to look at this question from a national, as well as from a purely sectional, point of view? It appears to us that, at a time when the Chancellor of the Exchequer, with I think general support in the country, is wrestling with the problem of inflation, at a time when appeals are being made to all and sundry to reduce prices and not to press wage claims, it is not opportune to press for the doub- ling of the basic rate, involving the country, to quote a general figure, in a cost of some £30 millions. It would naturally be acceptable if it were possible. The suggestion which we put forward was that, as an intermediate step, or if I may put it in this way, as an alternative or second best to the proposal of my hon. Friend the Member for Lonsdale, the basic rate of pension for all other ranks should be raised to that of a W.O.I, which would mean a rise from 45s. a week to 61s. 8d. a week. This would cost just about one-third of the larger figure, or about £10 millions.

Of course, the Government, or Members of this House, may well ask: "If you propose that all other ranks should be raised to the level of a W.O.1, is it also proposed that officers should be raised?" If the Government would raise all ranks to the rate of a major-general, or a rear-admiral, or an air vice-marshal, we would have no objection; but, of course, it is obviously wrong, or a breach of faith, once a disability pension has been awarded that it should subsequently be reduced. Our proposal is merely put forward as, shall I say, an economical way of doing something which we all want to do, and possibly as a first step towards a general up-scaling and general levelling of the basic rate of pension. I recognise that it raises the controversial question of equal pension for equal disablement, which has been touched upon by the hon. Member for Lonsdale. My own opinion upon this matter, though I do not know that it is shared by anyone else, is that a disability pension should be based solely on the degree of disability, and that the question of rank should not come into it.

I have made inquiries and have been in contact with people who have lost limbs, and certainly, as regards such loss, there is no question that, on the whole, it is a greater loss for a private, who is probably a manual worker, to suffer than it is for an officer, who probably earns his living as a mental worker. To my mind, a disability pension is in a different category from a pension received on retirement, or a gratuity for services rendered. I recognise that these rewards for service should certainly be awarded on the basis of the man who has taken the greatest measure of responsibility receiving the highest reward on his retirement, or when he leaves the Service. I think that the disability pensions come in a slightly different category.

There are three other small matters I would like to raise, and may I refer, first, to the question of assessment for disability? Those who are associated with me have always held that there should be a 100 per cent, plus assessment for disability. One hundred per cent, is given for someone who has lost two limbs of one kind or another, but although only a small percentage of them exist, some people have lost more than two limbs—a foot, an arm, or something else, perhaps. We hold that it is illogical, and almost indefensible that, when the Minister lays down with meticulous care scales for those with amputations, the position is that once one gets above 100 per cent., the Ministry rely on various supplementary allowances from outside to make up the difference.

The only point which I make here is that people below 100 per cent, can draw the supplementary allowances, such as unemployability grant, or constant attendance allowance, and we think that those who are over 100 per cent, should get some consideration. The constant attendance allowance is scaled, starting at five shillings, and then going to 10, and then to 20, where it stops, before jumping to 40. One feels that if it is possible to scale the constant attendance allowance from five to 20, there ought to be a step between 20 and 40. The Ministry may well answer that, if they did that, a number of people might go from 20 to 30 shillings, because they take a generous view. It is not for me to say how many would be affected if an intermediary step were put in, but we claim that it would make a more logical and flexible scheme.

My last words are on this question of the supplementary allowances. It has already been touched upon by some of my hon. Friends. The position of the miners in any supplementary scheme which comes in has been mentioned, but I cannot say that any ex-Service man can accept the principle that, where the State provides about five-sixths of the benefits, another category of men should have greater consideration than the ex-Service man.

10.44 p.m.

I will not detain the House long, but I want to make one comment on the very interesting statement which the Minister made. The increases in various forms of assistance given are very remarkable, but the most important feature of those increases in regard to pensions is, I believe, not so much the increases announced about attendance allowance, and so on, as the admissibility of increased numbers of disabled men to pension. This has been greatly extended in the period between the last war and the present time.

May I give an instance of how great that has been. At the end of 1941, at a time when I was on the medical staff of the Eastern Command, practically speaking no cases of tuberculosis were being accepted as attributable to service. Very few pensions were being given. Tonight I inquired from the Minister, when I intervened, whether he could give the number of cases of tuberculosis which had been accepted for pension at the present time, but he was not able to do so. Fortunately, I have been able to get the figures and I find that the number is 47,679. That has been brought about by the extensions of the Royal Warrant and the fact that benefit of the doubt has been given to the man on appeal. In fact there has been a more generous interpretation on the question of admissibility for pension purposes. And, as now all people are covered by the National Health Service scheme, there is complete cover for all kinds of disability which may arise.

In the Services it is now only disabilities such as cancer, diabetes, blood diseases and one or two others which are not, under certain conditions, admitted as giving a right of pension. But if the Minister would consider this matter and take the necessary steps, it should be possible to admit every kind of disability from which a man in the Services suffers as giving the right to pension from the Services. This change would very much simplify medical administration in the Services and also would very much simplify medical administration in the pensions Department. It would also give cover to everyone in the Services in regard to everything which might happen to him, including cancer, diabetes, blood diseases, the results of tuberculosis or malaria con- tracted on service—and it would add very little indeed to the total liability. In fact, I venture to think that there would be economies in the medical administration in the Services and in the pensions Department as well, which would balance the extra expenditure. It would get rid of the detailed considerations of "attributable" or "non-attributable."

The House will recall the speech of my hon. Friend the member for Stockton-on-Tees (Mr. Chetwynd), who gave an example of his perseverance in getting a certain case allowed as "attributable." His correspondence extended over a long period, something like 18 months. The case was examined elaborately on two occasions at least and rejected, and hon. Members will know that the preparation of the précis of the documents submitted to the pensions appeal tribunals causes an immense amount of work and research and the expenditure of a great deal of time, a large part of which could be done away with if the simple suggestion I am putting forward were accepted.

My suggestion is that disabilities of any kind contracted while in the Services should be accepted as giving the right to the proper compensation without any question arising of their attributability or aggravation according to the formulae of the past. The time has come to sweep those formulae out of existence and give to men in the Services the right to their pension without any question of attributability. This would give the right to pension to a man in the Services for any disability arising from any cause during his life in the Service.

10.50 p.m.

My hon. Friends on this side of the House have expressed disappointment with the Minister's speech and I think he can hardly object, for he turned down absolutely every suggestion which my hon. Friend the Member for Lonsdale (Sir I. Fraser) made very movingly and very sincerely when he spoke on 9th July and tonight. I may say that the Minister did it with very little sympathy. I should like to recapitulate that case and induce the Minister to think again on the subject. A great many speeches on the other side of the House have missed the point of the case we are making because I cannot believe that hon. Members are unsympathetic to it.

I think it is best to refresh our minds as to why pensions were given and I do not think that I can do better than quote the words used by my hon. Friend the Member for Lonsdale on 9th July. The Royal Warrant, he said, was

Let us compare some of the other rises which have taken place in things which the average pensioner possibly wants more than other people because of his disability. Take the case of 'bus and tube fares in London. Between 1938 and 1948 they have gone up by 42½ per cent. How often is it that a disabled man wants to take 'bus and tube when a really fit chap would walk? Yet while these fares have gone up 42½ per cent., the pensioner's basis rate has been increased by only 12½ per cent. Take another case—beer. It may perhaps be understandable that a man suffering from a disability should have a glass or two more than another man.

Yes, or even one. Beer has gone up by 100 per cent, and his basic rate has gone up by 12½ per cent. Lastly, let us take the case of cigarettes and tobacco. Who shall say that an ex-Service man may not more often want a cigarette than the rest? They have gone up 250 per cent, and the basic rate of pension has only gone up by 12½ per cent. These are instances which I think should carry great weight with the Minister in considering this question of the basic rate.

I want to refer to the additional pensions with which the Minister made great play in his speech. None of us wants to diminish the value of these, but according to the Minister's own figures, they really do apply to a very small proportion of disabled ex-Service men. According to the figures he gave, there are 752,590 pensioners. Taking the increase which the Minister announced today and which is very welcome, it will affect only about 8,800 of them. We welcome it very much, but our point tonight is that it will not affect many people. Take the constant attendance allowance. Only 5,000 out of this three-quarter of a million will draw it, while only about 2,500 will draw the hardship allowance. Very welcome as these are, they do not approach the case we are trying to make. The Minister has not met our case at all, and when hon. Members opposite come to think about it, they will realise that he has not met it.

I do not wish to make any party points about this, but we cannot divorce disability pensions and supplementary schemes under the National Insurance (Industrial Injuries) Act. A discussion on this was ruled out of Order by Mr. Speaker the other evening, but we can discuss it tonight. It will be recalled that Parliament enacted the National Insurance (Industrial Injuries) Act, under which supplementary schemes can be made if they are deemed expedient and an approved by the Minister of National Insurance. Any group of employers or employees can come together and submit a scheme.

No such right to submit a scheme is given to ex-Service men or any representatives of ex-Service men. Therefore, both Parliament and the Government have a moral responsibility to disabled ex-Service men. What has Parliament do*"1 with the first of the schemes introduced under the National Insurance (Industrial Injuries) Act? We have just approved a scheme under which five-sixths of the extra of compensation is to be borne by the public. It is obvious, from the fact that that scheme was approved, that the Government and Parliament were satisfied that the compensation was not sufficient, otherwise it would not have been thought expedient to adopt that scheme at a time when the Government are urging that wages and costs should be kept down. I cannot imagine that on either side of the House there is a wish to deny to the ex-Service men, for whom we in Parliament have a special responsibility, what is deemed to be expedient for another class of the community in industrial occupation. Could there really be any greater risk for a man than to leave these shores to bomb Germany or to participate in an operation like D-day? To talk of degrees of risk is completely irrelevant.

What we suggest will cost something. I have some figures here which illustrate that. If a 15s. rise were given to grant 60s. per week, it would cost £12½ million a year. That, of course, takes into consideration the fact that the basic rate will not go up to that figure in every case. It will only be proportionate to the degree of disablement pension that a man draws. Today in Parliament we discuss big figures. We discuss great losses, which are sometimes much greater than the figure I have mentioned.

I do not want to detain the House longer. I have tried to put this case in such a way as to make the Minister and the House think again on this matter. He has not met our point and the speeches from hon. Members opposite have not met the point that we are putting forward. The Minister has not been very long in office and we wish him success. We know that any success will be reflected in the lot of the ex-Service man. I beg him to try to persuade his colleagues that there is a case here where justice to ex-Service men is involved, particularly in view of the advent of this first scheme of supplementary pensions in another industry, where so large a proportion of the cost is borne by the public. I ask the Minister to consider what has been said and not to leave the matter where he left it in the speech he made tonight.

11.2 p.m.

I said earlier that my hon. Friend the Parliamentary Secretary would reply; but his voice has rather let him down, so I hope I may have the leave of the House to speak again.

I make no complaint of the speech to which we have just listened. It was—though I do not agree with all the arguments—a reasonable and courteous speech, as were the speeches of the hon. Member for Lonsdale (Sir I. Fraser) and the hon. Member for Rutland and Stamford (Lord Willoughby de Eresby). I believe that in my earlier speech this evening I gave the most careful reasons why the Government feel that we must keep the basic rate for the disabled war pensioner on the same level as the national rate for other disabled persons. We must give the new National Insurance (Industrial Injuries) scheme a fair run and a fair trial. We think it is reasonable to keep the rate for the disabled war pensioners at the same level and to try gradually to assimilate the practice of the Ministry of Pensions, the Ministry of National Insurance and the Ministry of Health for the benefit of all classes in the community who are suffering from these disablements.

I want to assure the House, and particularly the hon. Member for Westbury (Mr. Grimston), that the Government have carefully considered the case. I said, when I spoke in the Adjournment Debate some weeks ago, that we would carefully consider what was put forward. The announcement which I made tonight was the considered opinion of the Government. I do not wish to leave the House in any misunderstanding about that.

May I take this opportunity of thanking the Minister for the concession he has made to a particular group of severely disabled men, which will be particularly appreciated, but may I put this question to him? If the Government make so much of the point that it wants the soldiers', sailors' and airmen's scheme put on the same lines as the industrial scheme, how can the Minister reconcile that with not taking into account such an important and new situation as the supplementary schemes to the industrial scheme?

Because those who work in these industries and contribute to a supplementary scheme are entitled to have all the benefits for which they contribute and because the vast majority of war pensioners are fortunately and happily in work and earning wages at the same rate as the rest of the community. Any disabled man has the right to benefit from a supplementary scheme as applied to his industry, at the same time as the more fortunate classes. I yield to no one in my sympathy for these cases. We will do our best, and we have done our best in the additional ways I have announced tonight to make up both for the special misfortune and hard- ship which they encounter and the consequences of recent rises in prices. I must say that in honesty and fairness to the House, and in order that there may be no misunderstanding and that I may not be accused later on of having given any kind of equivocal answer to that question.

I do not wish to detain the House long at this late hour. There were certain points which I might answer by saying that considerable play has been made with the total numbers of war pensioners compared with the relatively small numbers, fortunately, who are eligible for unemployment supplementation or hardship supplementation, and the like. Those who make such great play with this contrast between the total number and the small number who suffer these peculiar hardships, fail to take into account the considerable increases in dependants' benefits and the like, which all these pensioners enjoy and many of which I recited to the House tonight so that they should get on to the record. They must remember also the sort of figures which the hon. Member for Islington (Dr. Haden Guest) mentioned—the large increases due to the widened eligibility provisions which now prevail. I was glad he was able to give the House those figures.

I think the Debate has been distinguished by valuable and well-informed speeches from this side of the House, and if I do not refer in detail to what some of my hon. Friends said, I am sure they will forgive me. I did appreciate the contributions which they made, and which showed that on this side, there is not merely concern for the welfare of disabled men, but also expert knowledge of the matter. I wish that one of the speeches from the opposite side had been as reasonable as others which I have mentioned as being courteous and reasonable. The hon. and gallant Member for Chertsey (Captain Marsden) did say, while making a comparison between myself and my predecessor, that I came to this matter with preconceived ideas. I do. Just like my right hon. Friend the Postmaster-General, just like Mr. Buchanan, I too have lived in poor and humble circumstances, and have suffered the difficulties of poverty and hardship. I know what these things mean, and those preconceived ideas I do bring to these cases. The hon. and gallant Member said that I brought out long rows of statistics. I did. I brought out facts and figures which show what has been done for the pensioners. They are not imaginary statistics collected for a special occasion. They are presented for the information, relief, and satisfaction of the public that we are doing far more than has been done before. I did not hear a single hon. Member on the other side say "Let us go back to the beneficient arrangements made by the Governments which held office between the wars." I have said that because of a particular speech which did produce in me a reaction which may not surprise the hon. and gallant Gentleman.

I should refer also to some of the points raised by the noble Lord the Member for Rutland and Stamford and by the hon. Member for Stockton-on-Tees (Mr. Chetwynd). The noble Lord raised points about the possibility of having a higher disability assessment than what we now call 100 per cent., and also about the constant attendance allowance. As he knows, we have already discussed this to some extent with the association to which he belongs, and we will further consider what it has said, and what he has said tonight, and undertake that an answer will be sent to the association on this point before very long.

I do not want to go into details, although I have some of the answers ready, of the matters my hon. Friend the Member for Stockton-on-Tees brought forward. On all those matters, having said we want the social services assimilated— the National Injuries insurance, the National Health Service, and unemployment and other insurances—to make wide social provision for all kinds of disability and misfortune, I will add that I shall consult with the Minister of National Insurance not only on the three points my hon Friend raised, but also on the general question of trying to eliminate any anomalies that may exist between various schemes.

At the same time, the House will appreciate that it is sometimes difficult to do that, because when we correct one anomaly we often create another. For example, there are many cases in which a disabled war pensioner with a family is still better off than a miner, even with the addition of the new supplementary scheme. These anomalies do exist, as my hon. Friend said, in the differing rates for compensation for the loss of the same kind of limb that are paid to the various ranks in the Armed Forces. However, retrospective alteration involving reduction of incomes would not be a fair proposition. I undertake to study the matters raised.

Question put, and agreed to

Bill read the Third time, and passed.

Men's Utility Clothing (Prices)

11.12 p.m.

I beg to move,

But this increase is not an isolated one. It is part of a process that has been going on for some time. Let me take one example, that of a man's utility garment, a garment which costs £11, and which, a member of the trade informs me, before the war could have been bought for less than 70s. There is an increase of three times. In December, 1946, the price of this suit was £9. In January, 1947, it was £8 16s. I would be obliged if the Parliamentary Secretary would explain why it went down 4s. in two months. Since then it has been steadily mounting. In June, 1947, the price rose once again to £9. In May of this year it rose to £10 12s. and now it is proposed to raise it to £11 4s. 5d. In one and a half years this kind of men's utility suit has gone from £8 16s. 3d. to £11 4s. 5d., an increase of £2 8s. 2d., or 27 per cent.

It cannot be suggested, as was suggested in the last Debate, that wages have risen 27 per cent, since January, 1943. The Minister of Labour has announced recently that the cost-of-living index has gone up in one year, between July last year and July of this, by 10 per cent. Here we have an additional burden placed mainly on the shoulders of ordinary folk. I suggest it is impossible for the Minister to reconcile this with what the Prime Minister said in the earlier part of this year, that it was proposed to bring down prices and, at the same time, the workers were expected to refrain from asking for increases of wages. On the contrary, not only are prices not decreasing, they are actually increasing.

I should like to examine the question in greater detail. The main question I would pose is: Is this increase necessary? Where does the money go? In the type of suit I have mentioned, 209F, where the price to the buyer is £11 4s. 5d., this is how the money is divided. The manufacturer gets £6 18s. 8d., the wholesaler £1 9s. 8d., and the retailer £2 16s. 1d. Let us see what the manufacturer does for what he gets. He makes up the article. Here, in the first place, there is a difference in the manufacturer's costs between the mass produced article and that produced in the small workshop.

This is a very important question and I hope the Parliamentary Secretary will give it his attention. I have investigated this matter and find that the cost of production varies to this degree. In large factories employing over 1,000 workers the cost of this three-piece men's suit is just over £1. The cost of production of the same garment in a small workshop is 33s. But the price is based, not on the 20s., but on the 33s. The Minister allows the price to be based on the least efficient productivity. Hence the bigger firms are able to retain the additional 13s., which goes towards their profits and reserves.

Then there are overheads. I understand that the small firms on the average add 50 per cent, overheads to the manufacturing costs. But I know at least one large firm which adds 100 per cent, on production costs. Does the Board of Trade allow this? If it does, it seems to me someone is getting way with a very good arrangement. It means that where the cost of manufacturing is 20s., another 20s. is added for overheads and this, not on an expensive article, but on a utility garment. I believe such an allowance for overheads is impermissible and the Board of Trade ought to look into this before thinking of increasing the price to the ordinary consumer.

What happens, therefore, when these overheads are added to the manufacturer's costs? In turn, the profit of the wholesaler and the profits of the retailer go up, for their profits are based upon the manufacturer's prices. Let us now look at the wholesaler. Here we see one of those anomalies which we have come across in other industries. The same anomaly, we know, prevails in the fruit and vegetable industry. The wholesaler, in general, gets 17.65 per cent, of the manufacturer's costs. Do not ask me why it is 17.65. I do not know what clever civil servant or trade official worked it out. I asked the Minister the other day what quantity of these garments passes through the hands of wholesalers. The Minister said that until the Census of Distribution was finalised he could not give that information. I accept that answer. But we have to look to see what the wholesaler does for the value he is getting.

In a time of plentiful supply, before the war, for example, the wholesaler served as a useful medium for the manufacturer. He helped to dispose of goods, and had contacts which the manufacturer might not have had. But today that is not the case, and manufacturers now do their utmost not to supply wholesalers if they can supply direct to the retailer. That is common sense and good business. Therefore, in these cases the manufacturer retains the 17 per cent., which is permitted on his manufacturer's price by the Board of Trade.

Let me give one or two examples of well-known and well-established manufacturers whose primary trade is done through their own retail shops. Take Burtons, probably one of the biggest, if not the biggest, clothing concern in the country. As everyone knows, they have hundreds of shops in cities and towns throughout the country. They sell direct to their retail shops. No wholesaler intervenes. But Burton the manufacturer is permitted to get the 17 per cent, because every manufacturer is permitted to get that amount whether the wholesaler is an intermediary or not.

What is 17 per cent? On the particular suit to which I am referring, the 209F, 17 per cent, amounts to 29s. 8d. Hence that suit could be reduced at least by that figure and there would be no cause for an increase if this anomaly were removed. Why is it that the Minister allows these manufacturers to take the wholesaler's share when we know quite well these concerns are an open book in our country and that they are retaining that share. What kind of racket goes on here? What kind of advice is being taken by the Board of Trade? They cannot justify it, and, therefore, they cannot justify the increase in the price of suits to the man in the street. Is this the reason why firms like Burtons, and Prices, the Fifty-Shilling Tailors, have been able to make these very high profits which they have been making in the past year or two?

In 1945, Burtons made a profit of £192,000 nett. In 1946, that £192,000 had become £415,000 nett, and in 1947, £465,000 nett. Likewise, Price's profits, which in 1945 were £111,000, in 1947 had risen to £215,000. Of course, if the Board of Trade wants to be generous to these firms and to allow them to take profits to which they are not entitled, and margins to which they are not entitled, it is understandable that these firms can make these profits. But, they are making these profits, and, let it be clearly understood, they are making them at the expense of the man in the street who now pays £11 for a suit which, before the war, he got for 70s. The retailer, likewise, under the new order, is entitled to 33⅓ per cent., whereas, in the former order of last April it was 30 per cent. Why should the retailer have a higher percentage of actually higher prices? He gets the best of it both ways.

What are the reasons for the increase? There can be one of three reasons, or all three, and the first I would mention is the withdrawal of the subsidy; secondly, the increased cost of raw materials, particularly wool, and, perhaps, the new increase of wages which some clothing workers have received. I should be especially glad if the Parliamentary Secretary would say something about that last point. But I would claim that, irrespective of whether the Minister can give the exact reasons for the increase from his point of view, he cannot justify the increases for the reasons which I have given. The Board of Trade has taken no steps to try to get an efficient industry at the lowest possible price to the consumer.

Whatever the factors applying, as I understand the case, I believe that there is ample scope to increase costs of production without increasing costs to the consumer. Yesterday, the President of the Board of Trade made an announcement with regard to the lowering of coupon values, and many people will appreciate that. But it is significant that the President told us,

First, he could cut down the overheads in manufacture, and I challenge him to say whether sufficient attention is given to this matter. If he goes about and listens in the trade, he will hear of the, opportunities they have to put up prices. Secondly, he can base prices on the most efficient firms and not on the least efficient. Thirdly, he can eliminate the "hypothetical wholesaler." Where there is a legitimate wholesaler, that man or firm is entitled to a percentage, but in the cases I have mentioned there is no wholesaler in fact; and I could multiply those cases many times. Does the retailer get the additional margin to which he is not entitled? If so, the consumer pays. If the Minister gives attention to these points, he can reduce prices to the consumer, and this Order becomes unnecessary.

I do not think any hon. Member would disagree that it is desirable to keep down the cost of men's and boys' outer garments. As far as that is possible it has been the intention of the Board of Trade throughout to keep these prices within a strict control. I listened to what the hon. Member said about the sniggers in the trade particularly with regard to the overhead charges in the cost of production. I can assure him that whatever he has heard, it is not a fact that Millbank is populated by innocents who are led up the path by clever manufacturers.

All these cases are very carefully investigated and there are many Members who can get up and make the same kind of case against the Board of Trade for being, if anything, too rigid in their control of such, things. I feel that the hon. Member does not really understand how we operate these price controls at the Board of Trade, and it would be a good idea if he came along to see me during the Recess and sat in my office when I would endeavour to tell him what goes on. I think after what he heard he would agree that we are safeguarding the consumer.

The hon. Member mentioned the question of the 17.65 per cent, margin. He mentioned organisations by name, some of them reputable organisations, and said that they are distributing direct to retailers and yet having the 17.65 per cent, margin. The reason is that the wholesaler gets it because he provides a service which costs him money. If instead of employing a wholesaler the manufacturer provides that service, it still costs him the money and that is the simple reason for his receiving the margin.

I acknowledge that if the manufacturer takes the responsibility for distribution he has a higher expenditure and cost than the manufacturer not concerned with it. But the Minister cannot really say that the firms such as I mentioned, and I did not claim them to be other than reputable, could have the same expenses as a wholesaling firm merely in discharging its good to various retail shops.

It is not merely a question of discharging the goods but of organising distribution, a matter which involves far more than discharging.

It is not nonsense at all. The increase in price is due almost entirely to the removal of the subsidy on utility wool cloth. The removal was announced by my right hon. Friend the present Chancellor of the Duchy of Lancaster when he was Chancellor of the Exchequer in his Budget speech on 12th November last year as one of the steps taken to counter inflationary tendencies. Deliveries from cloth manufacturers were made without subsidy as only part of the subsidy was given after 29th February this year. There is still some cloth coming from manufacturers carrying subsidies but the amount is getting less, and in two or three months all utility wool cloth supplied to garment-makers will be entirely without subsidy. The complete removal of the subsidy has meant an increase varying from 1s. 5½d. to 4s. 5d. a yard, an average increase of 41 per cent.

These figures were bound to affect manufacturers' prices in utility suits, overcoats and so on. About one third of the cost of the garments is in the cloth from which they are made, and this was taken account of by my right hon. and learned Friend the Chancellor of the Exchequer in his speech on "Personal Incomes, Costs and Prices" on 12th February this year, when he said there would be exceptional cases where increases in prices in things such as these had already been authorised for some good reason, and must be made. Although unsubsidised wool cloth was coming through to the garment manufacturers in March it was only from 16th July that we authorised higher prices for the garments in this order.

In authorising this increase we tightened the existing price control, and this is where, I fear, the hon. Gentleman has gone wrong. He noted that the subsidy would probably be part of the reason for the price increase, and suggested that our price control was too slack. In fact, because we realised the effect of the impact of the removal of the subsidy upon the consumer when we allowed the price to be raised, we tightened the existing price control. The garment manufacturers are allowed a profit of 5 per cent, on their costs, and this is the important point—subject to ceiling prices separately calculated for each type of garment and for each type of cloth—and I can assure the hon. Member that the Board of Trade accountants who go into these ceiling prices are not entirely ignorant of the make-up trade. They have had a great deal of experience and the ceiling prices are very carefully calculated. The ceiling price for men's utility outerwear had been increased in April because of a wage increase in January, and the increase in the cost of utility wool cloth was due to the steady rise in the price of raw wool in August and September last year. These increases had not been offset by an increase in the rate of subsidy on the utility cloth.

Although there is this very strict price control of utility production we have never held that manufacturers should make no profit on utility garments or that utility production should be subsidised by non-utility. Our experience has been that a particular firm's profits will generally be reflected in all three branches, utility, non-utility and export, if they supply all three. There has been some criticism of the fact that the manufacturer's selling price to a retail customer has been increased by more than the selling price to a wholesaler. For a suit of the cloth mentioned by the hon. Member the prices are 14s. 11d. and 10s., respectively.

This is simply a question of the subsidy being removed in conformity with the Government's policy of countering inflation. This control is intended to resist the claim of a manufacturer on an article when the subsidy is removed from the raw material that he should be allowed to hon Friends did not rally to my support include in the price of a finished article an amount equal to the subsidy removed. It is right to watch very carefully that such an increase in price does not give to the manufacturer more than that to which he is entitled. We have seen to it that that is the case. The price control has been tightened, and I am certain that the hon. Member will find that is so. It is regrettable that clothing should cost so much more today than before the war. I readily grant that point, but it is part of the general rise in prices which has taken place.

I, personally, am satisfied that this order does not give to the manufacturers anything more than that to which they are entitled. I hope that the House will accept the Order.

Question put, and negatived.

Poisons (Sale)

11.40 p.m.

I beg to move,

"That an humble Address be presented to His Majesty, praying that the Rules, dated 23rd June, 1948, entitled the Poisons (Amendment) (No. 2) Rules, 1948 (S.I., 1948, No. 1379), a copy of which was presented on 24th June, be annulled."

Like the hon. Member for Mile End (Mr. Piratin), I very much regret having to keep the House at this late hour, but the House will recall that I was beginning to move this Prayer to annul the Statutory Instrument 1379 of 1948 entitled the Poisons (Amendment) (No. 2) Rules when the House was counted out on a point of Order raised by the hon. Member for South Wembley (Mr. Barton). I make no complaint on his employment of this time-honoured usage of the House, and I would—

I hope the hon. Member appreciates the fact that I have stayed tonight to listen to him, a compliment which neither his hon. Friends on Monday night nor tonight, with the exception of four hon. Members have paid him.

I am exceedingly complimented, but I would have been more so —and more convenienced—had he remained to listen to me on Monday night. I understand that the reason why my hon. Friends did not rally to my support was due to a technical defect, the word "Division" having been shouted in many of the corridors of the House instead of the word "Count," which led them to the mistaken belief that they had seven minutes for their attendance instead of two.

One knows that a Count today is rather unusual, but it was quite common once upon a time. The bell rings differently and I am told that the bell rang quite correctly on Monday night. It is one single long peal for a Count, but for a Division it rings three times in rapid succession. My bell automatic arrangements were quite correct. What the police did, has nothing to do with me.

I am very grateful to you, Mr. Speaker, for that explanation. It was the translation of the bell which was inaccurate. Translation is a very difficult art. I am very grateful to the Under-Secretary of State for the Home Department for being here, and I must express my regret that because of the postponement of this Prayer, he has lost two days of his Scottish holiday. For his comfort I would remind him of some lines of Omar Khayyam:

Let us take the case of an imaginary street accident. Somebody rushes into the chemist's. He tells his story and says he is sent by Dr. X, a well-known local practitioner, and that such-and-such a poison is needed immediately four or five blocks away. If he plays his part well enough, the chemist is convinced and hands over the poison, the customer vanishes, and the terms and the spirit of this order will have been amply and strictly fulfilled.

The fraud is only discovered when the signed prescription is not forthcoming 24 hours later. Dr. X is approached. He knows nothing about it. No street accident has occurred, and what has happened is that the purchaser has made himself liable to penalties for having contravened the provisions of this Order. Presumably, the chemist has taken the purchaser's name and address, though he is not obliged to do so under this order. The purchaser is at once approached by the police, who find that no one of that name lives at the address; or, if he does, that he was not, in fact, the purchaser who had merely borrowed the use of his name and his address. A deadly drug has found its way into illicit hands, and no one is in any way to blame except the Home Office or this House if it sees fit to pass this order.

It would appear that this aspect of the matter interested the Select Committee on Statutory Rules and Orders who called for a memorandum from the Home Office and reported the order to the House. I hold this memorandum in my hand, and I think it is one of the most remarkable documents ever issued by a Government Department. It begins by reciting the 10 years history which has led up to this order. Thereafter it goes on in para: 2, to say this:

I have tried to plot their courses, and I cannot make up my mind as to whether that of the Home Secretary or that of the Poisons Board is the more confused. I come to paragraph 6 which is the most important part of the Memorandum, and which states, inter alia : phone." I submit that is a far less simple and reliable test than might be supposed. I wonder if the Under-Secretary of State remembers the Wallace murder case in Liverpool in 1931? The accused man was convicted and condemned to death, but subsequently the Court of Criminal Appeal quashed the sentence on the grounds that the case against him had not been proved with that certainty which was necessary. The whole of that case turned upon a telephone message, a message sent to a club, which subsequently was the means of reinforcing the accused's alibi. We may now, I think, since everybody in the case is dead, be morally certain that he did send it. If so, he spoke to two persons, to both of whom he was well known, but they did not recognise the voice as his.

If that can happen—and it can—it is equally possible to call up someone in the voice of another person and carry on a conversation with him without his being aware of the hoax. Indeed, for a jest I have often done it myself with most surprising results. I have even discussed myself and listened to myself being discussed by my correspondent. Modesty forbids me to enlarge upon this. Therefore, deception over the telephone is easy to achieve.

Then the chemist must be satisfied that there is an emergency. But, if you have got over the first hurdle of deception, Mr. Speaker, you can take the second in your stride. We come to the words that

I want to examine one other aspect, namely the Fourth Schedule poisons which are concerned in this order. There are five main poisons described. Three are sedatives and narcotics. Two have very different purposes. I will deal with the narcotics first—amidopyrine, barbituric acid and sulphonal. These are highly dangerous to life, and even if taken in medicinal doses are habit-forming. They, therefore, interest both our drug addicts and their suppliers, as well as our potential poisoners. But the list does not stop there. It also embraces the dinitrocresols—naphthols—phenols and thymols. These are used to attack the bone marrow in cases of over-engorgement of blood, and produce aplastic anaemia, a condition which would be very difficult to detect by ordinary methods of diagnosis in cases of felonious administration.

Finally, there is phenylcinchoninic acid. This is a drug used in Banti's disease, gout, fibrositis and rheumatism. It produces cerebral confusion, including visual and auditory hallucinations. Indeed, I have sometimes wondered if there is a secret supply kept in the Government Whips' Office for the use of Ministers. I wondered this afternoon whether the Lord President of the Council had been having a swig at it, while I listened to his classic exposition of where the House would sit after the Recess. In overdoses it produces, too, what is known as cinchophenic jaundice which generally proves fatal. Indeed, its action is very similar to that of the vegetable poison colchicum, also a specific for gout and kindred complaints. The most infamous of English poisoners, Catherine Wilson, happily hanged in 1862, specialised in the administration of colchicum to her victims, and only after her sixth murder was she even suspected.

Finally, the memorandum concludes with this short sentence:

I submit that for all these reasons— and I hope I have made a cogent case in the public interest—the House should vote for the annulment of this order. In conclusion, I should like to express my appreciation for the help I have received in preparing the technical part of my speech, not an easy one for a layman to deliver, from a distinguished scientist who sits on the Benches opposite.

The hon. Member for Ashford (Mr. E. P. Smith) in his interesting speech has read out to the House so much of the memorandum which accompanied this order that he enables me to dispense with a good deal of explanation. He suggested that this orders seeks to control these poisons in a manner which may prove dangerous and related that to the possession of these poisons by potential murders. Obviously any poison could be used by a murderer. I would point out that the part of the order he refers to relates to Fourth Schedule poisons, which are less suitable for murderers than those in other schedules, particularly those in the First Schedule, which are much more dangerous. I have not been able to trace any information which would suggest that the very short list of poisons in the Fourth Schedule includes any which have at all recently been used by poisoners or which poisoners have attempted to get hold of.

The real purpose of the Fourth Schedule poisons is to prevent the dangerous and indiscriminate use, without proper expert advice, of certain drugs which are quite legitimate and necessary for the treatment of ill-health. We have recognised that in many new rules of this kind, while we want control of the purchase of poisons to be as tight as possible, it has to be related to practical problems. These poisons are required for medical treatment and we have to take account of the legitimate needs of doctors and hospitals. Under existing Rule 12 of the 1935 Rules, before this proposed amendment, these poisons could only be sold on the prescription of a qualified medical practitioner or certain other authorised persons. Under paragraph (4) of Rule 12, the poison could only be supplied once on a prescription, unless the prescription stated that it might be dispensed more than once. I just want to make that point because I think we have to take this order as a whole, and I want to deal with these particular words about dispensing more than once.

The effect of the rule as it stood was that any prescription which used the word "repeat," or the words, "repeat as required," enabled a person holding a prescription to obtain supplies for an indefinite period. There was a case quoted in the memorandum, and a case was brought to my notice of a prescription which bore the words, "repeat weekly" being repeated 104 times. That resulted in an undue quantity of a drug getting into the hands of a patient who originally had it for a proper purpose. That opens up great possibilities of these drugs getting into wrong hands. A prescription which is no longer used may many months later be picked up by someone other than the person for whom it was originally prescribed. It would still be perfectly valid.

That gave a good deal of worry to the Poisons Board, and to the Home Secretary. Therefore, in putting forward these amendments, what has been attempted is to tighten up that aspect of the matter very considerably, and thereby greatly to reduce the facilities for people to get these drugs; and at the same time, to include one small relaxation to meet legitimate cases of emergency.

It is to that small relaxation to which the hon. Member has directed all his remarks. That relaxation was largely made necessary because the other parts of the rules have been so greatly tightened up. I would also point out that the particular relaxation, which permits supply without a prescription in cases of emergency, subject to a prescription being supplied in 24 hours, has a parallel in the existing rules dealing with the more dangerous poisons in the First Schedule. There is a rule in exactly the same terms making provision for emergency supply, subject to a prescription being furnished in 24 hours. Why it is not so in the case of Fourth Schedule poisons I do not know. This has worked well in that case, and I do not think we shall find that in this case it will give rise to any danger.

I do not think I need go, in any detail, into the manner in which we have tightened up the regulations. I would only point out that we have, I think effectively, dealt in Rule 3 of this new order with the danger of the indefinite repetition of the supply of these poisons on a single prescription. The supply cannot be repeated at all unless on the prescription it is stated that it should be repeated for a stated number of times, or at stated intervals. If instructions on either of these points are there, if, for instance, it is stated that the supply shall be repeated three times, without stating any intervals, the repetition cannot be made more than once every three days. If, on the other hand, the instruction is that the supply shall be repeated weekly, but the maximum number of repetitions is not stated, the supply will not be repeated more than three times.

The hon. Member read out the greater part of the paragraph which describes this relaxation, and he pointed out that it is hedged with many restrictions. It has to be an authorised seller of poisons, who has to be reasonably satisfied that the person ordering the poison is a duly qualified medical practitioner; he has to be satisfied that there is some emergency in which the medical practitioner was unable to furnish a prescription in advance, and he has to have an undertaking that a prescription will be furnished in 24 hours. It is also said that the supply shall not be repeated unless such a prescription has been given.

The hon. Gentleman raised the case of somebody, after a street accident, dashing into a chemists and saying that this or that was necessary, and getting the pharmacist to dispense it. But we have to depend on the common sense of the pharmacists; if they are not going to be sensible, or are going to be corrupt, the whole control breaks down. But what is envisaged is not the case of that sort at all. These drugs will not be used in those cases at all; these are not drugs normally used in accidents.

What about sulphonal in cases where a patient is allergic to morphine?

I am not able to compete with the hon. Gentleman in technicalities, but I have taken advice on this point, and I do not think that it would arise although, as he says, it is not inconceivable. What is more likely is that somebody who has a prescription breaks the bottle containing the drug, and the prescription is handed in again; but then, the pharmacist can ring up the doctor. We are really up against the problem of enforcement. There is reason to suppose that where the drug is urgently needed, and it is impossible, or difficult, to get the prescription provided in advance, there has been collusion between the doctor, and the pharmacist, and the patient, and they have felt it necessary to break the law in order to provide that prescription. It is not a good thing to bring the law into disrepute by retaining this restriction. We know that it is not fully observed, and we think it better that there should be a tight, general restriction for this emergency.

I really do not think that the risk is very great, and I would point out that it is very unlikely that any pharmacist called on to supply a drug in this way without a prescription would supply sufficient for a fatal dose. He would not supply more than was necessary and, perhaps, say, sufficient to induce sleep for a single night; but not sufficient to kill, and he may not repeat it unless he gets a prescription. It is inconceivable that, in a case like this, without a prescription, he would supply a fatal dose. He is, in any case, under these rules, compelled to have the prescription supplied.

So far as potential murderers may be involved, I suggest to the hon. Gentleman that the sort of case he speaks of, although possible, is not different from say, a forged prescription. We cannot have regulations entirely proof against fraud. Enforcement of the present rules is difficult and incomplete, and, secondly, by common agreement with the Poisons Board, we have found there are occasions of emergency where these provisions are necessary and it is the fact that doctors and pharmacists have felt it necessary to break the rule. This does not relax the Fourth Schedule poisons regulations, and this is the more practicable way of restricting and is, in fact, more restrictive than the older rules.

I am grateful for the lucid explanation of the Under-Secretary, but I cannot say that I am at all satisfied. He has ridden off on a horse I never entered for the race, namely, repetition of the prescription. I do not intend to press this matter to a Division at this time of night, but I want to emphasise that if anything goes wrong under this relaxation of the control, if any untoward mishap occurs, as it may do, I can only say to him and the Home Secretary "you have been warned."

Does the hon. Member wish to withdraw his Motion?

Yes; I beg to ask leave to withdraw the Motion.

Motion, by leave, withdrawn.

Overseas Information Services

Motion made, and Question proposed, "That this House do now adjourn."— [Mr. Joseph Henderson.]

12.16 a.m.

I must apologise to the House for raising at so late and hot a time another subject. I do not suppose very many Members will avail themselves of the opportunity of discussing the subject of the Government overseas information services. I want to raise this subject because I think it is one of great importance to us today. While one does not want to indulge in a war of nerves, one must appreciate that the Cominform is a highly organised and well-knit structure, capable of sustained and coherent propaganda on a great many points, and that we also have the right to state our case and project our way of life into Europe and the rest of the world, and state what value that way of life has in the present situation in the world today.

It is still pathetically true that millions in Europe and elsewhere hope for the success of the experiment which is being made in this country, want to hear about it, and want to be assured of our stability and our capacity to weather the storm. The Central Office of Information does a very good job in its overseas services, but it is a good job on a limited scale. The scale is limited because the Government do not take this sufficiently seriously and do not allow the Central Office of Information sufficient scope. To give an illustration of my point, immediately after the liberation an illustrated paper was produced something like "Picture Post," having a circulation of between a quarter and half a million and issued in France every fortnight. Today the only medium we have in France is a sort of Readers' Digest called "Echo," a very good little job, but with a circulation of only 100,000. If we had something like an illustrated newspaper we could do a great deal more with it. We do not need to make a profit, but it is much better to sell your propaganda than to give it away, as people believe it more then.

That is an illustration of the sort of rundown we find when we compare the emphasis put on trying to project our way of life abroad, at the end of the war, with the emphasis placed on it today. I think the basic trouble with the Government's overseas services is really that no one knows who is responsible for them, or which people are responsible for what. There is no really coherent theme or policy running through them. We have a large number of agencies "having a go." The B.B.C. overseas services peddle their particular lines. So does the British Council, but it is a semi-autonomous and independent organisation. Recently, since the war, the Foreign Office have moved into the field and taken a great interest in it. We have the Central Office of Information which runs its services also, operating on its own.

Then we move to the Commonwealth Relations Office. They take a great interest in this subject, too, and they are not content with having their own particular part in this scheme; they have sub-divided it and have one sort of propaganda and one sort of instrument and machinery for dealing with India and Pakistan, and another for the British Dominions. Then one moves down the road to the Colonial Office, who are also doing their own propaganda and have their own conception of what people should be made to understand abroad of what Britain is about. Finally, there is the Stationery Office.

There are various Ministerial Committees not usually talked about in the House which are supposed to have an overall view. In a previous Debate on this subject, one of the speakers on the Opposition Front Bench did go into some detail regarding the composition of these committees, but these committees are an indication of the complexities of dealing with our overseas information, and none of them has either sufficient power or energy to deal with this problem effectively. We cannot compete with the highly efficient Cominform with an inchoate mass like this.

No one is responsible for the educational side or for making the position clear as to whether such and such a thing should be done. It appears to be no one's operational responsibility when there is something like the recent crisit in Czechoslovakia, or the present crisis in Berlin, or even of a simple thing such as Facists and Communists in official positions in our own Civil Service; it s no one's responsibility to say on any particular issue, "We have to explain this to the world; we must get it done by next Friday."

It is no one's responsibility to have something printed and circulated through our agencies. Nothing like that happens at all. There are several committees meeting as to what should or should not be said about Western Union, but nothing very much comes out about where we stand on Western Union, what we ought to say to the other European countries about it, and how we are going to get the support of Europe for this project. It may be that the Government do not take Western Union very seriously. If they do not, I can understand it, but I think they do, and the people in Europe ought to be hearing far more about it and about the Government's stand. Everything is simply shrouded in mystery in the overseas services.

From time to time, people have given estimates of the total and separate costs of all the various agencies, and it is very nearly impossible, unless one is a chartered accountant, to work out what is the cost of these. Therefore, I should like the Under-Secretary to give us the total cost of all the overseas information services undertaken by the Government and the cost of each of the items which I have mentioned. All we can safely say is that it is something well below £10 million a year. Probably it is something in the neighbourhood of £6 million. That is a quite ludicrous sum. A battleship costs a great deal less than that. It is a ludicrously small amount to be spending on an arm or weapon which can be a vital factor in our psychological defence, and one which may do us a great deal of good throughout the world.

Instead of being extended, these services today at a critical stage of world affairs are being cut down. There has been a 10 per cent, overall cut. The B.B.C. were spending £4,400,000 a year on their overseas services up to January, and then there was a 10 per cent. cut. What happens? It means that for the overseas services outside Europe 20 per cent, of the hours of programme production are lost straight off. That is a 20 per cent, cut in the choice of overseas programmes available outside Europe, which come from the B.B.C. in London. The service has been a tremendously important factor for us in the Far East. The B.B.C. put out some excellent programmes; now they are arbitrarily cut.

I should like to know exactly what publications we have going abroad. I think there are three or four of them, but we have not had a clear statement of them, the size of their circulation, where they circulate, what news they are printing, and what efforts are made at extending them. Also associated with this problem of projecting Britain abroad is the importance of someone in the Government having responsibility for keeping an eye on activities which do affect the impact which Britain makes on countries overseas. These things are not necessarily under the Government's control, but nevertheless when they get out of this country they make other countries feel something about this country and help them to form an opinion of it.

For instance, during the war Reuters were operating in nearly all, if not all, the South American countries. It is a very important thing for us, and has been for many years, that Reuters should be in as many places as possible. It is not only an insurance that we get reliable and accurate news from those countries, but it keeps Britain's name and prestige flourishing. During the war the Government came to the assistance of Reuters in the South American countries and went so far as to subsidise it. But now nothing is being done and Reuters are beginning to pull out of the areas there. It is most important that we should do something to make sure, as far as possible, that Reuters maintain their worldwide position and are not allowed to pull out.

In some countries practically nothing about Britain is published. For instance, Russia seldom sees a British film. It may not matter much perhaps, but it is important that someone should have an overall position to see that our films and publications get to all those areas. One of the troubles may be that the Foreign Office has taken so large a hand in all this. I believe that they are not technically competent to run these specialised information services in the way the Central Office of Information could run them because of the experience they have had. We get the rather absurd situation in which, for instance, the London Press Service is partly edited in this country by the Central Office of Information and then it is sent overseas, where it is re-edited and finished by Foreign Office officials. There cannot be really good editing of a publication if two men are doing it. It is rather like a newspaper being run by both sides of the House and edited jointly by them. It would not have a great success.

Those are the important points which I wanted to raise tonight. It is a very important thing to avoid propaganda in what we send overseas, and that at the moment is being successfully avoided by the Central Office of Information. To project properly our way of life, however, we need much more energy and authority behind it. It is much more important to spend another £10 million on Government information service than to spend £10 million on a battleship, because it will do much more good, there will be much less wastage of manpower, it will be less wasteful in materials and it will be much more valuable to this country.

12.30 a.m.

I think a good deal of the case made by my hon. Friend turned on the allegation that our information services are very incoherent, are ill-organised and badly put together. It is, of course, true that our information services are, as the hon. Member said, complex, but I hope I can persuade him that because they are complex that does not mean that they are incoherent, and that the pattern on which they are built is the only possible pattern for a democratic country, and the most effective way of carrying out propaganda.

The principle on which our overseas information services are based is, of course, the distinction between policy, on the one hand, and execution of policy, on the other. That principle runs through the whole of our Government method. It is also important to understand that we cannot really have an information policy distinct from our general policy. It is not a trick or a stunt: it grows out of, and is part of, general policy. If we apply those two considerations, it follows that the principle must be applied that each Minister is respon- sible for that part of publicity that falls within his own sphere of administration just as much as he is responsible for all other policy that falls within his sphere. That means that the three overseas Departments, the Foreign Office, the Commonwealth Relations Office and the Colonial Office must be responsible in their own sphere for the policy of information, and that means that on the policy side they must each act through certain executive agencies.

There are a number of these executive agencies, which are different in their nature and different also in the degree of policy control that is exercised over them. My hon. Friend mentioned the British Council and he agreed that it was right that it should be somewhat autonomous. It is necessary when doing educational or cultural work, that a body of that sort should be autonomous and not part of a Government Department. On the other hand, there is the Overseas Service of the B.B.C. and I am sure my hon. Friend would not want it to be absorbed into Departments or into one Department. That Service built up in the war a very great reputation, largely based on its independence, and its freedom to express—even in wartime—various aspects and differences of opinion about what was happening here. With regard to the B.B.C. Overseas Service and the British Council, the control of policy by the Departments concerned is very slight —though greater with the British Council than with the B.B.C.

In the case of the Central Office of Information, which covers all the remaining field, the control is, of course, very strict indeed because the C.O.I, is a central service and has no policy of its own at all. Its duty is to carry out and execute, which it does very skilfully, the policy of the overseas Departments which it has to serve. If it is looked at in this way, then the distinction between execution and policy falls in, through its nature, with the general pattern of the way in which we organise our overseas services. That organisation is, therefore, I suggest, certainly coherent and is the only possible one we can apply in a country governed as ours is.

The main part of the overseas work and its execution, which is controlled by the overseas Departments, is the C.O.I. My hon. Friend said that there were no C.O.I, overseas officers editing the work we put out for the various papers produced overseas. That is certainly true. He described it as an absurd situation that we should have duplicating editors. It is not so absurd as that, because it is very like the way in which Reuters would employ an editor to send out news, and the newspapers which use Reuters' services will have their own editors. In any case, I think there are important reasons why the actual editors who produce the stuff which goes into the newspapers, or who put it together to pass on to newspapers in the countries in which they are working, should be the servants of the Department concerned —the Commonwealth Relations Office, the Foreign Office, or the Colonial Office.

The Foreign Office and the Commonwealth Relations Office, which are dealing with independent countries, maintain officers who are skilled in their work. Many of them were Ministry of Information officers during the war. It seems to me there are two great advantages in having these people employed by the Departments. The first is that we can get better people into this job, who have to be young men in the main, if before them lies the whole range of promotion in the service in which they are working. Secondly—and this is extremely important —if these people are part of the service of the Department, it means that in the course of time the overseas part of the Department fills up with people who have had experience in information work, and that is good for the service. Many ex-Ministry of Information people are now working as information officers, and the Central Office of Information is invited by the overseas Departments from time to time to send its experts overseas to advise on the spot, and there is a good deal of co-operation of that sort.

My hon. Friend mentioned the 10 per cent, cut for the year 1948–49. The explanation is that it was a necessary economy. There is a limit to the amount we can spend, in this and other ways. The Chancellor of the Exchequer of the day came to the conclusion that we were, in general, spending too much in relation to other expenditure, and this cut was imposed. It was not a 10 per cent, cut on everything. The Departments worked it out and made it heavier on some things than on others. I cannot tell him how long it will go on. I cannot prophesy what next year's Estimate will be. I can assure my hon. Friend that the Government do place the greatest value on our information work overseas, and that is shown by the cost of these services after the cut. It is very much greater than my hon. Friend thought. He talked about £6,000,000. The total estimated expenditure in 1948–49 at present rates will reach £11,622,000. It is a little difficult to be precise about how much is overseas, because some of the services are overlapping and partly cover home service. I could give him the breakdown under the various heads, but if he would like these perhaps he will put down a Question. The B.B.C., which he mentioned, is still running at £4,500,000 a year.

In spite of this cut, very great and important achievements stand to the credit of the Central Office of Information, and I was very glad to hear him praise its work, which I think is unrivalled in the world. I agree that not enough is known about it, but it is not the job of the overseas services to make propaganda about themselves at home. To mention one or two of the things done, the London Press Service sends out some 8,000 words a day, which are edited in the various information posts and passed on in suitable form to the newspapers. The system now used is slow morse, but Hellschreibers are being installed and this service will increase in speed. Something like 30,000 items and articles a month are being placed in the world's Press through this service.

He asked about publications. I am afraid I cannot give him all of them, and I suggest he puts down a Question about the details of publications. As for the magazines, he mentioned the "Echo" series, and I thought he did not do full credit to that series. It has a very high reputation in Europe. It covers many countries and not only France, and runs to seven or eight editions. It has a good deal of effect upon the outside world in the opinion it forms of this country. The "Echo" series sells 700,000 copies a month. There is another magazine which is very valuable called "Today" which is produced by the C.O.I, for the Colonial Office. It is produced in English, Swahili, Malay, Chinese and Tamil. 65,000 copies per issue are distributed. These magazines and the papers produced by the C.O.I, for the Foreign Office have one specially useful purpose. They are one of the very few means by which the gulf between East and West is being bridged today. There are two papers produced on the spot by editors from material supplied largely by the C.O.I. In Russia there is the "British Ally," which sells 65,000 copies a month, while in Poland our paper "Voice of Britain" sells 50,000 copies. There is another system by which the C.O.I, arranges bulk supplies of papers and magazines in countries, mostly Iron Curtain countries, where currency difficulties make it impossible for ordinary commercial channels to work.

I might mention the non-Governmental activities like those of Reuters and the films. Our general policy is not to interfere with non-Governmental activities of this sort, but to leave them free. The prime purpose is to project Britain, and one of the things about Britain is that we do have non-Governmental activities of this sort, and there is also the consideration that Britain must, as it were, be allowed to project herself by all these means. Reuters has a tremendous reputation in the world, but it is a reputation which depends in part on Reuters not being controlled or subsidised by the Government. It does not want to be subsidised, and I do not think my hon. Friend would suggest we should force subsidies upon it. In the same way, although both the Commonwealth Relations Office and the Foreign Office are ready to give advice about films which are desirable or undesirable, there is no direct control over them. A number of films are made by the Government for various Departments which have a considerable distribution in the world. In the Argentine we show there films to a non-theatrical audience of 180,000 a month.

This freedom from Government control is part of our policy, which is natural in a state of democracy. The States of the Cominform type, one-party States, have a rigid publicity system, whereas we prefer a looser pattern.

So long as it is not too loose. I agree that there must be a proper degree of Government influence, but it is our policy to leave the pattern reasonably loose and suitable to a democracy. In any case, no one can compel people abroad to listen to or read our publicity. The great attraction of a democracy to the audience we aim at, is that democracy is democratic. It does not claim infallibility; it allows the listener or reader to form his own judgment. It even presents more than one view about its own activities. Our overseas services are so successful just for this reason and because we have highly skilled people working in them. Despite my hon. Friend's strictures, I think we have the best overseas information service in the world.

Question put, and agreed to.

Adjourned accordingly at a Quarter to One o'Clock a.m.