Skip to main content

Commons Chamber

Volume 525: debated on Monday 15 March 1954

House of Commons

Monday, March 15, 1954

The House met at Half-past Two o'Clock

Prayers

[Mr. SPEAKER in the Chair ]

Private Business

Towcester Rural District Council (Abthorpe Rating) Bill

Wear Navigation and Sunderland Dock Bill

Read the Third time, and passed.

Crewe Corporation Bill

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

NORTHERN ASSURANCE BILL [Lords]

Read a Second time, and committed.

Oral Answers to Questions

Questions

Anglo-Soviet Relations

asked the Secretary of State for Foreign Affairs whether, with a view to improving and strengthening Anglo-Soviet relationship, he will make proposals to the Soviet Government for an interchange of parliamentary delegations between the two countries.

As the hon. Member is aware, I am prepared to keep this suggestion under review. But I do not consider that this is necessarily the best moment for any such initiative from our side.

May I thank the Foreign Secretary for that very warm and sympathetic answer? Will he state when he feels the situation warrants a further Question being put on the Order Paper giving him an opportunity to put this suggestion into practice?

Yes, Sir; but the hon. Gentleman will have noticed that the elections to the Supreme Soviet took place yesterday. I do not think it would be proper for me to anticipate the result.

When does my right hon. Friend think the appropriate moment will arise for a visit of the Russian parliamentary delegation?

Can the right hon. Gentleman say whether there has been an invitation from the Supreme Soviet of Russia since they came here in 1947 at our invitation?

Germany

Nazi War Criminals (Reburial)

asked the Secretary of State for Foreign Affairs what steps he is taking to prevent the further recrudescence of Nazism, as recently demonstrated by the decision of the German authorities to rebury in the hallowed ground of a Lower Saxony municipal cemetery 91 Nazi war criminals, including Joseph Kramer and Irma Grese, found guilty of crimes against humanity, and executed after a full and fair trial by a British court for murder.

asked the Secretary of State for Foreign Affairs whether he is aware of the growth of neo-Nazism and militarism in Germany, which is fostered by acts such as the exhumation and re-burial of German war criminals and their representation in the German Press as a new myth of martyrdom; and what steps he will take with the German authorities to stop this forthwith.

Her Majesty's Government have no responsibility for the action of the Lower Saxony Land Government in transferring these bodies to a mass public grave. This did not require British permission, and I do not propose to take any action in the matter.

Whatever the explanation may be, is the Foreign Secretary not aware that this action has caused angry protests, and that there is widespread concern at this action, which is contrary to all the official German professions of having repudiated Hitlerism and Nazism? Does not the right hon. Gentleman think that, as an occupying Power, we ought to protest at this action?

I do not read what the hon. Gentleman does into this event, and I feel more sympathy with the letter which Mr. Victor Gollancz wrote to "The Times." What has actually happened is that the relatives who were anxious to visit the graves could not do so except by visiting the prison, and they asked that the bodies should be removed to some other place where they could visit them and where they were all once more put into a mass grave. I do not think that is a matter about which Her Majesty's Government should protest.

Surely the right hon. Gentleman is aware that these people were found guilty of the most terrible crimes, that there was unspeakable sadism in their actions prior to the time that they committed the murders of hundreds of thousands of people? Is he really suggesting that a similar thing could happen anywhere else in the world and that if criminals of that nature had been buried within prison grounds they would be exhumed and reburied elsewhere? Will the right hon. Gentleman please make a protest, as so many people are anxious to ensure that this kind of thing does not create in Germany the idea that these acts are tolerated by any other human beings?

I am certainly not prepared to make a protest about this. I think this was done decently and without provocation. There was no demonstration or anything of the kind at the time, and I am not prepared to pursue hatred beyond the grave.

Atomic Weapons

3, 4 and 5.

asked the Secretary of State for Foreign Affairs (1) what restrictions have been placed under the Bonn Agreement by the Allied Occupation Powers upon development of atomic energy for civil or military purposes in Western Germany;

(2) what approaches have been made by the Federal Government of Western Germany to the Allied Occupation Powers, Great Britain included, to establish atomic energy plants, including breeder reactors, in Western Germany;

(3) what is the policy of Her Majesty's Government with regard to the sale of fissionable material to Western Germany.

I would refer my hon. Friend to the answer I gave on 11th March to my hon. Friend the Member for Heston and Isleworth (Mr. R. Harris). No approach has been made by the Federal Government of Western Germany to the Allied Occupation Powers to establish atomic energy plants, and no question of selling any fissile material to Western Germany has been raised.

While thanking my hon. Friend with a good deal of relief for his reply, may I ask him, in view of the progress which is now being made towards the creation of a European Defence Community, whether this matter may be brought to this House for discussion and that no relaxation of the existing restrictions in the Bonn Agreement be allowed until this House has had a very full opportunity of discussing all the widespread consequences that might follow?

I do not follow my hon. Friend in saying that because progress is being made towards the European Defence Community any further action by this House is required. The situation is, as I think he will agree, adequately covered. Article 107 of the E.D.C. Treaty lays down that atomic weapons and nuclear fuel suitable for atomic weapons may be produced in such areas as Western Germany only with the unanimous approval of the E.D.C. Council, and Dr. Adenauer has further undertaken to introduce legislation to prohibit the development, purchase or posesession of atomic weapons and the import or production of nuclear fuel in any quantities which would be suitable for producing atomic weapons. I think that my hon. Friend will agree from that that the position is adequately covered.

Berlin Conference White Paper (Speeches)

asked the Secretary of State for Foreign Affairs whether he will publish an Addendum to the White Paper on the Berlin Conference, Command Paper No. 9080, giving the text of the speeches made on 17th February in connection with Item II of the Agenda, German question and problem of European security.

As stated in the Introduction, the White Paper on the Berlin Conference includes only the principal published speeches by the four Foreign Ministers. The only published speech on 17th February was that of Mr. Dulles, which is reproduced on page 119 of the White Paper. Since it would be incorrect to publish Ministers' speeches which were not made public in Berlin, it would not be possible to publish the addendum suggested by the hon. Gentleman.

Is the hon. Gentleman aware that the speech of Mr. Dulles was made in reply to one by Mr. Molotov which does not appear in the White Paper, and that in the speech of Mr. Molotov there is a very interesting discussion of the question whether or not the European security proposals made by Mr. Molotov were compatible with N.A.T.O.? It is a very important question of policy, and surely ought to appear in the White Paper or an addendum to it?

Whatever may be the importance or interest of Mr. Molotov's speech on this occasion, he himself did not see fit to make it public. It is not for my right hon. Friend to publish speeches by Mr. Molotov that Mr. Molotov has not seen fit to publish himself.

Police Forces (Soviet Proposal)

asked the Secretary of State for Foreign Affairs whether he has completed his study of the proposals made at the Berlin Conference regarding the limitation of the size and armament of the police forces in East and West Germany; and whether he will make a statement.

I would refer the hon. Gentleman to the reply given to the hon. Member for Uxbridge (Mr. Beswick) on 24th February.

Is there any further progress in this matter? Surely here we have a very reasonable suggestion that might lead to an important limitation of the armed police forces which exist in both East and West Germany, and surely such a limitation would be desirable in the interests of all parties?

No, the responsibility for the Federal Police in Western Germany is that of the Federal Government. Therefore, no agreement can be reached on matters concerning the police forces in Western Germany save between the Federal authorities in the West and East Zone regime. As has been agreed by all parties in the Bonn Parliament, they would not be prepared to treat with the East Zone regime on this or any other matter.

Was not the proposal designed to find out the facts about the police forces or neo-military forces on both sides of the border? As there has been such a lot of speculation about this, would it not have been a good thing to have found out what the facts were?

I do not agree that it was designed to find out the facts. On the contrary, if the hon. Gentleman will read the White Paper he will see that this proposal was lifted bodily out of the context of Mr. Molotov's security treaty.

If a Question were put down, would the hon. Gentleman be in a position to state the size and nature of the armaments of the respective armed forces in East and West Germany?

Most certainly. I should be delighted to do so. I think the right hon. and learned Gentleman would then see that there is a very favourable comparison.

Pilots (U.K. Training)

asked the Secretary of State for Foreign Affairs in what circumstances his sanction is required by Air Service Training Limited before they can utilise the services of German airmen or train them for special functions; and if he is satisfied that the German subject who was imprisoned for transmitting wireless messages for the Japanese after the German surrender, and about which he has particulars, is now suitable for this training.

There is no need for private firms engaged in this type of training to obtain my right hon. Friend's sanction. As regards the second part of the Question, the selection of these pilots was the responsibility of the German Federal Government.

Do I understand from that answer that any kind of ex-Nazi pilot can come over here to be trained by this firm without any kind of examination being imposed on him by the British Government? Does the hon. Gentleman think that satisfactory?

No, the hon. Gentleman should not read that into the answer I have given. In any case, the German the hon. Gentleman has in mind, about whom, I think, he has sent my right hon. Friend particulars, was not a member of the Nazi Party. I have to admit, however, that the choice which was made of this pilot could have been a happier one.

Questions

Formosa (General Chiang Kai-Shek S Statement)

asked the Secretary of State for Foreign Affairs whether his attention has been called to the official pronouncement by the Prime Minister of the Chinese Nationalist Government in Formosa on 4th March that active final preparations were being made for an attack on Communist China; and whether, in view of the forthcoming conference at Geneva on the Far East, he will consult with the United States Government with a view to preventing any such attack.

Yes, Sir. I have seen this pronouncement, which is in very general terms and does not differ from earlier statements of the same kind. The United States Government are already well aware of Her Majesty's Government's opposition to the idea of a Nationalist attack upon the mainland of China.

Would not the right hon. Gentleman agree that it would seriously threaten peace in the Far East and frustrate the objects of the Geneva Conference if any such adventure were to take place in the next two or three weeks?

I think that the Prime Minister described this quite well to the House two years ago, when he said:

"Few adventures could be less successful or fruitful than for Generalissimo Chiang Kai-shek to plunge on to the mainland."—[OFFICIAL REPORT, 26th February, 1952; Vol. 496, c. 982.]

I think that that is still the general view of the Government.

Cyprus (Status)

asked the Secretary of State for Foreign Affairs what official approaches have been made by the Greek Government for bilateral talks about the future relations of Greece with Cyprus: and what reply has been sent.

Certain informal approaches have been made and there have been statements by Greek official spokesmen indicating that the Greek Government would like to hold bilateral discussions, but, as has been made clear to the Greek Government, Her Majesty's Government cannot agree to discuss the status of Cyprus.

British Subjects (Russian-Born Wives)

asked the Secretary of State for Foreign Affairs what reply has been received from the Soviet Government to the further representations made in respect of Russian-born wives of British subjects who have been prevented from leaving the Union of Soviet Socialist Republics.

Her Majesty's Ambassador raised this question with the Soviet Minister of Foreign Affairs last November. I myself made personal representations to Mr. Molotov on behalf of these Russian-born wives during the Berlin Conference. I regret to state, however, that on 27th February the Soviet Ministry for Foreign Affairs informed Her Majesty's Ambassador that Mrs. Rickitts, Mrs. Burke, Mrs. Henderson and Mrs. Bolton had dissolved their marriages with their British husbands. The husbands have been informed accordingly. This outcome of the matter will afford little satisfaction to those concerned in this country, but there is unfortunately nothing more we can do to secure Soviet exit permits for these women, who, in Soviet law, are Soviet citizens.

Is the right hon. Gentleman aware that the information he has just given will be received with much regret and not a little suspicion by the ordinary people of this country, who believe that this tragedy should not have occurred? Is there any evidence that the Russians realise just how important it is for good will that, from whatever country people originate, husbands and wives should live together wherever possible?

I agree with all the hon. Gentleman has said. We have certainly done our best to bring this matter home. As I say, I raised it myself with Mr. Molotov in Berlin. I am only sorry we were so unsuccessful.

As the Foreign Secretary has expressed his agreement that husbands should join their wives and that wives should join their husbands, will he express his pleasure at the fact that Mrs. Maclean has joined hers?

United Nations (Chinese Representation)

asked the Secretary of State for Foreign Affairs if the question of the entry of China to the United Nations Organisation will be one of the matters which Her Majesty's Government will be prepared to discuss at the Five-Power Conference at Geneva.

The Conference at Geneva is not a Five-Power Conference but will be a meeting of the Powers concerned for the particular purpose of discussions on Korea and Indo-China.

Will the right hon. Gentleman agree that the Five Powers will meet at Geneva and does he not think it quite unrealistic to expect a statement on Far Eastern affairs unless the possibility of China entering the United Nations is considered?

That is another matter. The hon. Member is now asking me what will happen at the meeting; but the arrangements for the meeting were not for a meeting of Five Powers but a meeting of a number of Powers, more than five for the first item and an indeterminate number for the second.

Will the right hon. Gentleman make it clear, both at the Conference and before, that Her Majesty's Government are in favour of the entry into the United Nations of Governments which effectively control their countries and are prepared to observe the obligations of the Charter not to resort to force or make attacks on their neighbours?

I think that our general views are known, but I am bound to repeat what I have said to the House before, that so far as our relations with China are concerned they are very far from satisfactory. We have recognised them and they are paying little or no heed whatever to most important British interests.

Korea and Indo-China (Geneva Conference)

asked the Secretary of State for Foreign Affairs what proposals for the easing of international tension he intends to place before the coming Geneva Conference.

A successful outcome of the Geneva Conference, which is to discuss Korea and Indo-China, would be an important contribution to the relaxation of international tension. I am not prepared to make a statement in advance on what will be our proposals on these two questions.

Would not the right hon. Gentleman agree that the time has come for some initiative on our part and that there is opinion in this country that we are just following at the tail of the policy of the United States Government? Is he aware that he would win a great place in international history if he put forward some bold constructive plan which would result in world peace?

I do not think that what the hon. Member has said was the impression that emerged from the Berlin Conference. We did at least play our full part in Berlin, and we shall do the same thing at the Geneva Conference but, if I may say so, I should prefer to do it in my own time and by my own methods.

Ministry of Food

Canned Fruit Imports

asked the Minister of Food the prospects for imported canned fruits for the remainder of the year.

In order to give the Minister the opportunity of giving encouragement to the housewives, may I ask if he expects a big quantity of American canned fruits to be made available which can be bought at very cheap prices? If so, will the Minister pass the fruits on to the housewife at a reduced price, or will the price have to help to make up for the cost of eggs?

I am not in a position to give information on the first part of the hon. Member's question, but the total supply this year should be something like 75 per cent, of pre-war.

When my right hon. and gallant Friend is considering the importation of canned fruits from the other side of the Atlantic, will he keep always in mind the necessity of importations from Canada as well as the United States?

Has the Minister any powers to see that these imports are distributed fairly over the country, and particularly in the North-East where there are complaints of short supply?

There was a short supply, last year, when supplies were only equal to half pre-war, but distribution has been scrupulously fair ever since controlled distribution started.

Lard

asked the Minister of Food when the shortage of pure lard is expected to end; and what are the prospects in the immediate future.

Will the right hon. and gallant Gentleman be good enough to explain why, for months past, there has been no lard at all? Is it because the pork which is sold to the shops is too fat to eat, or because of shortage of dollars? If it is because of shortage of dollars, how can the Minister spend so much on wheat and not on lard which the housewife wants very badly?

I should have thought that the housewife wanted bread very badly; I should have thought that wheat would have to be the first charge on any import programme. The importation of lard is entirely a question of dollars. We should need between 80,000 and 90,000 tons of lard, which would have to be bought from the United States at a cost of roughly 35 million dollars. Home production represents about one-fourteenth of an ounce per head per week.

If it is a matter of dollars, how will decontrol solve the problem?

I would ask the hon. and gallant Gentleman to wait and see. In the case of other commodities which have been decontrolled, the position has been found to be far better than under control.

Slaughterhouses

asked the Minister of Food if he will make a statement with regard to the number of slaughterhouses which will be necessary as a moderate concentration in the County of Dorset.

The number required under the long-term policy of moderate concentration in this and other parts of the country is under consideration by the Inter-Departmental Committee on Slaughterhouses.

Is my right hon. and gallant Friend aware that the three parties who are interested in the decontrol of meat, the producer, the butcher and the consumer, are looking to him to give a decision on this matter as quickly as possible? Will he, therefore, with all speed push forward and give an answer on the moderate concentration of slaughterhouses?

My hon. Friend will appreciate that there are two different problems, that is, the interim problem and the long-term problem of moderate concentration. The second one is extremely complex and takes considerable time, not only to decide on sites, but actually to carry out the scheme. The interim arrangement is, of course, to cover the period after decontrol next July. That is a totally different problem to which I am paying attention now.

asked the Minister of Food if he will now make a statement about the number and siting of slaughterhouses; and whether he will give favourable consideration to the claims put forward to him by the Stockton-on-Tees Corporation for the siting of a new slaughterhouse on grounds acquired for this purpose.

The Inter-Departmental Committee on Slaughterhouses is drawing up a siting plan for the long-term policy of moderate concentration of slaughterhouses. The proposals of the Stockton-on-Tees Corporation will be taken fully into account by the Committee.

Is the Minister aware that, unless an early decision is taken on this, there is likely to be considerable chaos in the arrangements for slaughtering animals and that the proposals put forward by Stockton-on-Tees would provide an admirable centre for South Durham and North Yorkshire?

The hon. Member will appreciate that his is not the only part of the country which has excellent facilities. The purpose of the Committee is to find the best locations over the country as a whole. They hope to do that, but it is a very complex matter.

Margarine

asked the Minister of Food the weekly average consumption of margarine in 1951, 1953 and the latest figure available in 1954.

Issues for the domestic ration and for caterers averaged 6,580 tons in 1951 and 6,590 tons in 1953. In the eight weeks ended 26th December, 1953, the average was 7,300 tons and in the eight weeks ended 20th February, 1954, 6,480 tons.

Can the Minister explain why the figures in the January edition of the Monthly Digest of Statistics show the 1951 figure as 8,250 tons as against the 6,500 which he has just given?

The hon. Member was good enough before to cast doubt on the veracity of my figures, not only in the case of margarine, but in the case of other things as well. The figures, as I have said before, are for domestic users and caterers. The hon. Member will appreciate that there are other users as well. But I made it perfectly plain originally that I was referring to the ration figures, and these figures are correct.

Irish Foodstuffs

asked the Minister of Food how much food in kind and in money value and of what nature was supplied to Britain by the Republic of Ireland during each of the years from and including 1945 to 1953.

As the reply consists of a table of figures, I will, with permission, circulate a table in the OFFICIAL REPORT.

While thanking the Minister for the detailed factual reply he has promised, may I ask whether it is the policy of the Government to maintain large imports of food from Ireland and what steps he is taking to effect this?

Of course it is. The hon. and learned Member will see from the table that there has been a steady and quite startling increase in imports from the Irish Republic. As I informed him last week, we are in consultation with representatives from the Irish Republic. We have had two meetings and they have returned for further consultations.

Following is the table:

IMPORTS INTO THE UNITED KINGDOM OF FOOD, FEEDINGSTUFFS AND DRINK CONSIGNED FROM THE IRISH REPUBLIC IN EACH OF THE YEARS 1945 TO 1953 INCLUSIVE

Commodity

Unit of Quantity

1945

1946

1947

Quantity

Value £'000 c.i.f.

Quantity

Value £'000 c.i.f.

Quantity

Value £'000 c.i.f.

Fat Cattle

Number

13,900

311

15,659

446

51,259

1,671

Store Cattle

Number

432,760

12,045

386,997

11,156

340,060

10,245

Carcase meat and offal

Thousand tons

4·4

395

2·6

234

1·5

133

Bacon and ham

Thousand tons

0·1

20

Poultry and rabbits

Thousand tons

12·0

2,266

12·4

2,617

9·0

2,254

Canned meat

Thousand tons

14·4

2,135

12·0

1,769

6·0

885

Processed milk and cream

Thousand tons

9·9

863

8·4

737

5·1

480

Eggs in shell (poultry)

Thousand dozen

17,691

2,556

18,352

2,647

13,248

1,906

Fresh fruit and vegetables

Thousand tons

8·1

116

9·9

184

22·1

346

Fish

Thousand tons

10·6

640

7·3

540

6·6

491

Cocoa milk crumb

Thousand tons

( a ))

( a ))

( a ))

Chocolate and sugar confectionery

Thousand tons

0·9

72

2·9

256

2·1

222

Beer

Thousand bulk barrels

934

3,931

930

3,932

898

3,928

Other foods, drink and animal feedingstuffs (including biscuits, flour confectionery, mincemeat, sugar fat mixtures, table jelly crystals, etc.)

Value

963

1,032

1,186

TOTAL

Value

26,293

25,570

23,747

Commodity

Unit of Quantity

1948

1949

1950

Quantity

Value £'000 c.i.f.

Quantity

Value £'000 c.i.f.

Quantity

Value £'000 c.i.f.

Fat Cattle

Number

19,518

733

100,890

4,829

136,572

6,561

Store Cattle

Number

283,079

10,741

313,561

12,874

299,204

12,769

Carcase meat and offal

Thousand tons

1·7

178

2·7

286

6·3

1,017

Bacon and ham

Thousand tons

1·4

325

2·6

578

Poultry and rabbits

Thousand tons

12·8

3,531

13·4

3,620

14·6

4,204

Canned meat

Thousand tons

3·3

476

7·1

1,040

8·5

1,605

Processed milk and cream

Thousand tons

10·0

1,094

14·1

1,426

9·8

1,054

Eggs in shell (poultry)

Thousand dozen

21,741

3,529

34,092

5,601

33,793

4,731

Fresh fruit and vegetables

Thousand tons

19·8

396

36·8

570

27·3

476

Fish

Thousand tons

7·5

691

5·3

606

4·1

716

Cocoa milk crumb

Thousand tons

( a ))

( a ))

( a ))

Chocolate and sugar confectionery

Thousand tons

6·0

828

13·5

1,815

21·1

3,031

Beer

Thousand bulk barrels

901

4,168

1,052

4,731

1,031

4,674

Other foods, drink and animal feedingstuffs (including biscuits, flour confectionery, mincemeat, sugar fat mixtures, table jelly crystals, etc.)

Value

1,553

3,011

6,135

TOTAL

Value

27,918

40,734

47,551

( a ) Included with chocolate and sugar confectionery.) Included with chocolate and sugar confectionery.

Commodity

Unit of Quantity

1951

1952

1953

Quantity

Value £'000 c.i.f.

Quantity

Value £'000 c.i.f.

Quantity

Value £'000 c.i.f.

Fat Cattle

Number

143,150

6,812

85,867

4,894

31,339

2,074

Store Cattle

Number

307,399

13,627

357,905

16,936

398,989

21,386

Carcase meat and offal

Thousand tons

8·7

1,379

22·4

4,746

43·5

10,483

Bacon and ham

Thousand tons

8

0·5

157

5·6

1,476

Poultry and rabbits

Thousand tons

16·9

5,086

18·2

5,056

15·8

4,203

Canned meat

Thousand tons

10·7

2,435

18·7

5,431

12·3

3,912

Processed milk and cream

Thousand tons

10·3

1,231

11·1

1,462

9·7

1,869

Eggs in shell (poultry)

Thousand dozen

17,783

2,613

18,473

3,300

21,495

3,833

Fresh fruit and vegetables

Thousand tons

21·2

423

9·3

567

8·6

748

Fish

Thousand tons

3·9

980

3·1

793

2·9

811

Cocoa milk crumb

Thousand tons

24·9

4,116

30·1

5,227

47·1

7,991

Chocolate and sugar confectionery

Thousand tons

1·5

307

7·7

2,037

39·9

10,515

Beer

Thousand bulk barrels

1,026

4,814

1,023

5,630

1,088

5,489

Other foods, drink and animal feedingstuffs (including biscuits, flour confectionery, mincemeat, sugar fat mixtures, table jelly crystals, etc.)

Value

8,118

13,467

7,383

TOTAL

Value

51,949

69,703

82,173

The above information has been extracted from the official Trade Returns of the United Kingdom. In addition to items in Class I Groups A to H, certain items in Class II Group J, and in Class III Groups O, P and U have been included.

Sweets

asked the Minister of Food what he estimates to be the average weekly consumption of sweets per head of the population for the periods 1938, at the beginning of rationing in 1945, from 1945 to 1951, in 1951 on derationing and at the last convenient date.

As the reply contains a number of figures, I will, with permission, circulate a statement in the OFFICIAL REPORT.

Can the Minister give the latest figures of consumption during the last period that is available?

The latest figure that I have is for the year 1953 and is 81 ounces per head per week. The figure for the four weeks ending 26th December is rather higher, as it includes Christmas, and is 91 ounces per head per week.

Following is the information:

Eggs

asked the Minister of Food what is now the current unit cash allowance being paid by his Department in respect of eggs.

Is the right hon. and gallant Gentleman aware that although the price of eggs fell abruptly it is now going up steadily as the weeks go by? Will he tell the House to what price he intends to restore eggs before he discontinues this process of increasing the price every week?

The hon. Member knows the answer to that question as well as I do, because he had to do the same thing himself, with the difference that he had more from the Exchequer in his day than I have today.

Will the right hon. Gentleman answer the question? Will he first recognise that when eggs were controlled they remained at 5d. for a very long time without seasonal changes? Will he say to what level he is to restore the price now?

The hon. Member knows perfectly well that the price varies with the season. The only significant observation he made was that the price was 5d. in his time instead of 3d., which it is now.

Is the right hon. and gallant Gentleman aware that he and his Parliamentary Secretary have told the House that there were no seasonal variations when the previous control was operated?

Milk Marketing

asked the Minister of Food what effect his proposals about the restoration of marketing powers to the milk marketing boards will have upon the amount of the food subsidy on milk.

Will the right hon. and gallant Gentleman agree that in the statement the Ministry recently made about the restoration of the powers of the Milk Marketing Board it was implicit that the subsidy was to be taken away either by stages or altogether, and that we should know where we are, as this will affect the consumption of milk?

If I may suggest it, the hon. Member ought to read the White Paper a little more carefully. There he will find that so long as an element of consumer subsidy remains, prices and distributive margins will remain controlled by the Government.

Has the right hon. and gallant Gentleman read the statement issued by his Department a fortnight ago?

Rationed Foodstuffs (Non-Take-up)

asked the Minister of Food to state for the latest available period the non-take-up of rationed foodstuffs, given separately for each foodstuff, and expressed as amounts, percentages and number of rations.

As the reply contains a number of figures, I will, with permission, circulate a statement in the OFFICIAL REPORT.

Can the right hon. and gallant Gentleman say what are the latest non-take-up figures for cheese?

Licensed Premises (Glass Washing)

asked the Minister of Food whether his attention has been drawn to the insanitary glass cleaning methods used in licensed premises in the London area; and what steps he will take to see that good standards of cleanliness are maintained in the interests of health.

I have this in mind. Provision for effective methods of glass washing is included in the suggested food hygiene regulations on which interested organisations have been invited to comment.

Leaving aside the possibility of a regulation, can the right hon. and gallant Gentleman say whether there is anything he or the Government can do to raise the standard which at present leads to such things as glasses being washed in rather beery water?

Proposals have been put to all the people concerned and they have been asked to let me know by 15th March—today—what their views on these suggestions are. In regard to the enforcement of these things, the Bill in another place—the Foods and Drugs (Amendment) Bill—deals with powers and regulations.

Will the right hon. and gallant Gentleman look into the question of the cleanliness of what is normally put into these glasses?

Fishing Industry (Containers)

asked the Minister of Food if he is aware of the discontent among fish merchants in the fishing ports at his action in ordering, without prior notice to the industry, the abrogation, as from 30th June, 1954, of the Returnable Containers Order; and if he will take steps to rectify this and so obviate the loss and confusion thereby caused.

The hon. and learned Member is no doubt referring to the White Fish Authority (Returnable Containers) Regulations, 1953. They expire in normal course, but not until 31st December, 1954. Before then my colleagues and I hope to receive alternative long-term proposals from the Authority.

Whilst thanking the Minister for the first part of that reply, may I ask whether he realises that if the policy which is adumbrated in the Question with regard to the second part is persisted in, it will involve a loss to all concerned, producers, consumers and merchants? Will he rectify that?

I am sure that the hon. and learned Member is aware that there is no unanimity in the trade on this question, and also that the regulation is a temporary one due to war-time conditions. The White Fish Authority is now looking into the whole question of what is to follow the temporary measure, and I hope that it will be in a position to make recommendations very soon.

Questions

Rolls Royce Works (Mr. Chambers)

asked the Minister of Supply whether he will compensate Mr. A. Chambers for loss of earnings consequent upon his removal from employment at the Rolls Royce Works, Hucknall, in consequence of his Department's instructions.

Is the right hon. Gentleman aware that as a result of his decision this man, after working for 13 years at Rolls Royce, was dismissed with only a month's wages, that he has since suffered a loss of earnings of more than £100 a year? While recognising that the duty of the Minister to protect national security, is it not also right that the individual should be protected against the harsh consequences of such a decision? Will not the right hon. Gentleman make an ex gratia payment?

I think the hon. Member recognises that any legal claim Mr. Chambers has lies against the company. Should he feel that the company in terminating his appointment has in any way infringed the terms of his employment, he should address himself directly to it. I am not prepared to make any statement about ex gratia payments. I do not feel that it is for the Government to make ex gratia payments in cases of this kind. That would involve us in the principle that any consequence of Government policy or Government action would require the Government to accept claims for ex gratia payments and this would take us a very long way.

Is the right hon. Gentleman aware that the individual has suffered directly as a result of the action of the Government in this case? There is no doubt about the facts, and the firm had no alternative in the circumstances. The Minister must take responsibility in order to be prepared to help.

I am exceedingly sorry if the individual in this case has suffered. He has in fact found another suitable job—I understand it is somewhat less highly paid than the previous one. I should point out that this power to instruct a firm to deny an individual access to secret information has been part of the standard form of Government contracts since before the war. This power has been used seven times by the Ministry of Supply since the war—three times by myself and four times by my predecessor in the late Government. I am following exactly the lines of the previous Minister.

Does the right hon. Gentleman realise that what has taken place is strictly analogous to what would have taken place if this gentleman had been a civil servant employed in a Government Department, with the difference that if he had been such a civil servant he would have had some rights to be heard before the removal took place and would have been removed to other employment at comparable rates of pay? Is it fair to treat a man differently solely because he did not happen to be in direct Government employment?

I am not going to state exactly what are the arrangements for civil servants, which would take us a long way from the Question. The procedure in dealing with cases of this kind which occur in outside industry was laid down by the late Government after full consultation with the trade unions. I believe that in the rare cases where it has to be applied it works fairly and smoothly.

Is my right hon. Friend aware that in 1945, due to political prejudice, the Socialists of South Croydon sacked me and I am still awaiting compensation?

In view of the unsatisfactory nature of the reply of the Minister, I beg to give notice that I shall take an early opportunity of raising the matter on the Adjournment.

Pensions and National Insurance

Retirement Pensions

asked the Minister of Pensions and National Insurance if he is aware that with another increase in the household budget, caused by the increase in the price of tea and coal, old-age pensioners who are already finding it difficult to make ends meet, will now have further burdens; and what action he intends to take on behalf of old-age pensioners to meet this increase in the cost of living.

There has been no appreciable rise in the Interim Index of Retail Prices since retirement pensions were last increased. Rises in the price of some commodities have been offset by a fall in the price of others.

Is the Minister aware that the rises to which he referred concerned the only items which old-age pensioners are able to purchase—foodstuffs? The increase of prices of commodities now taking place—as any housewife, or any hon. Member who is prepared to go into the budget of old-age pensioners knows—are such that they cannot afford them. Will the right hon. Gentleman make representations to the Chancellor of the Exchequer to do something in the forthcoming Budget for these poor old people, who really are suffering?

As the hon. Member knows, there has been a two-point rise in the index since the retirement pensions were raised in June, 1952. It is not possible to found a case for increased pensions on changes in individual prices which take place from time to time.

37 and 38.

asked the Minister of Pensions and National Insurance (1) the estimated cost per annum of providing an extra pension of £1 per week to retirement pensioners who have attained the age of 75 years; and what would be the approximate saving in National Assistance payments;

(2) the estimated cost per annum of providing an additional pension of 10s. per week to retirement pensioners who have reached the age of 75 years; and what would be the approximate saving in National Insurance payments.

An increase of £1 a week for retirement pensioners who had reached the age of 75 would cost about £64 million a year now, rising to nearly £150 million in 25 years' time. The saving on National Assistance payments would at present be about £12 million a year. An increase of 10s. a week would cost half these amounts, and the saving on National Assistance payments would at present be about £9 million a year.

Will the Minister study that last figure for a 10s. increase for people over 75, as it seems less frightening than some figures which he has quoted on previous occasions?

I will certainly study the matter, but I remind my hon. Friend that, broadly speaking, women pensioners expect to receive their benefits five years earlier than men, and I doubt whether it would be possible to circumscribe a concession within the limits of the figures I have given.

National Insurance Scheme (Finance)

asked the Minister of Pensions and National Insurance if he is considering the coming deficit in National Insurance finance; and what urgent steps he proposes to take to remedy the matter.

This matter is very much under consideration in connection with the forthcoming review of the National Insurance Scheme. I do not think I can anticipate the results of that review or the report of the Phillips Committee, which is considering the economic and financial problems involved in providing for old age.

Has my right hon. Friend studied three articles by Lord Beveridge recently published in the "Sunday Times" which show that the Welfare State is "in the red"? Does he not realise that a comprehensive Welfare State is ruining not only the finances of the country but also the character of the people? Will he ask the Chancellor of the Exchequer to consider, in the next Budget, reducing this expenditure?

This is, of course, a very difficult and anxious problem, but I would point out to my hon. Friend that things do not always turn out quite as badly as expected and that the National Insurance scheme produced a quite unexpected surplus of £270 million in the first three years of its existence.

Extended Benefits (Mineworkers)

42, 43 and 44.

asked the Minister of Pensions and National Insurance (1) how many mineworkers on extended benefit on 9th February, 1954, are not now receiving unemployment benefit or National Assistance, but are still registering for employment; and what is the number drawing extended benefit on 9th February, 1954, who have since obtained employment;

(2) how many mineworkers, who were on extended benefit on 9th February, 1954, have since deceased; how many of those on extended benefit then are now receiving National Assistance; how many are on retirement pension; and how many are still drawing unemployment insurance benefit;

(3) how many mineworkers who were receiving extended benefit on 9th February, 1954, have since then had their total income increased; and how many have had their total income reduced.

The National Insurance Act passed in 1946 expressly limited extended benefit to a period of five years from the appointed day. It therefore came to an end on 4th July, 1953, and there were no men on extended benefit on the date mentioned by the hon. Member.

Can the right hon. Gentleman give me a corresponding figure not only for the date I included, 9th February, 1954, but also for 4th July, 1953? May I at the same time say that, as he is answering all three Questions together, I find his reply rather inadequate.

I am most anxious to help the hon. Lady with any information which is reasonably at my disposal, but her Question related to a date some seven months after extended benefit came to an end, and I therefore cannot give her any particulars which would be of any help to her. I should be pleased to furnish her with any information at my disposal, but I cannot pick out coal miners as a class from those who were receiving extended benefit on 4th July, 1953, which is the last date on which anybody could receive extended benefit.

Is not the right hon. Gentleman aware that his action in suspending Section 62 of the Act has caused unjustifiable and unwarrantable hardship to people who do not deserve it?

In the first place, it was not my action; it was the result of legislation passed by the preceding Government. In the second place, I deny that any hardship has resulted from the expiry of Section 62.

The right hon. Gentleman had power as Minister of Pensions and National Insurance to extend the operation of that Section. In face of the representations made him before he took action, why did he not extend it?

Questions

British Electricity Authority (Fuel Consumption)

asked the Minister of Fuel and Power if he will inform the House what was the increase, expressed as a percentage, of coal and oil, respectively, used by the British Electricity Authority and in the North of Scotland Hydro-Electric Board in January, 1954, over January, 1953.

The Parliamentary Secretary to the Ministry of Fuel and Power
(Mr. L. W. Joynson-Hicks)

3·7 per cent, in coal and 56 per cent, in oil.

Can my hon. Friend account for the great proportional increase in the use of oil during this period, compared with the increase in the use of coal, which is the traditional source of fuel for the production of electricity?

I think it is because of the small quantity of oil consumed. The total amount of oil used by the power stations is less than 1 per cent, of their total fuel consumption.

Mining Subsidence (Government Grants)

asked the Minister of Fuel and Power what sums he has paid out in each year to the nearest available date in compensation under the Coal-Mining (Subsidence) Act, 1950, giving separate figures for South Wales and the United Kingdom, respectively.

Government grants to the National Coal Board towards the cost of compensation throughout the United Kingdom totalled £500,000 in 1951–52, £100,000 in 1952–53 and £200,000 in 1953–54. No separate figures for South Wales are available.

Can the Minister inform the House whether the figures under the Coal-Mining (Subsidence) Act are better or worse than the obligations for the same kind of damage inherited by the Coal Board from private coal owners in the past?

In view of the very small sums which the Treasury have had to pay for righting this grave social injustice, will the Government now consider introducing a new Bill to implement the whole of the Turner Committee Report and to get rid of the social injustice which remains?

Arising out of the Minister's first reply, should not it be very easy to obtain a separate figure for Wales? Should not that be one of the figures which could easily be provided for the House?

I will take into consideration what my hon. Friend says, but there is no information on the point available at present.

Paper and Board Imports

asked the Minister of State, Board of Trade, as representing the Minister of Materials, why he permits the importation of manufactured sheet cardboard for use by converters and. At the same time, refuses to allow an adequate importation of the necessary raw materials, in the form of wood pulp, to enable home production of cardboard to be increased.

Home production of board since October last has been the highest ever recorded in any comparable period. Despite this high rate of production, demand cannot be met from home mills alone. Some imports of board must, moreover, be permitted in conformity with our general policy towards the traditional interests of other countries. Imports of both board and woodpulp are restricted for balance of payments reasons.

Is my right hon. Friend aware that the demand for board is very largely due to the rise in the rate of re-housing? Would he not agree that it is reasonable to bring in the raw materials which make the board rather than to import the board?

In general I would agree with my hon. Friend, but my information is that the industry, and particularly those parts of it which are using a reasonable proportion of home-produced materials, is working practically at full production at present. We are watching the position carefully.

Is the Minister aware that this is an ideal industry for the Highlands, using the great timber resources in the Highlands, and that the Government ought to do something to try to get a firm of this kind established in Inverness?

I sympathise with what the right hon. Gentleman has said, and I will bear it in mind.

Would my right hon. Friend bear in mind that Norway, in particular, has a large exportable surplus of board which the exporters in the United Kingdom urgently require in order to package their goods? In view of the dead soft character of the Norwegian currency, could not this matter be reviewed with a view to removing many of the harsh import restrictions imposed two years ago?

I think my hon. Friend will agree that a great many of the harsh import restrictions which had to be imposed have been removed, and we are looking forward very much to the day when it will be possible to remove the balance, but our position is not such as to enable us to do it straight away.

Before the Minister thinks of the needs of Norway, will he have regard to the large quantity of timber available in the North of Scotland, especially since the great storm of a year ago?

That is very much in our minds. I think the hon. and learned Gentleman will agree with me that considerable progress has been made in disposing of fallen timber.

asked the Minister of State, Board of Trade, as representing the Minister of Materials, whether he will make an immediate increase in allocations of imported wood pulp, having regard to the artificially high costs of production and inefficiency caused by the present restrictions and the fact that any imaginary saving in foreign exchange is offset by the failure of home-produced articles to be competitive, under present conditions, in world markets.

No, Sir. I would refer my hon. Friend to the reply given to him on 9th March last. Since last October the weekly average production of paper and board has been higher than in any comparable period since the war, and is also above the pre-war average figure.

Is the Minister aware that despite this rise, which is largely due to technical developments, the position is that the mills in this country are not fully occupied? How much better it would be if more pulp were allowed in? Is he further aware that in the opinion of the trade this is the right moment to raise these restrictions now that there are alternative sources of supply of pulp at a price more or less the same as the Swedish and Norwegian prices?

I think I have already said that production is running at a record level at the present time. I think my hon. Friend is anxious about the position of the export trade, but it is encouraging to note that exports rose between 1952 and 1953 by 40,000 tons; 259,000 tons last year as compared with 219,000 tons the year before.

Post-War Credits

asked the Chancellor of the Exchequer the estimated cost of repaying the value of post-war credits held by widows who are only entitled to a pension of 10s. per week under existing legislation.

I regret there is insufficient information available to make this estimate.

Will the Minister try and find this figure, because it is likely to be so small that it will make the idea feasible?

I cannot comment on that as we have no records as to the pension position of the holders of post-war credits.

Is the Financial Secretary collecting some information about post-war credits to enable the Chancellor of the Exchequer to make

Duty

Source of Revenue

Duty receipts (£000)

1st April, 1952 to 31st January, 1953

1st April, 1953 to 31st January, 1954

Pool Betting Duty

Betting with totalisators on dog racecourses.

5,544

5,262

Bookmakers' Licence Duty.

Bookmakers on dog racecourses

1,601

1,518

Entertainments Duty

Admissions to:

Football

1,025 *

1,390

Horse-racing

975

930

Dog-racing

495

500

Speedway racing

105

75

* Increased rates of duty in force from 13th September, 1952.Increased rates of duty in force from 13th September, 1952.

Scotland

Evidence (Police Methods)

asked the Secretary of State for Scotland if his attention has been drawn to recent views expressed by Her Majesty's Judges in Scotland on police methods of obtaining evidence; and what steps he is taking to circularise chief constables in Scotland on these matters.

I assume that the hon. Member refers to the appeal of John Chalmers against his conviction of

some announcement as to concessions, to which everybody is looking forward?

I do not think I need add to what my right hon. Friend said on this very topic a week or two ago.

Questions

Betting and Entertainments Duties (Receipts)

asked the Chancellor of the Exchequer the amount received from duty on totalisators on dog racecourses, from bookmakers' licence duty on dog racecourses and from Entertainments Duty on football, horse racing, dog racing and speedway racing, respectively, for the period 1st April, 1953, to 31st January, 1954, and for the corresponding period of the previous year.

As the reply consists of a table of figures, I will, with permission, circulate it in the OFFICIAL REPORT.

The following is the reply:

the murder of Peter Stevenson Hastings. I am arranging to send to chief constables a copy of the judgments delivered by the Lord Justice General and the Lord Justice Clerk in this case.

Is the Minister aware that those of us who have been perturbed for a long time at the way the police have been taking evidence from witnesses will be very pleased at the answer?

Aircraft Accident. Singapore

(by Private Notice) asked the Minister of Transport and Civil Aviation whether he would make a statement on the British Overseas Airways Corporation Constellation aircraft which crashed at Singapore on 13th March, 1954.

As the House will know, a B.O.A.C. Constellation aircraft on a scheduled flight from Sydney to London crashed on landing at Kallang Airport, Singapore, on Saturday morning 13th March last. Thirty-one passengers and two members of the crew lost their lives. The surviving seven members of the crew are reported to be uninjured. Two members of the Accidents Investigation Branch of my Ministry left London Airport yesterday morning for Singapore to assist in investigating the causes of the accident. The Chairman of B.O.A.C, Sir Miles Thomas, is also on his way to Singapore.

I am sure that the House will wish to join with me in expressing our deepest sympathy with the relatives of those who lost their lives in this tragic accident.

While thanking the Minister for that statement and for the expression of sympathy to those who have been bereaved, may I ask him whether there is to be a public inquiry and, if so, what form it will take?

Yes, Sir. The initial responsibility for an investigation lies with the Government of Singapore. It will be for this Government to decide whether or not to delegate this responsibility to a Ministry of Transport and Civil Aviation Inspector. After there has been this initial inquiry, it will have to be decided whether there is cause for a public inquiry as well. It may be in this particular case that the initial inquiry will establish the cause of the accident without need for a public investigation.

Sudan (Situation)

I ask your permission, Mr. Speaker, and that of the House, to make a statement on the events of 1st March in the Sudan.

During the few days before that date a large number of supporters of independence for the Sudan had gathered in Khartoum. The emotional temperature had been raised by the ups and downs in Cairo in the previous week, but all was orderly until General Neguib's arrival, with a large following transported in four aircraft. He received a somewhat uncontrolled welcome at the Airport from National Unity Party supporters and from Egyptian officers of the battalion stationed in Khartoum. He was taken by car along a circuitous route to the Palace where a small crowd gathered at the West Gate. Led by a cheer leader standing on the gate they shouted in favour of Neguib and some got over the outer wall near the servants' quarters. After an appropriate time the police pushed this crowd away from the area of the Palace and it began to disperse.

Just at that moment the Independence Party procession which had intended to demonstrate along the road from the Airport but had been thwarted by the car taking a different way, came down Palace Road in an orderly manner marching about 10 abreast. They were shouting out independence slogans. They swung left into Kitchener Square and there came into collision with the police. It soon became apparent that a number of the demonstrators were carrying weapons. There was a confused melee in which the police used their batons. Tear gas was employed, and then the police opened fire.

At an early stage in the disturbance the British Police Commandant, Mr. McGuigan, was killed and the Ansari second-in-command of the police was fatally wounded. They were both fine officers of whom everyone spoke very highly.

A number of the demonstrators then made for the Palace Gate. I was told that one or two were shot climbing over the railings and that several who got over the Palace wall and attacked the Governor-General's personal guard, were shot in the grounds.

The total casualties are difficult to estimate, but I understand that 12 police and at least 20 of the demonstrators were killed, and there was a large number injured.

My right hon. Friend told the House on 3rd March of the measures taken by the Governor-General and the Council of Ministers. The adjourned opening of Parliament on 10th March passed off uneventfully and the state of emergency has now been lifted.

There are certain aspects of the situation in the Sudan on which I should like to comment. The Sudan has been governed in the past with very small security and police forces. Security has in fact been based on the character and standing of the individual officers of the Administration. We now have a position in which there is strong feeling between Government and Opposition in which sectarianism plays a large part. I fear it will not take much to cause deterioration in law and order both in the North and South Sudan. This is a situation of some danger which all should bear in mind.

I saw the Prime Minister and other Members of the Council of Ministers and some Opposition leaders. I suggested that the need was to heal rather than to inflame the wounds of 1st March. This would require courage and statesmanship. Our hope must be that the Government and Opposition will seek to co-operate in working their parliamentary institutions, that the balance on the Governor-General's Commission between Government and Opposition will be maintained, and that the position of officials serving the Administration will be upheld.

We cannot understand why the Egyptian Government do not perceive that if by continued interference they whip up feelings in the Sudan, and cause a breakdown of law and order, Egypt herself will lose as much as anyone. Our wish that there should be friendship between Egypt and the Sudan is unaltered. They have much in common and their great river to share.

May I now say a word about the position of British officials? During this transitional period good administration is essential. Many of the technical branches will be needed long after self-determination. Every Sudanese of every party recognises this fact in private. The real problem for the Sudanese is not how to get rid of the British but how to ensure conditions under which they and other technical experts from abroad will be willing to serve in the Sudan. If the Sudan is to attract the men and women required for her development there must be conditions of law and order, publicly expressed confidence by Ministers in their officials, and a degree of efficiency in general administration adequate for the technical experts to carry out their work.

The events of 1st March were a tragic beginning for parliamentary institutions in the Sudan. A freely-elected Assembly has now taken over responsibility for a large country in which law and order have hitherto been preserved with small security forces. They have taken over a prosperous economy, a small public debt and substantial reserves and ambitious development plans are under way. The Sudan has, I believe, the chance of a great future. How it can be worked out will depend upon the statesmanship of her own leaders and a sense of responsibility on the part of those governments that have a special position in the Sudan. We, for our part, will continue to try to work the Agreement of 1953. We will do our utmost to see that the Sudan, which has made so much progress in the past 55 years, shall not, while we have any responsibility, drift into a condition of civil disturbance which must lead to chaos.

We on this side of the House share the hopes of the right hon. and learned Gentleman as to the future of the Sudan and deplore that there should be such an inauspicious beginning, and particularly we would agree in deploring the interference of the Egyptian Government. May I ask the right hon. and learned Gentleman what is the position of the British serving in the Sudan, and what is the position of the dependants of Mr. McGuigan? Is there to be any compensation by the Sudanese Government, or have Her Majesty's Government any responsibility in this matter?

With regard to the last part of the question, that is a matter at present for the Sudanese Government.

Will the Minister of State draw to the attention of the Sudanese authorities the fact that if the British experts who are there now helping the Sudanese Government should find it necessary, for their safety or for other reasons, to come away, there will be many openings for them in United Nations technical assistance work in other countries?

I made the position quite clear to those Ministers with whom I discussed the matter that, both in the British Colonial Service and in these other fields where technical experts are so much required, there is abundant alternative employment for these people.

Could my right hon. and learned Friend add anything to the statement he has already made about compensation to the members of the Sudan Civil Service?

That is a matter which I discussed with representatives of the officials in the Sudan, and it is a matter which is under discussion at the present time. I may be able to give my hon. Friend more information upon it later.

Could the right hon. and learned Gentleman say whether it was indicated to him at all in the discussions what tempo of Sudanisation is contemplated?

In accordance with the terms of the agreement, of course, Sudanisation of certain services has to be completed within three years. I think it is important that it should be done in an orderly manner.

New Member Sworn

James Edward Ramsden, esquire, for Harrogate.

Orders of the Day

Town and Country Planning Bill

Order for Second Reading read.

3.38 p.m.

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

Although, Mr. Speaker, I cannot claim that this Bill is self-explanatory, nevertheless, its purpose is plain enough. It is to complete the process begun nearly 16 months ago. The Bill gives effect to the proposals of the Government for amendment of the financial provisions of the Town and Country Planning Act, 1947. These proposals were originally set out in a White Paper which was publshed in November, 1952. An interim Act, the House may recall, was passed last Session to carry through the first stage of the Amendment—the pulling down of the old financial provisions. That Act abolished development charge and suspended the great pay-out of £300 million which was due to take place before 1st July, 1953.

Now, therefore, we come to the second stage—the building up of new provisions. Now we have to substitute for the great pay-out a new system of compensation. This will still be based upon the claims admitted under the 1947 Act, but it will be paid only as and when realisation of the 1947 development value of land is prevented, whether through compulsory purchase for some public need or through refusal of permission to develop. That is the purpose of this Bill.

The Bill follows the White Paper closely and the general principles on which it is founded have therefore already been considered by the House in the debate on the Second Reading of the interim Bill. For that reason I do not propose to discuss those principles today. I shall confine myself—and I fear that that will take long enough—to a general explanation of the background and the scope of the Bill, and draw attention to some of the more important provisions.

This Bill is essentially a piece of machinery intended to support and sustain the great planning Measure of 1947, and that is all that it is. The Government did not think that the financial machinery provided in the Act of 1947 would long hold together. We did not think that the development charge, which was the lynch-pin of that machinery, could last. We came to the conclusion that the benefits of the planning provisions of the 1947 Act could be secured without the evil effects of development charge. After all, we must remember that the purpose of planning is not to stop development; it is to promote it in the right places and at the right time. So we got rid of development charge—it passed unlamented—and, as for compensation, we decided not to pay it all out in haste lest we repented at leisure. We undertook to provide a system of pay-as-you-go, and here it is.

I am very sorry that, despite the simplicity of the objective, the Bill is so long and so complicated. In places, I must admit, it is difficult to follow, and for this I must apologise to the House. In my innocence—and I am still a very innocent Minister, though getting less so every day—I thought that to turn a scheme for paying a lot of claims all at once into a scheme for paying them only as and when occasion arises, seemed a fairly straightforward idea. But I have been somewhat disillusioned. Long and complicated as this Bill is, I must tell the House that it might have been a good deal longer and a great deal more complicated. For if we had tried to cover every possible case, to produce precisely the right result in every form of circumstance, we should have produced quite a lot more Clauses. We have, therefore, had to sacrifice a number of refinements, and I hope that hon. Members will accept the necessity for the sacrifice.

The awkward fact is that under the 1947 Act claims became a species of personal property. Let us consider how they have come into being. Up to 1st July, 1948, development value and land were held together by the same owner. They were inseparable from one another. After 1st July, 1948, development value, which was theoretically acquired in total by the State, was represented, so far as the individual was concerned, by claims upon the £300 million fund. Therefore, the claim became a separate entity, a form of property which could be sold and assigned apart from the land itself.

The essence of the present scheme is that the claims in future are to attach to the land, and it is in effecting this transition that much of the complication has arisen. Furthermore, our first obligation is towards those claim holders who have already suffered injury; claim holders who have paid development charge; claim holders who have sold their land, sometimes voluntarily, sometimes under compulsion, for something less than its full value on the expectation of this payment; claim holders, also, who have already been refused permission to develop their land.

Here I must emphasise that there will only be payment where a claim was established. I mention this because I want to make it clear that everybody who paid development charge will not automatically be paid. Payment is to be made on account of development charge in certain cases. It will be paid to those who hold a claim or paid a high price for land without taking over the claim and have since paid charge. So the Bill has to provide for settling accounts under two different systems, as well as for effecting a transition from one system to the other. Hence the considerable complication.

I think we are all more or less agreed on the real purpose which we are trying to serve and which this Bill is intended to serve, that is, to provide a system of compensation which will enable the planning authorities to exercise control without fear of the cost, but, at the same time, a system free of the difficulties associated with development charge. I therefore believe I shall have the assistance of the House in bringing this Measure to the Statute Book, for it is really very necessary that it should be done at the earliest possible date.

As I said just now, we have an obligation towards those who have already suffered injury, and some of them have waited for many years. Some are owed very large sums, and some, I know, are in serious financial difficulties. All were led to expect that before 1st July, 1953, they would receive payment, some payment, and it is a matter of very great regret to the Government that there should have been this delay. I believe that everyone agrees that the delay has been inevitable since nearly everyone wanted to make a change by abolishing development charge. But everyone must feel that we should do our best now, honestly and in fairness, to hasten the payments where they are due.

Now let us go back to the Act of 1947. That Act established, for the first time, a thorough-going control over the use of land. Since it came into operation no one has been able to develop land, to build, to win minerals, to change the use, or to do any of the things included in that portmanteau word "develop," without first getting the permission of the local planning authority or, in the case of an appeal, of the Minister of the day. This control is to be maintained unaltered. I wish to emphasise that particularly so far as the local planning authorities are concerned. Their position in controlling development is unchanged.

They did not have to pay compensation under the 1947 Act when they refused permission for development, unless they were interfering with existing buildings or existing uses, and they will not have to pay compensation now. Since 1948, they have been free to make their plans and to deal with applications according only to their judgment of the right use of land. They will remain equally free in the future. I will say something later on about the position of the Minister.

Fears were expressed during the debate on the earlier Bill that when compensation had to be paid by the Minister, or by the Government, as and when permission to develop was refused, planning would, in some way or other, be sacrificed to economy or even to parsimony. I will return to that later, and I hope I shall be able to satisfy the House that there is nothing to fear on this point. For the moment I am concerned only with the point that the power to control the use of land remains absolutely unchanged.

At this point perhaps I may be allowed a slight digression. The Bill before the House contains no amendments of the planning provisions of the 1947 Act. It deals only with the financial provisions. Except to make some minor and consequential amendments, it does not touch Parts II, III or IV of that Act, the parts which provide for the making of development plans, for the control of development and for the acquisition and disposal of land for planning purposes.

I have no doubt that hon. Members may have their ideas about these Parts of the Act, and after six years' experience they may think that there are amendments which ought to be made. My own Department has a list of amendments which ought to be made, and a second list of amendments which might be made and which some people think ought to be made. The representatives of local authorities have, I think, their lists compiled.

Such a Measure as the Act of 1947, which set up an entirely new system of development plans and controls, and an entirely new method of acquisition, is bound to need amendment as experience is gained. But it is not possible to amend the general planning provisions of the 1947 Act in this Bill. If we were to do that we should get into a hopeless tangle. This Bill, therefore, is confined to amendment of the financial provisions. I am sure that we cannot deal with more than this if we are to pass the Bill this Session.

Within the next two or three years the Government of the day may well find it necessary to introduce a general amending Bill; not, as far as I can see at present, to make any fundamental changes, but perhaps to put right some difficulties and, if it were possible, to simplify the procedure. I hope, therefore, that hon. Members will be able to restrain themselves in putting forward ideas about the non-financial Parts of the Act on this occasion. I want to make it clear that I shall be happy to receive their suggestions for future amendments if they care to let me have them; because I am sure that some degree of amendment will be required as the years pass.

Coming back once more to the background of the Bill, development charge has gone, and, development charge having gone, the case for compensation for loss of development value arises now only if development is actually prevented through the refusal or restriction of permission or through compulsory acquisition. If I may put it in this way, owners of land now fall, roughly speaking, into one of two categories. Either they are prevented from realising the development value of their land as a result of a refusal of planning permission or acquisition by a public authority, in which case the intention is that they should be paid compensation on the basis of the agreed claim, or alternatively they are free to develop their land or to sell it for development at market value. In that latter case there is no reason why they should be paid anything by the State.

That is why we have had to suspend the great £300 million pay out, and that is why, whatever the inconveniences, we have had to provide for paying compensation only as and when damage is done. Nobody wanted to keep the development charge, and it is perhaps worth remarking that since it has been abolished there has been a very substantial increase in private development. Of course, this is not due only to its abolition, but it is largely due to it. I emphasise that the Government's chief anxiety has been about the effect of development charge on development.

When I introduced, as I did 18 months ago, the Bill to abolish development charge, I did not find any great chorus of protest from Members in any part of the House. Everybody seemed to think that it was a good thing to abolish the development charge, and I think that they were right. Members opposite really made no attempt to defend it either in theory or in practice, but I must also say, quite apart from the development charge, that it would have been regrettable to make an inflationary payment of £300 million far ahead of the time when the money would be needed to do the job of planning. Moreover, it would have been payment to a great number of people who had no intention of using their development rights. If, therefore, we do not have the great pay out, what is the answer? I say that there is only one answer—"pay as you go"—and hence this Bill.

It would have been all very much simpler, of course, if the Government had decided to pay compensation according to development value at the time of the refusal—to scrap the claims, to get rid of the Domesday Book, as I called it on the last occasion, and to look at the position when the adverse decision is made, and then to pay the full amount of current depreciation in all cases. I do not think that many people wanted that either, least of all those who believe in planning, and nobody really seriously demanded it, for it would ruin planning.

It would mean that compensation for planning restrictions had always to be paid at the peak value, and that it would have to be paid again and again. So the Government decided to stand on the claims made and established under the 1947 Act. These claims, taken now at their full face value, are to set the limit to the compensation that is to be paid, and that really is what most of the Bill is about.

There is one awkward fact about the claims which, whether we proceed under the Bill or under the previous Act, must be faced. It is nothing new, and it equally applies to my scheme and to the old scheme. It is the fact that some people, whose land had development value in 1947, failed, for one reason or another, to claim. I am quite unable to estimate how many of these there may be, though on all that I have seen I believe that almost all the sums involved are small. Many, perhaps the majority—I do not know—failures to claim do not matter now, since either there will be no proposal to develop the land, in which case there is no reason why they should be paid, or else there will be a proposal which is made and permission is given, and then there is no reason—

I am dealing with the question of people who did not claim. If the local authority requires the land then the claim will be paid. I am dealing only with people who did not claim.

I am dealing only with land for which, for one reason or another, no claim has been made. It is very difficult to estimate just what is the number of claims which ought to have been made but were not made. There will be some hard cases. It is only right that I should tell the House that I am afraid that the Bill does nothing for these people. It may seem to be a hard doctrine, but I think that on this matter we must be hard, for the essence of the settlement is that compensation is to be paid for development value as claimed and as established in 1948. We must maintain this position.

We must not let a system of "pay as you go" turn into a system of "value as you go." That would be very dangerous to planning. We must keep a sense of proportion, in this matter. After all, immense publicity was given to the need to put in claims. The Central Land Board, and its chairman in particular, did everything possible to make sure that everyone knew about the need to make a claim and understood it. They took a lot of trouble, spent a lot of money and did a great deal of publicity work.

Some people failed to claim who knew all about it. They may have decided that it was not worth while or perhaps that there was some kind of a catch in it. I do not think that the Government should start coming to the assistance of people who find that they have backed the wrong horse. I realise, however, that some people—there must a few—for one reason or another missed hearing about it, or never understood that it could apply to them and, therefore, there will appear some hard cases. But I do not think that we could reopen the right to claim. It really would not be practicable to do so, nor do I believe that it would be effective even if it were practicable. It would create an appalling amount of work for a very small and rather haphazard result. So I fear that on this point we must stand firm.

The House will appreciate that nothing which is done or not done in the Bill makes the position of people who failed to claim any worse than if the original scheme had gone through. On the contrary, in every case—I repeat this—where they are allowed to develop their land they are better off because they have now no longer to pay the development charge.

We are six years from the time when claims should have been made, and we have had six years of planning control without compensation and of land being bought compulsorily at existing use value. During these six years there has been remarkably little complaint on behalf of people who failed to claim. Therefore, I honestly think that the problem is of small dimensions, and I am sure that we must stick to the 1947 Act and to paying compensation only on the basis of established claims. I hope that the House in general will agree with this view.

Now I propose to turn to the different Parts of the Bill and to describe as briefly as I can what each Part does, drawing the attention of the House to any provisions of particular importance. Before I do so, however, I want to say something about what has, I think, been one of the main criticisms of our amendment of the financial provisions of the 1947 Act. I think it unfounded, but I believe it to have been widely expressed.

There is a fear that the principle of "pay as you go" may mean that short-term finance or even economy will dominate the planning. If I thought that I should not have introduced the scheme. However, I must frankly admit that that is theoretically possible. Since the money has to be found as we go we have to pay as we go, and a Government could, if it wanted to, bring the whole thing to ruin by refusing to propose the necessary money supplies, or a House of Commons could do so by refusing to vote the money.

Not so very much year by year, but I shall come to that.

I admit that, theoretically, this is inherent in paying as we go. Nevertheless, I do not think that we need fear that any Government will fail to ask for it or that any House of Commons will refuse to vote the supplies needed to finance compensation, always provided that we stick to the principle of paying only on established claims and so maintain a strict hold over the money that will be needed.

I heard a right hon. Gentleman opposite say, "More money." It will not be more than £300 million. That cannot be, because it can never be more than the claims, and it will certainly be infinitely less money even after some years so long as we stick to the principle of paying only on established claims. The Government certainly have no intention whatever of subordinating the proper use of land to the need for budgetary economies.

I invite the attention of the House to Clause 66 of the Bill. It will be seen that the money that we need to pay for what has happened over the last six years—to meet the established claims of those who have paid development charge, or those who have sold land below its full value, or those who have suffered planning restrictions—will be paid out of the Consolidated Fund.

There will, of course, be a heavy bill for the last six years because it is in those six years that there has been much restriction. It will be seen from the Financial and Explanatory Memorandum that we have estimated that £30 million is approximately the sum due to claim holders who have paid charge and to those who have sold land below full value. What is due to those who have suffered planning restrictions we can only estimate—indeed, we can hardly estimate; we can only guess—but it will be a very large sum because this is related to the great planning decisions which have been made in the last six years.

During these years there has been refusal to allow building on the green belts, on farm lands and on land of great amenity value where there was often very high building value. These decisions must now be paid for, and the money will be forthcoming from the Consolidated Fund. These are debts which have already been incurred, and, therefore, they can properly, in accordance with our financial procedure, be met in this way.

For the future we must, again according to our normal financial procedure, finance administration out of the Vote; and no Parliament can effectively bind its successors as to the amount that they will vote. Nor, indeed, am I able to estimate how much money planning compensation will require from year to year after we have cleared off the back-log, but I think that it will be very small in terms of modern finance and modern Budgets, probably £30 million plus another large sum for the back-log. It will be about a few million pounds a year.

The House will notice that in subsection (10) of Clause 66 there is a rather unusual provision. Although in accordance with the long established financial procedure of Parliament, to which we cannot make any change, we must vote each year the sums which are currently required, yet we are asking Parliament in this Clause to make a declaration of its firm intentions. Thus, if we cannot legally bind future Parliaments, we can at least point the way.

The Minister has, under the Clause, to give an account of his stewardship. We make it as clear as we can that we are ready to find £30 million for compensation payments within a period of five years. We go further than that and indicate that we are ready to find it in a shorter period should it be required. All that is needed then is that the Minister should report the position to Parliament and ask for further supplies.

We do not know the rate at which applications will be made and the rate at which they will be refused and what will prove to be the compensation which is necessary. So far as we are able to make estimates, it is very unlikely, we think, that more than £30 million will be required in the five years. At any rate, this is a demonstration—it is intended as such—to future Parliaments that we mean to take the matter seriously. We shall, of course, not be at all dismayed if we are wrong and have to use up the money more quickly, for that will mean that the work needs to be done on a more extensive scale. The purpose of the Clause is to make it as clear as possible that Parliament wants the job done and that money is not to be stinted on it.

It is not my intention, nor is it the intention of my right hon. Friend the Chancellor of the Exchequer, that decisions about the right use of land should be governed by the cost of compensation. Provided that we hold the maximum compensation payable to the basis of established claims, we are content—nay, we are glad—to pay what is necessary as it falls due. We recognise that planning decisions are not things that can be put off, like other economies, until better times come, because once a wrong decision is made, the land is gone for ever.

The Bill contains a provision, which I must explain to the House, in Clause 29 enabling the Minister to review a planning decision when compensation is claimed—

—and, if he sees fit, to alter the decision and allow the development after all. The Minister has that power under the ordinary appeals any way, and he is using such power all the time.

There is nothing sinister in this. It is obviously necessary that before he pays compensation the Minister should be satisfied that he is not in complete disagreement with the decision which was made. I do not expect that the Minister will find himself in disagreement with local planning authorities very often in cases in which no appeal has been made.

I certainly should not propose to alter a decision on getting an application for compensation unless I felt that there was something seriously wrong. But that could happen, and the question of money and the amount to be paid has a certain relevance. If there is very little money in it and the owner of the land has not appealed against the decision, there is not likely to be any reason for the Minister to wish to alter the decision. But if there is a great deal of money in it and the Minister thinks that the decision is bad in itself, he has a duty to review it.

I do not want the House to think that because we have undertaken that planning should not be governed by compensation I think that neither planning authorities nor the Minister should pay any attention to that at all. Of course they should. Perhaps it was one of the weaknesses of the 1947 Act that it invited authorities to ignore the value of land. Value is often an indication of utility—I do not say always, but often—and planning ought to secure that the best use—although not necessarily the most profitable use—is made of land.

I will give the House an example of what I mean. There was a site by a roadside, and a firm of brewers wished to build a public house upon it, while the local authority wished to plant geraniums upon it. The compensation due for geraniums was £12,000. I realise that the hon. Member for Ealing, North (Mr. J. Hudson) would have been a partisan of the geraniums, but I think that most people would feel that, while geraniums are all very well on a waste bit of land or in the middle of a roundabout, they are not really worth £12,000 worth of planning compensation. Therefore, this is a case which indicates that, except upon the basis of a purely teetotal approach, the wrong use was proposed for that land.

The Government are prepared to pay millions of pounds to preserve agricultural land, green belt land, or land which is important for recreation or for amenity and for all the other things upon which we are all agreed, but the object ought to be worth the money, and I say this not for the sake of saving money but to make sure that we are providing for the right use of the land.

I recognise that the extreme theoretical planners may regard what I have said as a piece of backsliding from the rigid doctrine such as might have been preached by an extreme doctrinaire—and I see some of them over there—but, surely, it is necessary to combine planning with common sense, and if we do not, I fear that there will be a reaction against planning.

After saying that, I come now to some account of the Bill before the House. Right at the outset, in Clause 1, we establish the principle that all payments made under the Bill are to be made by reference to claims made and established under the 1947 Act. I have already discussed this at some length, and will say no more about it now. For the rest, Part I deals with what we in the Department somewhat inelegantly term the problem of "unscrambling." It provides for payments to be made by the Central Land Board to people holding claims—and, in certain residual cases, to people who do not hold claims—who have already suffered damage under the 1947 Act. If I am asked what I mean by "residual cases," I will not attempt a precise definition, but will give an example.

Suppose a man had a piece of land of which the restricted value was £100, and that he had an admitted claim on it for £1,000. Between 1948 and the date of the White Paper, he sold the land, not for £100 or for £1,100, but for £500, and kept the claim. He therefore has, in fact, received the restricted value plus £400 on account of his development value from the purchaser of the land, and he has still the claim for £1,000.

Now let us look at the position of the man who paid the money for that land. He has paid £500 for the restricted value which was £100, and he has had to pay development charge of £1,000; that is, the full development value. What the Bill provides is that the man who sold the land shall get only £600, because he has already had £500 of his £1,100 value. The man who bought the land will get the difference towards the development charge he has paid. All this is set out in Paragraph 50 in the White Paper.

The Bill, however, goes a little further than the White Paper, and provides that this system shall apply not only where the purchaser paid development charge, but where his land was compulsorily acquired at existing use value. This part of the Bill does not deal with cases of damage due to a refusal of permission for development, which are dealt with in Part V.

There are two classic cases—I have dealt with the "residual" case—for Part I payment, both of which were promised in the White Paper—the person who holds a claim and who paid development charge (Case A in the Bill) and the person who holds a claim and sold land below its full value (Case B). But there are a number of variants of the latter case, and the Bill accordingly empowers the Central Land Board to make payments analogous to Case B payments.

One or two other cases for Part I payments, which do not fall into any general classification, are set out in the Bill, and I hope that, in one way or another, we have enabled the Central Land Board to cover all that ought in equity to be met. I will not trouble the House with Cases C and D, which are rather special cases in which claims are separated from the land through the land being passed by gift, or in which the claim itself is passed either by gift or by purchase. If there are any points or difficulties on this matter, my right hon. and learned Friend the Attorney-General will deal with them when he winds up the debate.

Provision is made for appeal to the Lands Tribunal against any decisions of the Board. We have provided for an appeal, and I think that is right. The House will have noticed that interest is to be added to claim payments at the rate of 3½ per cent, from the date when the 1947 Act came into operation—that is, the date on which, in theory, all development in land was acquired by the State—to the date on which the payment is made, or to 30th June, 1955, if that is earlier. The substance of this was promised in the White Paper, and it follows a provision in the 1947 Act itself. [ Interruption. ] There are certain cases of a special kind affecting whoever pays this money out—the Government, the Central Land Board or the local authority, as the case may be.

The great question, of course, it when will these payments, and the payments under Part V for planning restrictions, be made. The Bill is to come into operation on a day to be appointed by order, and, before it can come into operation, various sets of regulations have to be made to provide for the splitting up of claims where land has been split up, to apply the provisions to types of cases which are not dealt with in detail in the Bill—and these are particularly cases involving minerals—to settle how people are to apply for compensation under the different Parts of the Bill, and to provide for appeals to the Lands Tribunal from the Central Land Board and various other matters.

We shall endeavour to have the most urgently needed of the regulations ready as soon as the Bill is passed, and to invite applications, and especially Part I applications, which take precedence of all others, immediately after the passing of the Bill. If the Bill should, as I hope, receive the Royal Assent before the summer holidays, the Central Land Board may be able to begin making payments before the end of this year; but, if it does not receive the Royal Assent until the autumn, I think the Board will have to postpone them until early next year. We shall certainly do our best, because of the long time which people have had to wait.

In Part II, we come to the payments to be made for future planning restrictions. Later, Part V will apply these provisions, with necessary modifications, to planning restrictions which have been imposed over the past six years, so that what we shall be considering in this Part of the Bill is the whole subject of compensation for planning restrictions. The compensation to be paid will depend on the "unexpended balance of established development value" attaching to the land. What that really means is this. The unexpended balance of established development value is what is left after all previous claims upon it have been met, and runs with the land in the future until it is exhausted by payments made on future planning decisions, compulsory purchase or anything of that kind.

May I give an example, as I tried to do in the other case? Let us suppose that a claim is made upon a piece of land valued at £1,000. Some time after the 1947 Act came into force there was a development, upon which a development charge was paid but the development did not realise the full development value. Therefore, the charge was only £600. Under Part I, the applicant will get an "unscrambling" payment of £600. The other £400 is the unexpended balance.

This will remain attached to the land and can be used for future payments if, for instance, there was a refusal of planning permission, or a compulsory purchase. It can never be more than the total claim and is the ceiling. If it is called upon, then it has to be paid. If it is not called upon the money is returned to the Exchequer and the remaining money is not required.

I do not think it is-very confusing. It merely requires the exercise of that intellectual effort of which: I know the hon. Gentleman is capable. To the unexpended balance has to be added the supplement of one-seventh; that is in lieu of interest at 3½ per cent, for seven years. The interest can never be more than the total for seven years, however late the compensation is paid. If the restrictions happens before 1955, it will be paid up to the date when the restriction on development comes into operation. The supplement is expressed as one-seventh because it is a simple way of doing it and avoids. Income Tax complications.

The Clauses in this part of the Bill which will excite interest are Clauses 23 and 24. They provide that in certain cases compensation will be excluded. I think there is a warning of this approach in the White Paper, which says, in paragraph 35, that the Government

My hon. Friend the Member for Hertford (Mr. Walker-Smith), whom I see in his place, suggested in the debate on the Second Reading of the interim Bill of 1953, that restrictions for which compensation should be excluded should be those which depended upon considerations I am not quite sure what that means. It is a very wide test, because byelaws can be made about almost anything, from bathchairs to bathing huts and from burial grounds to buildings. My list does not seek to go quite so wide, but I hope that we shall have my hon. Friend's support for it.

In the line we have taken we have largely based ourselves on the Act of 1932, which really worked quite well where it excluded compensation; it was where it did not exclude compensation that it ran into trouble. The line we have taken is to set out a number of types of restriction commonly in planning use which have the effect of limiting, controlling or postponing the development that may take place, but not, generally speaking, of preventing building development altogether. The only exception to this is where development would be dangerous or likely to involve the community in heavy expenditure, such as where land was liable to flooding or subsidence. Building can be prohibited on such land without compensation becoming payable. I think that that is reasonable.

Following this line, compensation will not be payable for refusal to allow a change in the use of a building. Let us remember that we have abolished the development charge and we may well make a change in the use of building. This is what we planners—[ Laughter. ] Well, I started as a planner long before many hon. Members who are interrupting me were born. The modern term for this kind of thing is "use zoning," a terrible piece of jargon which I have not yet been able to translate into English. I select this example for special mention because it is probably the commonest in the whole list of exclusions. I think it is clearly right.

Very often a change of use would be thoroughly unneighbourly. Let us take an extreme case. Suppose somebody wants to start a noisy industrial process in a quiet residential street. Sometimes a proposed change of use would not be so much unneighbourly as misplaced and wrong. It is not easy always to distinguish one case from another. I am inclined to think that the planning authorities sometimes try to interfere too much in preventing changes of use; this is a power which ought to be invoked very sparingly, unless the offence is clear. If the power is used only to prevent changes of use which would plainly be wrong or harmful we should all agree that compensation should not be paid.

Hon. Members may ask how we can be sure that the power is rightly used. I reply that there is always a right of appeal to the Minister. I know that my predecessors have taken a great deal of trouble to go carefully into the cases that were laid before them. Moreover, the Minister must answer to Parliament.

Clause 24 is complementary to Clause 23. It provides that compensation is not to be payable for refusal to allow one kind of development, let us say industrial, if another kind, let us say commercial or residential, is allowed. The principle is that provided some reasonably remunerative development is allowed, the owner is not entitled to compensation because he is prevented from exploiting his land to the most remunerative development position.

Under a refusal of permission, would such a person have the same facility as he had under Section 19 of the old Act, under which the local authority might have to purchase if requested to do so?

That point does not arise on what I am now talking about.

I am giving typical cases in which I think compensation should not be paid, because there is no right by a man to exploit his property by the most profitable method that can be thought of. He has only the right to use it in a reasonable way. Suppose housing was allowed and industrial production was disallowed. No compensation would be attracted in that case. As I say, it depends upon sensible administration. No planning authority should refuse to allow some useful development, except, of course, where the policy is to prevent development altogether. That is covered by the compensation Clauses in the way I have described.

I now come to Part III, which deals with the compensation to be paid upon compulsory acquisition. It maintains the position established by the 1947 Act. The price of land bought by public authorities will continue to be its value for existing use at the time of purchase, plus an allowance based upon the unexpended balance of the established development value, which I have just explained. That is, in fact, the amount of the claim, if any, still attaching to the existing use, plus the one-seventh supplement which represents interest promised under the 1947 Act between the years 1947 and 1955.

I will come to why they should pay, but it is fair that that interest should be paid because, theoretically, the money was owed in 1948 and the people concerned have been deprived of it for those seven years.

This is the provision in the White Paper which has given rise to considerable concern, especially to some people who dislike anything but the open market value as the price of land. The case for controlling the price of land when bought by public authorities was argued in the White Paper and again in the debate on the interim Bill. I think that most people accept the need for it, but, as there may have been some misapprehensions about it, I want to emphasise that everyone will be paid the full current value for his existing use. I repeat, that means the full current value, whatever it may be, at the time of compulsory acquisition.

That is not like some earlier provisions which sought to tie the value paid for existing use down to an earlier date, with the result that a man dispossessed of, say, a farm, could not expect to reinstate himself. Under these provisions it is only the price paid for the potential value that is pegged when the time comes for compulsory purchase the existing use value, whatever it may be, will be paid. In cases where planning has depressed the value of a man's land—and we must not forget that that can happen—it may well be that he will receive more than its market value. That is only fair.

We have tried, as the House will see, to deal both with any expenditure which an owner may have incurred in improving his land since 1948 and with the case where, on the strength of a planning permission, a man has bought land for development, paid a corresponding price for it, and then, for some good reason approved by the Minister, the land is bought from him compulsorily before he has had time to carry out his development and to convert the development value into existing use value.

Provided that he makes due inquiries, if threatened with compulsory purchase within the following three years he will receive a price which takes account of the value of the planning permission. I think that is fair. We do not seek in this Bill to increase local authorities' powers of compulsory acquisition. They are already very great as I know from many cases which one has to go through, and those are only the ones where there is possibly some dispute.

It was said in the White Paper that one result of the free land market might be that land owners may try to stand out for too high a price for land which ought to be developed, and that, if so, local authorities' powers of compulsory acquisition might need to be strengthened. The Government have as yet no reason to think that this is necessary. As I have said, local authorities have very wide powers to buy land and to make it available to private developers, and I am glad to see that they are making use of those powers where they think it necessary. Therefore, we have no reason to make any change, and we have no evidence that unreasonably high prices are being asked for land.

I now come to Part IV and Part V of the Bill, and I apologise for keeping the House so long, but this is a difficult subject which I have tried as clearly as I can to explain to the House. Part IV makes compensation payable in full for any decision in future which modifies or revokes a planning permission. It also enables the Minister to contribute to the compensation, which under the 1947 Act has in these cases to be paid by the planning authority, as much as he would have paid on any outstanding claim had the revised decision been taken in the first place.

Part V, as I have already explained, applies the provisions of Part II to planning decisions already taken and to revocations and modifications already made. It is really complementary to Part I, for it also deals with the past six years including all the decisions which are taken day by day up to the time of the Act coming into force. There is just one point here which I ought to mention. The Bill applies only to past decisions which have been taken under the 1947 Act, but some important decisions which may well give rise to compensation were taken under earlier legislation. I call to mind particularly a revocation of a permission to build houses on a very large scale in the green belt around London. That was made under the 1943 Act.

It was not thought practicable to make this part of the Bill apply to decisions under previous Acts, and I am afraid that in these cases we must ask the owners to make fresh applications in order to bring themselves within the scope of the Bill. I will just say something on a point which I know that the hon. Member for Acton (Mr. Sparks) is vigilantly watching.

The House will have seen that we propose to substitute for the complicated grants now payable to local authorities under the 1947 Act a flat 50 per cent, payable to all for all approved expenditure. I think I can say with confidence that local authorities will regard a flat rate as a great improvement. It simplifies enormously the system under which in the past 20, 60, 70 and 90 per cent, has been received, a system which has grown up owing to the situation of the last few years.

The new arrangement represents a marked improvement for many authorities in relation to a wide range of planning expenditure. Arrangements have been made, following discussion with the representatives of local authorities, to ensure that authorities already committed to the purchase of land for blitz reconstruction—which carried a high rate of grant under the 1947 Act—will not lose under the new arrangements.

With this, and with one or two other concessions that have been made and that appear in the Bill, I think I can say that the new arrangements are generally acceptable to local authorities. I will not say that the authorities are wholly content with the financial effects upon them under the Bill. Their position will be that, instead of paying existing use value pins development charge when buying land, they will now pay the existing use value plus any claim or part of a claim still applying to the land, and the one-seventh supplement, that is, the interest due, to which I have referred.

As regards past acquisitions, wherever a development charge was determined the case is settled by the determination of the Central Land Board, but where a charge was not determined, as in the case of acquisitions which have taken place since or just before the publication of the White Paper, that is to say, when a development charge has not been levied, then they will repay to the Central Land Board whatever the Board has to pay in settlement of the claim of the dispossessed owner.

In general, I think that local authorities will gain by the arrangement of the 50 per cent, grant and that they will gain increasingly as time goes on. The local authorities agree that in principle this is the right arrangement, although I admit—and this is what the hon. Member for Acton has waited for—that they have not yet accepted our views on the question of the interest payable. I will discuss that further with them, and I hope to persuade them that it is equitable and right. We think it is a necessary and equitable addition to the payment of claims and that it is right that it should be paid either by the central Government or by the local authority, whoever has to meet the claim concerned. In other words, it should be part of a claim.

But I frankly admit that there will be cases in which local authorities will not do so well under the new arrangements as under the old; that is where they buy land for a low value use, which has a heavy claim attached. The development charge in those cases was often assessed at nil for some of these low-value uses, or at an artificially low figure. We have agreed that where local authorities have bought land—for instance, for open spaces or allotments—before the White Paper they will not be asked to reimburse claims even though no development charge was ever assessed; even though the Exchequer has received nothing. In other cases the new 50 per cent, will apply—but there will be some losses. On balance, however, the local authorities stand, I believe, to gain substantially by the provisions of the Bill.

There is one further matter—and this is the limit of my trespass on the time of the House. Although I mention minerals at the end of my speech they are very important. The provisions for minerals come towards the end of the Bill, but the circumstances of the extractive industries have been prominently in the minds of myself and of my advisers throughout the preparation of the main provisions of the Bill. In many ways those circumstances are special and peculiar, and differ very much from the ordinary cases of land development.

We have found it impracticable to write into this already long and complex Measure all the adaptations which would be necessary to apply it in the mineral field. At present many of the provisions in force about minerals, as hon. Members will know, are embodied in regulations. After much thought we considered it our best course to make most of the necessary adaptations—because that is what they will be—by regulations also. These regulations will, of course, require an affirmative Resolution.

I think that, in the result, the additional time which can be given to preparing the regulations will provide us with a more efficient and flexible scheme than had an attempt been made, in the Bill itself, to cater for every possibility in regard to this mineral problem. I may add that we have started discussions with the Federation of British Industries on the special needs of the extractive industries.

I have kept the House long enough already, but I hope that I have called attention to the most important provisions of this very complex Measure. There are many points of detail which will, of course, emerge in Committee. I will end by saying that this Parliament accepted the first Bill, which we introduced at the end of 1952. No one then really challenged the essential need to abolish the development charge if we were really to get on with our work. It is now necessary to provide compensation where compensation must, in justice, be paid, and to make the proper provisions which will, in my view, support the planning work of the local authorities, support the great scheme that was laid down in the Act of 1947, and to secure that the planning of future land use shall remain fully effective.

4.45 p.m.

I beg to move, to leave out from "That," to the end of the Question, and to add instead thereof:

As the Minister says, it is a complicated Bill. "The Times" referred to it as a voluminous and intricate Bill. For my part, having tried to study the Bill, I could not withhold my admiration for the way in which the right hon. Gentleman moved its Second Reading. Very careful consideration of a great mass of intricate detail is obviously required. The Bill involves, for instance, such matters as the liability of local authorities to bear the interest—amounting to one-seventh of the claim; the 50 per cent, provision and many others of great importance. As I am perfectly certain that my hon. Friends will expound their views in the course of the debate, I propose, in the restricted amount of time available, to concentrate on the terms of the Amendment which I have proposed.

The Amendment refers to two main principles. First, to the necessity for preserving public interest in land values created by the community; second, to the necessity of providing—as we say this Bill does not provide—for the proper planning of land use. With both those points betterment, of course, is most intimately concerned. Betterment is the crux of the problem. I will deal with that first and then turn to other provisions which are suggested in substitution for it in this Bill.

First, there is betterment in connection with public interest in land values created by the community. It is a very familiar problem to everyone—the problem of preserving for the community the values in land created by the community but which now fall to the landowner. There cannot be any objection in principle—nor, indeed, is any put forward—to the requirement that such values should go to the community.

Where electricity, gas and water supplies, roads, etc., are brought to a property that property must increase in value as a result of community action, and that increase should go to the benefit of the community. Ribbon development, which Conservative Governments failed to prevent between the wars, gives betterment value. As the right hon. Gentleman said, the 1947 Act for the first time provided really effective planning provision. It means that, for the first time, we were, by legislation, concentrating development effectively on one piece of land where development is allowed, to the exclusion of another piece where it is disallowed. In other words, if planning provisions are effective they concentrate the betterment on some pieces of land to the exclusion of others.

What is the result of these new provisions? This Bill provides that compensation is to be paid by the community for the development of values which are to be sterilised, and that the community is not to have any advantage from development values which are to be allowed to fructify. It is to pay for what is unproductive and receive nothing at all for what it makes productive. That is a fundamental defect of the Bill. It means that the taxpayer may have to pay compensation not only to the person who suffers, but even to a person who actually benefits, from the planning.

If a landowner has two estates, one of which is zoned for development and the other sterilised, he gets compensation for the sterilised estate, and he gets the full advantage of the other estate, into which development is canalised, and upon which development might not have taken place but for these planning provisions. He gets an advantage from the estate onto which development is concentrated and receives compensation for that upon which development is sterilised. Under the plan he may even get development concentrated onto one of his estates from other estates. On balance, the plan may result in substantial overall benefits to him. Nevertheless, he pays nothing, and gets compensation for that land which is sterilised.

The only answer to this kind of problem is betterment, in one form or another, and it is not provided for here. No Bill has ever been brought forward by a Conservative Government to solve the problem of betterment. Every attempt made by a Liberal or Labour Government to deal with the problem of land values has been thwarted. Lloyd George attempted to do something about it, as did Lord Snowden and Lord Silkin, and they were all thwarted. It is no part of our case that we must, of necessity, preserve the development charge. Our case is that betterment, in some form or other, should be collected, and the Bill makes no provision for its collection.

I agree that the development charge was unpopular among landowners. It was a novel provision. But Purchase Tax was a novel provision, and that was also unpopular. We have not got rid of Purchase Tax, but the right hon. Gentleman has got rid of the development charge. That charge became unpopular because landowners were selling at prices above the existing use values. I have some sympathy with them in their predicament. They had to sell their land before their claim for compensation was met, and the result was that if they sold at a price less than the market value they were in danger—if they did not receive compensation in full—of making an overall loss on the sale of their land.

But the 1947 Act has never had a chance of working after a claim had been paid, because a claim has never been paid. The Act has never had a fair run. It is said that the development charge contributed to the cost of development. We know that the cost of the land is a comparatively small part of the cost of development in modern conditions. It certainly cannot be shown that the development charge prevented development, because we were using our resources to the utmost the whole time.

We have now abolished the development charge without replacing it by any provision for betterment. No trial is to be given to any proposal for amending the betterment provisions of the 1947 Act. It has been suggested that the development charge might be reduced, that it might be levied on the landowners, or that compulsory purchase powers might be used, but none of these suggestions has been given a trial.

I want to refer to a letter which Sir Malcolm Trustram Eve wrote at about the time of the discussions on the 1953 Measure. I shall read the relevant passage fully. Sir Malcolm Trustram Eve had previously proposed some amendment of the 1947 Act. He said:

Now I want to deal with the relationship between betterment and planning, and I put my case by way of four propositions. First, the planning of land use is essential; second, no planning is possible without compensation for those who suffer from the planning; third, no compensation is practicable except out of betterment, and, fourth, this Bill rejects betterment and therefore stultifies planning.

First, the planning of land use is essential. That is put forward even by the right hon. Gentleman opposite. I am not saying that his enthusiasm about planning is shared by all those who are behind him. Some of those on the back benches are not quite as near the light as shown from the Socialist part of the House as is the Front Bench opposite. [ Interruption. ] Great experts are often employed in order to defeat planning, as we know. I do wish to emphasise this point, and I hope that the House will bear with me, although it is perfectly obvious how absolutely essential it is for this country to have planning of land use.

The 1944 White Paper in referring to the earlier period, says:

My second proposition—no planning is possible without compensation—is also accepted, because no one has suggested confiscation. Therefore, we must have compensation. Surely no compensation is workable except by betterment. That is the crux of the matter. Completely to reject betterment stultifies planning unless there is a proper method of providing compensation which will be a practicable workable method which will not strangle planning. There might be different ways of obtaining betterment. We might do it by taxation of land value, by Lord Silkin's scheme or by the purchase of land to be redeveloped and resold, as contemplated by the Uthwatt Committee's Report. In one form or another, it is essential to have betterment.

I should have thought, before hearing the Minister's speech, that it was established up to the hilt that no compensation could really be made effective and available for meeting the compensation claims without betterment. The Barlow Report drew attention to the difficulties concerning it. The 1944 White Paper emphasised it. For instance, the Coalition White Paper, paragraph 5 says:

I recognise, and the Minister has emphasised this and taken advantage of it, that in those days the local authority was responsible for planning and the local authority also had to provide compensation. The essential point, however, is that in the absence of betterment, the planner, the authority responsible for the plan, was the authority that was to be responsible for providing compensation. That is the whole crux of the matter.

Here, the Minister said, in the course of his speech today, that the local authority is to exercise control without fear of cost, because, he says, the local authority should not have to pay compensation now in the case of injurious affection. Let us look at the Bill and see what it provides. It provides that compensation is to be found by the central Government but, in Clause 29, to which the Minister referred, in every single case where a claim for compensation is made, the central Government themselves are to make the decisive decision. In other words, what we have is the restoration of the inter-dependence of planning and compensation; the planning authority, the authority which in the last resort is to have the say as to whether the money is to be available for planning or not, is to be the same authority as the authority which provides the compensation.

In other words, what the Bill does is to abolish the solution in the 1947 Act and to restore the very vice that stultified planning before the war—that is to make the planning authority also the compensating authority. It abolishes the provision for the automatic independent provision of compensation by means of betterment—compensation which is automatically provided and grows out of the application of the planning provisions themselves.

The answer is made that the Treasury provides the compensation instead of the local authority, and that apparently is to make all the difference. The Treasury is to be, somehow or other, softer than the local authority finance officer. That really is not acceptable. The right hon. Gentleman on the previous occasion, I think with his tongue in his cheek, said that, of course, the Chancellor of the Exchequer would provide the money in gratitude for the saving of the immediate payment out of the £300 million, and he and his right hon. Friends would be poor Ministers if they did not remind the Chancellor of the Exchequer constantly of the good turn which they had done for him. The right hon. Gentleman, I am sure, did not mean that seriously.

Of course, the difficulty is that there is no really effective argument in favour of the Minister's view. He says that there is economic advantage in planning, but these advantages are long-term advantages; and what the Chancellor of the Exchequer is met with, and must always be met with, is not merely the provision of money for planning, but the provision of money for innumerable other things as well. Take the Road Fund. It was originally intended to provide for improved roads but it was raided by the Chancellor of the Exchequer. Of course, the Chancellor has a duty which is not just to concentrate on planning and to give that an absolute priority over everything else.

His duty is to provide for the financial and economic well-being of the country. But he has to take everything into consideration, not just planning. He must have consideration of these various demands, but that means that once we say that he has an overall responsibility for everything in the country without the duty of giving planning absolute priority over everything else, then of necessity the financial considerations as understood by the Chancellor must prevail over planning considerations.

We are throwing away the advantage of the automatic fund for compensation which is provided under the Silkin Act, and can be provided by other means—a fund which is provided out of the application of planning itself. This Bill, therefore, puts the clock back to the position which existed before the Silkin Act was passed. It restores at central Government level instead of local government level the financial stranglehold on planning which condemned pre-war planning.

I now come to another matter to which the Minister referred. That is the two-tier price system for which this Bill provides. This two-tier price system, as he himself implied, is fundamental to his Bill and to his planning provisions. He said—and I took down his words—that its abolition "would ruin planning" because it would mean that compensation for planning restrictions would have to be paid at the peak value.

Let us look at this two-tier price system. As I understand it, it works in this way. If land is sold in a private sale or a free sale—not a sale by compulsory acquisition—then the market price of that land is to be the ordinary open market price, which consists of two elements—the current existing use value and the current development value. Where we have, on the other hand, a compulsory purchase, the lower 1947 claim amount is substituted in place of the current development value.

In his letter to "The Times" Sir Malcolm Trustram Eve suggested that there might be a case where the price of an open market sale might be £200 and the price under the alternative compulsory acquisition might be £50. On the other hand, I am advised that there may well be cases in urban areas where the procedure works in the opposite way and where the price which would have to be paid by the local authority for compulsory acquisition, owing largely to the one-seventh interest calculation which is included in the price, might be more than the market price.

But let us take this original instance, this discrepancy between the £200 and the £50. It means in this case that what the landowner gets for his land will depend entirely on the chance of who happens to be the purchaser, whether it happens to be the local authority or a private individual. That is an extraordinary price structure to set up. I cannot see how a price structure of that kind—that two-tier price system—if imposed upon the country can possibly survive. It will certainly be subjected to the most acute opposition from amongst those on the Government benches. I should be amazed if the Minister has not already had trouble about it.

Let us see again what, in the letter to which I previously referred, Sir Malcolm Trustram Eve said. He said that compensation at 1947 values will never work in the case of compulsory purchase. That is a fair-minded, independent, expert opinion on a provision made by the Minister which he himself recognises is fundamental to the Bill and which if it did not work would, in his own words, "ruin planning." "The Times" of this morning says:

What is the effect of all this on planning? First of all, if this two-tier system of prices breaks down, the whole of the Minister's Bill breaks down too. Secondly, on the part of the Government who have to provide the compensation, there are bound to be considerations other than planning which come into account. There is the very real immediate danger that development permission will be given when it should not be given because it will not be in the economic interest of the country—the immediate economic needs of the country—that the Government should provide the money at that stage. Thirdly, the local authorities who are buying land for development will obviously tend to buy where no claim has been made in order to get the land as cheaply as they can. Under this Bill planning will be sacrificed and warped by the financial contraptions which have been inserted in the Bill.

The only way to deal with the matter is to provide a financial solution which will make compensation and betterment interrelated in some form or another. Take the position of a local authority which wants to have the advantage of the betterment resulting from the planning. What the planning does is to concentrate development on one piece of land to the exclusion of another piece of land. Therefore, it results in a measure of monopoly of development, and the more effective the planning the more effective the monopoly.

How does it work out in practice if a local authority wants the advantage of 1947 development value? Take the example of a farm which is to be turned into a building estate. As I understand the provisions of the Bill, if a local authority were to buy after development, it would pay the current use value; that is, it would buy the estate as a building estate without any allowance or deduction at all in respect of the development value which is embodied in the price, though it could have obtained that value at the 1947 claim amount if it had acquired the land before development instead of afterwards.

As I understand it, once development has taken place, the local authority's advantage in price from the 1947 development value disappears altogether. It is caught up by reason of the development having taken place. Therefore, if the local authority is to have any advantage from betterment, it must acquire the property before development takes place.

The remedy, supposing one were to try to work betterment within the four corners of this Bill, would be by the compulsory purchase by the local authority of land which is to be developed. Something on those lines was suggested in the Uthwatt Report. That report suggested that there should be compulsory purchase of land by local authorities and then the leasing of this land by local authorities. What was contemplated in the 1947 Act was that where necessary there should be compulsory purchase by the Central Land Board. That did not have a run because the Fitzwilliam case held it up.

The difficulty of the local authorities in any case to obtain betterment by this means would be to find the resources with which to do it. "The Times" today, commenting on this method of obtaining betterment by compulsory acquisition, says of the Bill:

5.22 p.m.

I beg to second the Amendment.

We can all pay tribute to the Minister's heroic attempt to explain the Bill. We can also feel a good deal of sympathy with him in the task he has undertaken. I think the right hon. Gentleman endeared himself to many of us when he told us on a previous occasion how, when he was discussing the problem of rating valuation with his advisers, he exclaimed "Is it as bad as town and country planning? Oh, golly." I can assure the right hon. Gentleman that the reaction of people in the House and the country, on contemplating the Bill, was, "Is this more complicated than the 1947 Act? Oh, golly." In one respect, at any rate, the right hon. Gentleman has lived up to the high tradition of his predecessors. He has succeeded in producing the most complicated piece of legislation of all time.

The problems of town and country planning to which he now devotes himself have been very much the walking ground of great men. We have had a remarkable succession of Ministers concerned with them. The first was Lord Reith who, in planning as in so many other things, has made such an enormous contribution to the welfare of the nation. With his great, broad vision and his insight into the realities of these problems, he started a great deal of the work on the planning which we are now discussing.

Then there was my noble Friend Lord Silkin. He distinguished himself particularly by his skill in designing such an instrument of precision for controlling planning development. He obviously devoted himself with tremendous enthusiasm to the minutest, the most careful and most accurate design of a control of extraordinary delicacy, which delighted his heart. I have no hesitation in saying that I think that when the history of the six years of Labour Government comes to be written, the work of Lord Silkin will be seen to have been such that his reputation as a great Socialist improviser and designer will last as long, if not longer, than that of any Minister in that Government.

He was followed by my right hon. Friend the Member for Bishop Auckland (Mr. Dalton), whose absence today we so much regret. He is a very different kind of person, and his approach to town and country planning was of a very different kind. He always carried a song in his heart. What interested him were National Parks, the Pennine Way, short pants and all that. He delights in fresh air. He was assisted by my hon. Friend the Member for Wellingborough (Mr. Lindgren), who is never so happy as when in a bathing suit before breakfast, and in their day at the Ministry there was a virility about town and country planning that was of great value. It was of great value because it demonstrated that what we were doing was not merely improvising controls for their own sake but providing for a fuller, happier and healthier life for the people.

The test of town and country planning is that it makes that provision. All the complicated legislative design which one has to use to achieve that purpose is not of value in itself. It derives its value from its result, which should be that the people will enjoy themselves more. It may be that speculators may lose a little profit, that brewers may not be able to put their public houses in places of their choosing on the main roads where they are likely to get the greatest amount of custom—a prospect that so upset the Minister a short time ago. Although that sort of thing may happen, nevertheless on balance the result of planning is, for the ordinary people, a healthier and pleasanter country in which to live.

What contribution is the present Minister making? The most interesting contribution he has made is to cease to call himself a Minister for planning. That title was put carefully in the background, I think with the object of persuading some of his supporters that there was no planning going on at all in his Ministry. I am not at all certain that he has not so successfully disguised himself as to make planning disappear altogether. But there is the right hon. Gentleman, and he is left now with the task of trying to make this extraordinarily difficult machine work and, in particular, trying to make his own contributions to its work.

The only thing in this Bill that I have been able to understand, the only thing that is clear and unequivocal in the interpretation Clause, is the sentence which says that "the Minister" means the Minister of Housing and Local Government. There is no getting away from it. It is quite true that the name of the Secretary of State for Scotland appears on the back of the Bill, but I gather that the only reason for that is in order that he can reserve the right to be present at the contingent obsequies of the Central Land Board. Here is the responsibility placed firmly and squarely on the shoulders of the right hon. Gentleman to whom, as he has quite frankly admitted, the whole business is a little distasteful and, as my hon. Friend the Member for Clapham (Mr. Gibson) ventures to suggest, a little boring.

That is the view that he is managing to sell to the country and to this House. He is managing to create the impression that this great implement of town and country planning, which has had the contributions of so many great men from Lord Reith down to my right hon. Friend the Member for Bishop Auckland, and which has done so much and will do much more to help the life of the nation, is something dull, boring, highly complicated and technical. There is no excuse at all for bringing in a Bill of this kind, which I am quite certain nobody can hope to understand.

I should like to give one simple illustration of what happens to one when one tries to understand this Bill. It is a bad thing to start at the beginning of this Bill. I learned that it is wise to start in the middle. I started in Part III.

Jumping about, I regret to say.

I did not get far before I came across, in Clause 35, this interesting phrase:

I looked up Clause 71 to try to find out what was meant by:

Yes, I went back to find out what "claim holdings" meant. I then found that that expression had a meaning assigned to it by Clause 3. I turned to Clause 3, and I found that Clause 1, I can now answer the question of my hon. Friend the Member for Stalybridge and Hyde (Mr. Blackburn) as to whether one ought to read forwards or backwards. If one reads backwards, one is likely to get the definitions clear and then if one reads forwards one gets somewhere near to understanding what it is all about.

After having unsuccessfully tried to understand the Bill, I wrote to a friend of mine who is at the top of his profession as a surveyor. I have not his permission to read his letter and, therefore, I shall not give his name. I shall only say that he is not a local estate agent round the corner but has as detailed a technical knowledge of the 1947 Act and of its implications as any member of the surveying profession.

Is the hon. Member going to start in the middle of the letter?

Strangely enough, being a surveyor and not a lawyer, my friend started with the main thing at the beginning of his letter. He says:

My friend continues:

This is a Bill which will be a hunting ground not only for lawyers. It will be something to which the clerk of a rural district council or some surveyor in a country town will have to refer to try to find out his position, the financial obligations of his authority or whatever the problem may be. All over the country it will be perused by people who are not highly qualified experts. It is, therefore, incumbent upon the Government to try to produce a Bill which can be understood by people and which has some meaning that can be understood, not just by great experts, who are at present defeated by it, but also by ordinary professional men and ordinary officers of the local authorities.

I felt thankful that the right hon. Gentleman did not tell us that there will be an opportunity of going into this Bill in detail in Committee and improving it. After our experiences on the Housing Repairs and Rents Bill, it is some comfort to know that the Minister does not intend to have this Bill improved in Committee and was not trying to avoid criticisms on Second Reading by pretending that anything at all would happen in Committee. At least we know that the Bill will go through more or less in its existing form.

I should like to come for a moment to the provisions of the Bill, so far as I can. I do not give any absolute value to anything that I say, because it is likely to be wrong. I do not understand the Bill and do not pretend to understand it. [ Interruption. ] Did I understand the Attorney-General to say, "Why make a speech?"

What may be a great shock to the Attorney-General to understand is that there are a great many people in this House who are not highly-paid professional men but who have some responsibility to their constituents to try to see that something like justice will be done to them. There are large numbers of laymen serving on local authorities who have to sit on committees and study Bills of this sort to try to find out what they mean. It is not enough for leading counsel and highly-paid civil servants to produce incomprehensible nonsense and then laugh at hon. Members who are trying to do their best to understand what it is all about.

We shall see that tonight. The object of scrutiny by Parliament is to ensure that experts satisfy laymen that what they are considering is just and right. That is why I venture to discuss the provisions of the Bill in the House as far as I understand them.

We have a short-term problem and a long-term problem. In the short run this Bill will undoubtedly avoid some of the difficulties which have arisen under the 1947 Act. Undoubtedly people are going to feel that things are easier. That is the weakness of the Government and the weakness of their policy, because the valuable thing about the 1947 Act was that, with all its defects and difficulties, it was a tough bit of legislation which did a job which had to be done and did it well.

Although there were bound to be difficulties in the transitional stages, once the system of compulsory purchase by the Central Land Board was in operation and people had got used to paying the development charge and had had some of the compensation money, the system would work satisfactorily. We had to get through a bad stage of unpopularity to reach that ultimate result. The effect of this Bill will mean that certain immediate short-term difficulties will be done away with. In the main, people are not going to suffer immediately as much as they did under the 1947 Act, but, under the complications that are being stored up for the future the handicaps which are to be created for planning in the future will be enormously increased.

As my hon. and learned Friend said, we are never going to be able to work the system by having compensation for development values on the 1947 basis of compensation and current existing use value for compulsory purchase whilst, outside the public purchase, the sky is the limit for land values. Except in so far as some public body is going to purchase the property, within the limits of planning permission land values can be pushed up as much as one likes. The land speculator can charge high prices and make as high a profit as the market will bear.

It is like a game of snakes and ladders. Provided one keeps out of public purchase one may shoot up and up the ladders and get more and more money, exploiting a favourable position and getting full advantage of the services provided for the community and the increased value they give the land. One can go on doing that in the worst possible ways, as one could before the 1947 Act was passed. But there will always be the possibility of getting on to a snake when the local authority or any public authority buys the land. Then thump will go down the price.

This seems thoroughly unjust. There may be two pieces of land in exactly the same situation, say, on the periphery of a developing town where the services are coming out. Transport is coming out and factories are being built. One site may be left for private development and the other site may be used for a community centre, or a housing estate. On the site left for private development within the limits of planning, all the advantages of the services provided by the community and the advantage in respect of development by the community will accrue to private profit. But in the other case, on the piece of land which happens at some stage in its life to attract public authority purchase, it will lose those advantages.

That seems a shocking injustice to perpetrate between one landowner and another by a party which is supposed to believe so passionately in the private ownership of land. It will create an impossible position for the local authority trying to plan ahead. If it wants to buy land it must start at once because, although it is going to get the advantage of 1947 development values, it will have to pay current existing use values. Therefore, the quicker it moves in, the less development value has been transferred by development into existing use value, the less will be paid at current prices and the more at 1947 prices.

It would be interesting to know what is to be the attitude of the Government towards local authorities which are planning development and want to buy land in advance of immediate use. Are they to be allowed to do so, or are they to be restricted? That is a point on which it is valuable to know the position.

Another question I wish to ask is in regard to Clause 37 dealing with the "Protection for prospective purchasers." We are told there that someone who is going to buy a piece of land and wants to know if a local authority has or has not a design on it can give notice asking whether the council proposes to acquire any interest in the land. Having been notified that the authority is not going to acquire it, I understand that the prospective purchaser is all right for three years. Within three years, if there should be an acquisition, he will be fully compensated.

What I am not clear about is what happens when the local authority says it is going to acquire the land. Does Section 19 of the 1947 Act then come into operation, and can a notice to make a local authority acquire it be served? I do not imagine that necessarily it can, but I am not quite clear of what is the effect. Until one can have that point explained the obvious thing for the local authority to do to protect future interests would be to say that it would acquire the land and, in reply to all applications, to say that it is ultimately going to acquire the land. Probably what I have said is due to my misunderstanding of or misreading of the Bill, but I should like to have that point cleared up.

I share the view put forward already that there seems no reason whatever why a local authority should have to pay the interest on the payment of compensation. The local authority did not fix the amount and has no control over whether or not compensation should be paid out. That is the responsibility of the central Government. Surely they are the right people to pay the cost of their decision, and they should not put it on the ratepayer. I suggest that that provision ought to be altered. I do not know whether the Financial Resolution is drawn widely enough to enable an Amendment to be moved to that effect, but, if not, I certainly think that it should be so.

I wish to make another general comment on the Amendment, which says that the Bill outside the sphere of public control, the benefit of community activity, even if subsequently the public authority buys the land, will accrue to the private owner.

It undoubtedly prejudices the work of local authorities, because they are going to be faced not only with paying more in the future but, in some cases, as I think the right hon. Gentleman admitted, they are going to pay more for land which they have already purchased. In paragraph 26 of the Explanatory Memorandum, where the financial burden on the central Government is dealt with and where it says that payments are going to be "of the order of £30 million" a year, it adds:

That seems to me to be a breach of confidence with the local authorities and other public authorities, who made their estimates and decided upon proceeding with their particular schemes on the basis of paying the existing use value plus the development charge, which, as the right hon. Gentleman has said, is often much lower than the admitted claim. In this respect there is no doubt at all that the Amendment moved by my hon. and learned Friend the Member for Leicester, North-East (Sir L. Ungoed-Thomas), which I am endeavouring to second, is a fair one and goes to the root of the difficulties of this extremely complicated Measure.

There is one other thing I should like to say. No doubt we will be asked—and I think it is a fair question—what are we going to do if we are not prepared to accept this scheme? Are we prepared to revive the provisions of the 1947 Act or have we some other alternative? I will say, speaking for myself, that I have come to the conclusion that the 1947 Act was the last heroic attempt to work a land system based upon the private ownership of land. That was an attempt to separate development value from ownership and to nationalise development values, leaving the land itself in private ownership.

We are now told that this system has broken down, that it is unpopular and that no Government could continue it. If that be the position we have to look at the alternative, which is not a Bill like this, which nobody can understand. If we have got to the stage that the only way of getting near justice between the community and the private land owner is to produce something nobody can understand, then surely that is sufficient evidence that the whole system has broken down.

The alternative to that, if private speculators are not to be allowed to reap the harvest of the community development for their own private means, is that public authorities should be buying more and more land in advance of their requirements, in order to avoid having to pay inflated prices, so that they can reap the advantages of development for the community. The logical answer to all this must be public ownership of land, and, therefore, I am sorry that the leaders of my party in conference at Margate, during the debate on the nationalisation of land, thought of it in terms of agricultural land. I do not think of it in terms of agricultural land. I think of some of the great estates in London that have been falling into the market as a result of the Estate Duty to be paid on them. These estates ought to go into the ownership of my hon. Friend the Member for Clapham (Mr. Gibson) and his colleagues on the London County Council. I think it is a shame that these great estates, many of them the result of planning, should be broken up and sold off into small freeholdings.

More and more it is going to be inevitable that any public authority, whether it be the Central Land Board or a local authority which is planning the development of its area wisely and well, is not going to go on handing out unearned increment in profits to private speculators, but must step in and purchase the land itself. I believe we are moving towards a policy of fairly general ownership of land, and I must say for my part that I can congratulate the Minister of Housing and Local Government because by this Bill he has demonstrated conclusively that there is no future for the private ownership of land.

If we are going to tackle this problem, we must immediately move towards a wider interpretation of the public ownership of land, and I express my cordial thanks to the Minister for so decisively demonstrating this to the House and to my own party this afternoon.

5.56 p.m.

I hope to return at a later stage of my speech to the concluding observations of the hon. Member for Widnes (Mr. MacColl). I must say, to begin with, that the earlier part of his speech was one which left me completely breathless. I do not think I have ever been so excited since entering this House as I have been this afternoon when I heard the adventures of the hon. Member in trying to find his way around this Bill. I can only imagine what the hon. Member does with a detective story.

As one of those dull-witted lawyers whom the hon. Member attacked earlier in his speech, let me give him one bit of advice. If he is reading a Bill it is always wise to start at the beginning and go on reading until the end and then stop. There is only one exception to the rule, and that is when reading the report of a Royal Commission or a Select Committee of this House. Then he should go to the end, see what the recommendations are, then go back to see the reasons why.

I want to turn now, if I may, to the Amendment. I think it is displaying the Opposition on the horns of their traditional dilemma. It says that the Bill before the House should be rejected because basically it provides no solution to the "compensation-betterment problem" as it is called, and when hon. Members opposite are asked, as I think we are entitled legitimately to ask, what would they put in its place, we receive, in effect, no conclusive or satisfactory answer.

The hon. Member for Widnes closed his speech by calling for all-out nationalisation of the land. I thought he was rather naive, if I may say so, in that he did not look at nationalisation of land from the agricultural point of view. Certainly the Labour Party Conference last year did not, but remarks such as those made by the hon. Member will do nothing to sooth or calm the fears of people in agricultural areas that the result of the return to power of the party opposite would be nationalisation of land. The nationalisation of urban land cannot be separated from the nationalisation of agricultural land, and if it is the solution of this compensation-betterment problem, that the party opposite would seek to impose upon the country nationalisation of land, then that solution will not be lost upon the people in the rural areas.

I am by no means running away from that ultimate objective, but that is not what I said. What I said was that the inevitable result of this Bill will be that local authorities developing areas will want to buy in advance of their requirements on a very much larger scale than has been done in the past. That is not the same thing as saying that we are going to have all-out nationalisation of all land, particularly agricultural land.

This is getting very interesting, although it has comparatively little to do with the Bill. I think I am correct in saying that the hon. Member stated that his party conference last year looked at this matter from the point of view of agricultural land, whereas he looked at it from the point of view of the big estates in London, which were having to be sold because of death duties.

If I recollect what was reported about the Labour Party Conference at Margate last year, they did not agree to put nationalisation in the forefront of their electoral programme at the next election.

If I may, I should now like to turn the attention of the House to the fundamental flaw in the whole of the argument to which we have been listening this afternoon. I have never been convinced that there is anything in this argument about betterment. As I have always understood the argument, it is that since the community, expressed generally through local authorities, creates certain conditions by enabling development to take place in a certain district and, as a result, land values are increased, then the community should siphon off either all or some of the consequent increase in value.

If that is the idea, there is already betterment both to the local authority and to the national Exchequer because, whenever development takes place, rates are imposed on the development and they siphon off a certain amount of the profit—though it may not be as much as hon. Members would like—and Schedule A tax is similarly imposed, if no other kind of taxation, which siphons off a bit more to the National Exchequer representing the broad mass of the community. So there is already betterment whenever development takes place.

Then one has to realise that the argument for betterment requires that we should accept that the local authority is primarily, and indeed solely, responsible for the development taking place. But that is by no means true. The development takes place in this country under our present system because somebody believes that by building, whether it be a house or a factory or some other kind of structure upon land, or by delving under the land to get out minerals—for that is development too—they hope that they will make a profit out of it. It may be a large or a small profit but, nevertheless, they choose to do it.

The local authority really does nothing to ensure that this profit will be obtained. All the local authority does is to serve the needs of those people who will come to live in the houses, if it is a housing estate that is being developed, and to provide services, at a proper payment, for those industries that happen to be there an will require roads, water or any of the other services that the local authority will provide.

Also we have to remember that it is because the private individual undertakes development that the local authority can exist at all. Because if, say, a factory estate is created in the area of a local authority, it means that the people who will come to work in that factory themselves become ratepayers of that local authority and thereby the general standard of prosperity of that community is made to rise.

I am not satisfied about the "betterment problem." I have never considered that it was based upon sound arguments, and I am glad that the present Bill before the House does not seek to provide some half-baked solution for it. But the hon. and learned Member for Leicester, North-East (Sir L. Ungoed-Thomas) said that there had never been an attempt by a Conservative Government in the past to deal with the betterment problem, and that in the past we had "thwarted" all efforts made by every other Government.

I do not think we ought to allow him to get away with that. It was not the action of successive Conservative Governments that thwarted the collection of betterment. The facts are that in the past, whenever an attempt has been made to fasten some artificial system of collecting betterment upon the people of this country, they have rebelled because they have refused to work the system.

Why are we here today, arguing about the Town and Country Planning Act, 1947? Because it was a completely unworkable system. However wonderful the fallacious theories of hon. Gentlemen opposite may be, however many tributes may be paid to Lord Silkin, the fact is that this delicate and wonderful machine that he erected, which everybody regarded with bated breath, did not work when it was asked to do the job. It did not work because it did not take account of the fact that the ordinary private person, when he came to develop, whether for his own occupation by building a house to live in, or to provide houses for other people to live in, or to build a factory to provide employment, did so because he hoped to make some profit out of it.

If we took away all that profit in the form of a development charge, there was no longer the remotest incentive for him to carry out the development. That is why the Act failed. It was erected on shifting sand and it could never do anything else but fail. I believe, therefore, that the compromise which the Minister has made to clear up this mess which was left for us when we came to office is a wise one.

Unlike the hon. Member for Widnes, I want to pay a tribute to those who drafted this Bill. It is a remarkable piece of work in the sense that, although it may not be easy to understand, I have looked it through carefully but can find practically no point which any reasonable minded person could forecast would create trouble in the future that has not in some way or another been covered.

I know that a great deal of work has been done in the Ministry on this Bill and a tribute should be paid to those who have spent such an amount of time in carrying out the complicated job of what the Minister calls "unscrambling." Because indeed unscrambling is necessary. We could not just abolish the development charge and leave it at that.

If I have one criticism of the Bill, and it is not mine alone but has been voiced in a number of other quarters, it is one which we shall have to consider in Committee. It is the acceptance for all time of 1947 development values. I understand the argument of the Minister.

My right hon. Friend says that we must have a platform upon which we must rest and we must not budge from it. There is a great deal in that, but I hope that in Committee we shall seek an opportunity of making some adjustments, opening one or two loopholes for those people who, for the best and not for the worst of reasons, failed to make some claim in 1947.

I know my right hon. Friend said there must be no further claims, and that the settlement must stand where it was in 1947, but I hope we shall press him about this. There are many people who failed to make a claim because they did not think the Act would work, or they did not think the party opposite would ever pay out the £300 million compensation. There were many who thought that their land had no value, and many who found that when they sought to establish a claim, their land had in fact no value under the de minimis provisions of the 1947 Act.

I hope we shall look at that again, because there are many unlucky individuals who will otherwise find that they will no longer have the right to recoup themselves in the future for the development value which, whatever the Central Land Board may say today on their records, did in fact exist in 1947.

I am thinking particularly of agricultural land, for a great amount of which either no claim was made or registration was made of nil value except for agricultural purposes. In time to come undoubtedly there will be use made of some agricultural land for building and other kinds of development—since we cannot avoid that, I am afraid—but when that time comes the farmers whose land it happens to be will feel sore if, having failed to make a claim in 1947, or having made a claim had it determined at nil, they are to lose what may be extremely important and valuable compensation in the future.

I have been listening with great attention to the speech of the hon. Gentleman, and I understood him to say that he saw no logical foundation for cases where there had been betterment, that is to say, development value acquired by the individual out of public operations. If he sees no logical foundation for that, what is the logical foundation for compensation for loss of development value?

I understood from the speeches we have already heard from hon. Members opposite that it was not disputed that when development permission was refused compensation should be paid. I listened particularly to the hon. and learned Member who moved the Amendment on that point. I think there is every reason why compensation should be paid if there is such a refusal, but—and here I am on an entirely different point—what I deny is the case put forward by hon. Gentlemen opposite, that if in fact development takes place, some part of the value, if not all of it, should go to people who have done little if anything to create that value. That is where my case against betterment rests.

I have promised not to detain the House for very long because there are other hon. Gentlemen who wish to speak, but may I say in conclusion that I am sure that this Measure will find an important place in the history of land use and its development in this country. More than that, I think it must be regarded as an essential part of this great fabric which we have been erecting during the period since 1951 when this Government have been in office.

We have got rid of development charge. We have got a better and more workable system of planning land use. We have taken the necessary steps to enable houses which at the moment are falling into decay and disrepair to be repaired and saved. Finally, we are going ahead with the task of building large numbers of new houses at a better rate than any the previous Government could achieve. This Bill is all of a piece with that great housing drive and slum clearance drive on which this Government are engaged, and it should be warmly welcomed by the House, as, indeed, it will be by the country.

6.11 p.m.

Because of its wide incidence I think this Bill is very important indeed, and because of that I regret the abracadabra which always grows up around town planning debates in this House. It is a regrettable thing that lawyers, architects and surveyors should enter into a conspiracy to confuse the issue so far as the public are concerned. It is a conspiracy of technocrats against those who have to suffer the activities of the technicians, and very often the people who suffer the activities of the technicians have a better idea of what it is all about than the technicians themselves.

One of the effects of the incidence of a town planning debate in this House is that many hon. Gentlemen are dismayed, and depart. The poor, overworked and underpaid Member of Parliament leaves the Chamber. And what happens? Here it is the overpaid and—so far as I can gather from his recent activities—underworked Attorney-General who arrives. It is doubly regrettable, because the stakes involved in town planning are very high indeed.

We have to ask ourselves, when considering this Measure and the Money Resolution which follows it, and the large sum of money which is to be paid out under this Bill or under the 1947 Act, whether it is all worth while—whether it is worth the effort of considering this complicated legislation, of implementing it and financing its administration. It is best to go back and consider the basic need for town planning, and what it actually seeks to do. It is only if town planning is worth the price, that this effort and the spending of this money is actually worth while.

What is the first reason for town planning? It is to ensure good living conditions for ordinary people. There is nothing very complicated about what are good living conditions and what are the reasons people like to live in particular places. The specific reason may be that the shops are near, or that there is a handy playground for the children, or perhaps there are schools or cultural entertainments nearby, or because their work is near at hand. These things constitute the ordinary yardstick by which we may measure good living conditions.

When we consider the average town or hamlet in this country we see that about one quarter of the houses have been built in the last 25 years—I am excluding the old buildings—and that means that on average most towns and villages are completely redeveloped every hundred years. If that is so, any Measure which enables us to see that future building goes on in the right place is one of profound importance to the living conditions of the whole community.

The second reason for good town planning is efficient industrial organisation. Any responsible industrialist knows perfectly well that an efficient production line does not begin or end at the factory gate. If this country is to be confronted with extensive competition in the industrial markets of the world it cannot afford to sustain an inefficient industrial production line outside the factory gate.

I wish to quote at some length from an article which appeared in the "Manchester Guardian" of 11th November, 1953, referring to the effect on industry of the present traffic congestion. I make no apology for doing so, because the matter is of considerable importance. It refers to the effect of the cost of traffic jams in big cities and it draws attention to a survey which took place in New York:

Would my hon. Friend add that, in addition, much engineering development is being retarded, especially in the field of heavy electrical engineering, because indivisible loads which could be produced now cannot go into production because they cannot reach the ports or the places where they are needed?

I could not agree more. The point I wish to make is that if British industry is to be competitive it can no more afford this inefficient communications system than it can afford inefficient or out-of-date plants.

The third reason for good town planning is to ensure a thriving countryside. We cannot have a thriving countryside in a small island such as this if the best agricultural land is continually taken for housing development. The town planning laws of this country are the best safeguard of good agricultural land.

I wish Sir James Turner and the National Farmers' Union had had a sufficient sense of responsibility to appreciate this, instead of indulging in what is a relatively shortsighted policy of attacking the town planners. The National Farmers' Union should recognise that the best safeguard of agricultural land is an efficient planning system. Before they seek to attack the planners they might well also address their minds to the fact that there is a great deal of agricultural land which is not yet being properly used, and there are many farms which are not as efficient as they might be.

However, by and large, that still does not undermine the main argument. The over-statements of the N.F.U. do not in any way undermine the main argument which is that it is essential to preserve good agricultural land and, at the same time, that town planning legislation is the best way of ensuring that.

The fourth reason town planning legislation is essential is that if we are to revitalise the declining country towns—and it is essential to do that if we are to halt the drift from the rural areas—it is important to have legislative powers which prevent the development of industry in the congested areas and divert it to the declining country towns. To sum up on that point, if our economy is to be viable and if we are to be free of dollar aid from the United States, it is essential to have greater home food production, and that cannot be achieved or safeguarded unless there are proper land use control powers which can be effectively used.

Those are the four reasons I think that it is important for us to consider the Bill, not in the light of the narrow technical difficulties of drafting, but in the light of the wider positive principles of the advantage that the nation will achieve out of it. That brings me to the real stumbling block which has affected town planning legislation up to now. I refer to the compensation and betterment problem. The Barlow Royal Commission in the 'thirties recognised this and, in its Report, published at the beginning of the war, said that we could not have proper town planning until we had settled the problem.

It said that it was impossible to have effective land use control until we were able to say to a person, "Yea" or "Nay" without any thought of the financial considerations involved and the injustice which might result to that individual. In a democratic society such as this—and we recognise it fully on this side of the House—it is important for us not only to be fair but to be understood to be fair to every member of the community, even the landlords.

One cannot be unfair to one property owner while, at the same time, giving another property owner a start on him to achieve an increase in his own personal wealth as a result of the monopoly which the community has conferred upon him. The Barlow Royal Commission stated this stumbling block which had held up effective town planning up to then. The 1909, 1919, 1925 and the 1932 Acts all fell at this one hurdle. The Royal Commission said that the first task of any Government considering town planning was to set up a committee to go into the whole question of how to get over the hurdle. Hence, the Uthwatt Committee.

The Report of that Committee, published during the latter part of the war, still remains the standard analysis on this problem. What the Uthwatt Committee said was that there were two distinct values in land. There was the existing use value, whatever the land was being used for at the time; and the possible development value of some more profitable use for the future. Everybody could be left with his existing use value; but people could not enjoy their development value if they were to be refused permission to develop. Therefore, it was essential, for the community to get effective town planning legislation, to have some unification of the development value.

There was a conflict, as the Report said, between the public and the private interest in the utilisation of land. We got it when it was in the public interest to preserve a field on the edge of a town because it was good agricultural land, but it might be in the private interest of the farmer to sell the land to a speculative builder. How are we to be able to say "Nay" to the farmer until we have some means by which we do not penalise him financially and place him at a disadvantage with somebody who has bad agricultural land and was able to gain a greater sum of money as a result of the fact that he was being given planning permission to develop the site?

The Uthwatt Committee summed up the matter quite clearly in paragraph 39. It said: However, it said this about land nationasation, and I do not want to say much more about land nationalisation now, because I should like to come to the Bill.

I agree with every word said by my hon. Friend the Member for Widnes (Mr. MacColl), but I remind hon. Members opposite of what the members of the Uthwatt Committee had to say. These were no doctrinaire Socialists. They included a responsible lawyer of a much greater legal distinction than the Attorney-General. They were anxious to solve the problem in order to get over the hurdle of the difficulty about which I have been talking. In paragraph 46 the Report says:

Then it says:

Land nationalisation is not nearly as revolutionary as some people imagine. I discovered, on looking at the files of my local newspaper, not long ago, that it was advocated by one of my predecessors during a by-election in 1908, and he sat on the benches occupied by the Liberal Party. It used to be the standard battle cry of the Radical section of the Liberal movement, and it is the one nationalisation which is accepted and which is understood by the more intelligent sections of the party opposite. It is the only practical solution to the problem.

However, I come to the Bill. I am sorry that the Bill does not measure up to the yardstick which the Uthwatt Committee set of how we could get over the hurdle which had been holding up effective administration of town planning legislation up to now. The Bill does not produce a competent long-term solution to the problem. I will have a few words to say about that as the main gravamen of my charge against the Government today, but first let me say that I am glad that the Minister devoted himself to the argument which some of us put forward in the debate in 1952 about the danger of Treasury control of planning administration.

I remember that during that debate some of my hon. Friends and myself drew attention to the paragraph in the White Paper which said that the Government would look to the planning authorities to exercise discretion with regard to public economy. I am glad that the right hon. Gentleman addressed himself to this subject this afternoon. I am also grateful to him for introducing Clause 66 in which, within the terms of reference of a Minister of Housing and Local Government, he goes as far as he can once he accepts the general premises of the Bill, actually to safeguard planning administration.

But the right hon. Gentleman said also that he was an innocent Minister. I thought it was rather a naive proposal to introduce Clause 66 and to say that it was the final answer to the problem. Whatever the effect of Clause 66 is, inevitably there will be financial pressures from the central Government if the bills for planning compensation become exceedingly heavy.

Under the development plans which are published under the 1947 Town and Country Planning Act, every area of England and Wales will have a development plan, and people will thus know which areas can be developed and which cannot. People who have submitted claims under the 1947 Act and will be paid compensation as and when permission to develop is refused under the Bill, can, even if they have no intention ever of developing, submit a planning application which they know will be turned down anyway as a result of the development plan which has been published.

There is a danger, which I hope the right hon. Gentleman will watch very closely, of frivolous claims on the compensation scheme in the Bill because anybody who wants to raise some ready money and who may never have wanted to develop their land, may take the course of applying for permission although they know that they will automatically be refused it because they have already looked at the development plan.

I do not share the Minister's confidence in the readiness of any future Government to vote the money for planning compensation. That argument might easily have been used by the authors of the Road Fund, but we have long ago lost any sense of innocence about the Road Fund. When the present Prime Minister was Chancellor of the Exchequer he seduced the Road Fund, and I do not see that the Bill will necessarily retain its virginity for long. I have very little faith in the gentlemen in the Treasury when it comes to a matter of economic pressures. I have considerable apprehension about Treasury control. Very often the Treasury is not competent to judge an administrative decision about town planning. It is essential that the Ministry of Housing and Local Government, which has the necessary staff with competence to judge the problems, should have absolute control in the matter.

The Treasury consists mainly of a number of economists who are a type of economic weathermen looking out over the Atlantic Ocean to see when there will be a depression, and they are often wrong. I am prepared to use the Treasury as economic forecasters—I am willing to use them as 20th century versions of the Roman auguries and to examine their entrails in Whitehall in an attempt to foresee the future—but I am not prepared to hand over to them any opportunity of controlling or influencing planning administration in this country.

That is the first criticism that I make of the Bill. Whatever may be the safeguards of Clause 66, the Clause still does not answer the problem, and proof that the Minister himself is worried about it lies in the fact that he has seen fit to introduce Clause 66 and to utter the passage which he did in his speech.

My second criticism of the Bill is that, in the long run it is manifestly unfair. The hon. Member for Henley (Mr. Hay) said that he could not see the value of, or the reason for, collecting betterment. I will explain it to him. I am sorry that he is not in the Chamber at the moment, but perhaps he will collect the betterment of my speech by reading it in the OFFICIAL REPORT tomorrow. He ought to recognise that if monopoly land values are to be given to individuals under the planning schemes following the development plans resulting from the 1947 Act, some people will be able to say that, as their land is the only land in the area which will be built on, they have a monopoly and that, as land anywhere else cannot be built on, they will be able to charge whatever price they like.

The danger of exploitation of the monopoly was recognised by the Minister during the debate last year, when he clearly warned landowners who might exploit their monopoly that he would use powers of compulsory purchase if they did it too much. However, a great deal of injustice can be done in single isolated instances before the matter actually comes to the notice of the Government of the day.

It would be extremely regrettable if people were able to exercise for the purposes of their private gain the monopoly conferred upon them by the community. The object of the collection of betterment is to take the carrot away from the landlords and to ensure that no temptation is offered to such gentlemen. If the betterment is to be recouped by the community as a result of the community's plans—nothing could be fairer than that—such tendencies to use the monopolies conferred by the community are not likely to arise.

The second reason for the collection of betterment is that it is practical common sense. If we have a betterment levy or no development value resulting from agricultural land, there is, as I said just now, less incentive and pressure to sell the agricultural land for development. Under the credit restriction schemes introduced by the Chancellor of the Exchequer, the farming industry is having an extremely difficult time at the moment and many farmers are very short of ready capital.

If the monopolies conferred by the Bill exist and there is no provision for the collection of betterment, one of the best ways of raising ready capital is to sell off the land and get a short return in order to add a few cows to the herd, improve the farm buildings or meet some immediate charge on the farm resulting perhaps from a difficulty over a crop or from a desire to expand. But once that land is taken, it cannot be reclaimed for agriculture, and in the long run the community will be the sufferer, although the farmer himself may achieve a short-term gain. If there was a betterment charge, the problem would not arise.

The hon. Member for Henley said that betterment had never worked. It is true that betterment collection did not work under the 1932 Town and Country Planning Act introduced by the Tory Party of the day. However, the hon. Member for Henley should go further back into history. The Uthwatt Committee drew attention to the extreme efficiency of the Sea Defence Act, 1427. The Conservative Party ought to look a little more at the great traditions of the past. Looking a little further on, I find under the heading:

Therefore, the great traditions of the past are the answers of the political party of the past. I am surprised that the Conservative Party, in their hitherto unrelenting pursuit of ancestor worship, did not find these examples. It is probably because the joss-sticks had burnt so low that they were unable any longer to read the lessons of the past.

My third criticism of the Bill is exactly that which the hon. Member for Henley made. He said he was critical of the 1937 value being taken as the permanent value for all compensation. I put it in a rather different way. The hon. Member for Henley said he hoped that, in Committee, we should find a few loopholes in this Bill in order to help the landlords. I want to find a few loopholes in this Bill in order to help the community, and I think that the danger that arises from this particular provision is this.

It may be all right now, as 1947 was not so very long ago, that all claims for compensation, both under the 1947 Act and under this Bill, should date from the value of the land at 6th January, 1947, which was the day before the 1947 Town and Country Planning Bill was published. That date was taken because the theory is that land values have been in a state of turmoil ever since. As the years go by, we shall get away from the areas in which there were admitted claims under the 1947 Act and under this Bill, and we shall be concerned with areas in which there is no possible foreseeable claim under the 1947 valuation.

Therefore, the day will come when we shall be back exactly where we started. People will say that somebody is allowed to recoup the monopoly value of his land while somebody else is not allowed to do so, and that that is extremely unfair. People who are satisfied are usually quiet, but people who are dissatisfied are apt to be vocal, and a clamour may well be set up which will grow in intensity until, in the 'sixties and 'seventies, people will say, "This is all a lot of nonsense; away with it, because it is so very unfair."

We are dealing with a situation in which some people are allowed to use a monopoly which has been granted to them under certain planning powers in order to get the value of that monopoly for their own personal gain, while owners of other land of far better value are not able to recoup that value simply because of the arbitrary computation of the compensation resulting from planning powers. This will create pressure which will tend, in the long run, to be very detrimental to planning. People will say, "This is not worth it." There will be organised vocal minorities, as there was in the case of the betterment charge, and along may come a Government which believes in short-term expediency and is anxious to achieve political popularity and which will set the thing on one side.

The question to which the House must address itself is this, I think. If the problem is worth a solution, if the arguments used at the beginning of my remarks are tenable, if the country cannot have a successful industrial organisation without a serious replanning of its towns and villages, if it cannot have decent conditions in land use without effective planning control in order to see that houses are built in the right places, then it is quite clear that the Bill is inadequate and that it is necessary to take a much more positive step. On the other hand, if it is not worth it, we might just as well not be discussing this Bill at all.

In either case, it is exactly what the hon. Member for Henley said was not the case. The hon. Gentleman said that this was not a half-baked proposal, but, in my view, that is exactly what it is. It is neither one thing nor another, and the Minister, in his pursuit of political popularity, has approached the future solution of this problem on that short-term basis. Yet we ought to remember that every time one thinks of a new solution and finds that it does not work, there will be more people gathered round who will say, "It is not worth while trying in future."

The right hon. Gentleman is so bemused by this desire for political popularity that he must be seriously concerned about the danger of being overtaken by the growing popularity of the Minister of Food, who has now become the white-haired boy of the fur-coated women. Let we warn the Minister of Housing and Local Government. In his anxiety, he may well find that he will finish up by being known by future tenants of his Ministerial chair as a rather shabby procurer for a house of political ill-repute, and we all know what will happen then. The right hon. Gentleman will get the worst of both worlds. He will get the odium without providing the satisfaction.

6.45 p.m.

The hon. Member for Pembroke (Mr. Donnelly) said comparatively little about the Bill, though he dealt with a number of other matters of varying interest, such as the matter with which he concluded his observations. Whether he said comparatively little about the Bill because he did not understand it, like his hon. Friend the Member for Widnes (Mr. MacColl), was not altogether apparent. So far as the hon. Member for Widnes is concerned, 20 years or so ago, he and I used to share a room in the Temple as pupils of a distinguished counsel of those days, and we lived in amity and with mutual good will. It was not until I heard the hon. Member for Widnes attempting to read and construe this Bill this afternoon that I really understood why it was that he decided not to pursue the profession of the law, but, instead, to embark on the desperate alternative of immersion in Socialist politics.

This Bill is the fourth major Bill on this subject of town and country planning to be introduced in less than a quarter of a century, as well as several minor Bills. This is evidence, not only of the complexity of the problem and the difficulty of finding a satisfactory solution, but also of the keen interest of the Conservative Party in the subject of Town and Country Planning, since three out of the four Bills have been introduced in a time of Conservative or predominantly Conservative Governments.

Would it not be equal proof of the Conservative Party's lack of interest in the problem that they did not find a satisfactory solution the first time?

The necessity for this Bill arises out of the failure of the Socialist Government to provide the answer in 1947. Really, the hon. and learned Member for Leicester, North-East (Sir L. Ungoed-Thomas), in moving the Amendment, spent a considerable time in dealing with the necessity for planning land use, but that, of course, is not in issue. It is not only admitted but asserted from these benches that the planning of land use is desirable in the interests of the community, and this Bill seeks to give a more practical chance to the successful planning of land use on a better financial basis than was provided in the 1947 Act.

I view this Bill as a compromise solution. No effort is made here to arrive at a theoretically ideal solution to the compensation and betterment problem, because there is no effort to recover betterment. Instead, there are very severe limitations on the payment of compensation, and that is really the compromise basis on which this Bill proceeds. No doubt, my right hon. Friend is encouraged in this direction by reason of the failure of the financial provisions of the 1932 and 1947 Acts, both of which were based on an attempt at a theoretically ideal solution of the compensation and betterment problem.

The 1932 Act failed in its financial provisions, we are told, because the local authorities were inhibited in their planning by reason of the difficulty of collecting betterment, as compared with the liability of paying compensation. The 1947 Act failed because it proceeded on the assumption that all realisation of development value is betterment that ought to be recovered by the State, whereas part, at any rate, of development value is, or may be, created by the individual, and should be left to him and not recovered by the State.

By charging 100 per cent. development charge, all development values were treated as being recoverable by the State. For that reason potentially it was a very powerful deterrent to private development. The hon. and learned Gentleman said that there had never been evidence of the deterrent effect of the development charge. That may be true, but that was only incidental. It was due to the fact that there was a more and more immediate deterrent to development during the years in which the party opposite were in power, because of the operation of the Defence Regulations. The effect would have become quite apparent once that artificial phase had passed, and the 100 per cent, development charge would then have operated as a severe deterrent to the private developer.

Did not the provisions in regard to dead-ripe and near-ripe land cushion it off?

Yes, but they would not have prevented it from being a deterrent in the long run.

The Opposition Amendment refers to the effect of the Bill on future land use. but it was implicit in the speeches of hon. Gentlemen opposite that they cling to the fallacy that land-use planning, exclusively or even primarily is negative and restrictive. The positive aspect, the encouragement of desirable development, is at least as important as the negative aspect of restricting undesirable development. In so far as the 1947 Act with its financial provisions restricted desirable private development, it failed on the positive side of town and country planning.

We are in the position that although the 1947 Act has failed in its financial provisions, no constructive alternative has been offered by the Opposition. They have had to go right outside and to pursue the ideological remedy, the extreme remedy, of land nationalisation, as propounded by the hon. Member for Pembroke and the hon. Member for Widnes, although not openly endorsed by the Opposition Front Bench.

I have always thought that the ideal solution to the problem of compensation and betterment would involve the payment of the appropriate amount of compensation in respect of planning refusal, and would involve, in regard to betterment, the division of development value into its two component elements, that which is due to the action of the State or of the local authority and would therefore be recoverable as betterment, and that part which was due to the initiative and enterprise of the developer and would, therefore, be left to him. I must admit, as I have always admitted, that this would involve very complex machinery. Some hon. Members complain that the provisions of the Bill are complex, but we should require machinery considerably more complex, and rather more like our rating machinery, to bring about the result which I have suggested.

It is also right to say that in practice, ever since 1667, it has been found difficult or impossible to collect betterment. The cases to which the hon. Member for Pembroke referred, with his customary ingenuity of historical recollection, were specialised and local. The cases in the 17th century, at the time of Charles II, were localised. Whenever betterment was sought to be collected on a nation-wide scale, the attempt has failed in practice.

Is it not a fact that if we put up sea defences which protect land we can claim betterment from the landowner?

That is a comparatively simple operation, compared with attempting to collect betterment from the creation of development value, which is much more complex in practice. It is not easy to collect betterment, because of the administrative complications of any effort to do so on a big scale, and there is a lack of any convincing precedent for the possibility of doing so.

I was rather struck by the fact that the hon. and learned Member for Leicester, North-West made many references to the desirability of collecting betterment but did not volunteer any suggestion of a method by which it could be recovered. There is common ground that it is necessary to pay compensation on refusal of planning permission. The basic theory of the Bill is therefore to provide an entitlement to compensation; but, as there is no fund available from the collection of betterment to help to provide the compensation, it attempts severely to limit the payment of compensation in practice so as to avoid a burden on the Exchequer and prevent the inhibition of planning control. That seems to be the underlying theory of the Bill.

There are two dangers arising from that approach. The first is: Will the code of compensation prejudice the planning work of the local planning authority? Attention is drawn to that danger in the Opposition Amendment. The second danger is: Can the code operate without imposing injustice on private interests, and impracticability on the operation of the free market in land? As to the first of those dangers, the liability to pay and the entitlement to receive compensation are limited by three main provisions. First of all, there is the limitation of confining the compensation to the unexpended balance of the established development value, a phrase which worried the hon. Member for Widnes but merely means what is left of the admitted Part VI claim. The second point relates to compensation, under Clauses 23 and 24. The third point is the power of the Minister to review decisions.

As to the first of those matters, anchoring compensation to what is left of the admitted Part VI claim, there are many things which limit compensation in regard to land. First of all, there is the matter touched upon by the Minister of people who would have had a claim to compensation if only they had made a claim. We know from Sir Malcolm Trustram Eve that there are many of them. All those people are out, and their compensation is payable to the State. So are all those others who established a development value, but are excluded by the so-called de minimis provisions of the 1947 Act.

In addition to those obvious cases, the main limitation arises from the operation of the formula for establishing development value under the 1947 Act. That value is arrived at by subtracting the so-called "restricted value" from the so-called "unrestricted value." The important thing to have in mind, from the point of view of the extent of the potential liability of the Exchequer, is that "unrestricted value" in that context does not mean what it seems to mean. It does not mean the value which the land has for development. It only means the value which the land would have had for development if the 1947 Act had not been passed, not if there had been no planning control at all.

Therefore, we have to take into account, in assessing unrestricted and development value, first of all the operation of previous planning control under the 1932 Act, or indeed any of those previous Acts catalogued by the hon. Member for Pembroke. If, under a scheme or draft scheme under the 1932 Act, that development would not have been allowed, then of course it is not included in the unrestricted value or in the development value for the purposes of the Part VI claim, and no compensation will be paid in respect of a refusal of planning permission for that development. To take a practical example, if land was already zoned in the 1930s as green belt land, then there would be no development value under the 1947 Act because at the appointed day under that Act the development would have been impracticable.

In that case, what happens if the planning happens to be changed in the green belt area and if the part which was previously green belt and open space becomes industrial and residential?

There the hon. Gentleman is arguing against himself. That would be very bad luck on the private interest, if permission was refused. So far as the limitation of compensation is concerned, the development value is restricted not only by previous planning control, but by any private inhibitions that there may be on development, such as restrictive covenants, and the like, and by all the licensing restrictions operative in 1948, as well as by the ordinary market difficulties.

That is why, even though the 1947 Act made the cardinal mistake of not insisting on intention to develop as well as the practicability of development in order to qualify for a Part VI claim, the total admitted claims only reached the neighbourhood of £300 million.

Now a word as to the second limitation, that is to say, the limitation contained in Clauses 23 and 24. Clause 23 is very wide in its scope. First, there are two main categories of development under the 1947 Act as defined in Section 12 of that Act. There is first, the carrying out of operations on land, and, second, the making of a material change in use. The second of these categories is excluded straight away from the receipt of compensation. In built-up areas the main aspect of planning control is the control of land use in respect of which no compensation has to be paid. Therefore, it is quite apparent that in built-up areas planning control is retained unvitiated by the compensation provisions of the Bill.

Clause 23 (2, a ) has the effect of excluding compensation for the imposition of limitations on density of development. Subsection (2, b ) similarly excludes compensation for any restrictions on dimension, that is to say, on size. What does that mean in practice? It means that if a planning permission is sought for the purpose of developing a private housing estate, permission may be given, but the condition as to density may be such as to render it a quite uneconomic proposition. No compensation will be paid because a planning permission has been granted conditioned by a density provision from which compensation is excluded.

Let us take the other case where a planning application is made to erect a factory, block of flats or a block of offices. The planning authority gives permission, but places a condition upon it limiting the site coverage or what, in the jargon of these matters, is known as the net ratio of floor space. That makes it uneconomic, but no compensation is given because a planning permission has been given limited as to dimension, and compensation for that is excluded from the Bill.

Finally, under these Clauses, there is the exclusion from compensation of conditions as to use to which my right hon. Friend has already referred. What is the effect of that? Supposing an application is made for planning permission to erect a factory in an area zoned in the development plan as a commercial zone, an office zone or a residential zone.

The planning authority, let us suppose, gives permission for the erection of the factory, but applies a condition as to use, saying that it shall only be used for a use conforming to the one prescribed in the development plan. Is compensation then recovered? Presumably not, because planning permission has been given, limited by a condition as to use for which no compensation is recoverable. The only other sort of zone in which application would be made is an industrial zone; but there compensation will not arise because there is no reason why planning permission should not be granted. The only problem arises where there is zoning for an open space; and even there it is not beyond the bounds of possibility that a planning authority might give permission for the erection of a building, putting on a limitation as to use which would have the effect of excluding it from compensation.

The third matter concerns Ministerial review under Clause 29. I do not know whether hon. Members appreciate what that means in practice. Under subsection (3) of that Clause compensation can be excluded by the grant of a planning permission for a development for which the applicant has not asked and which he does not want. There could hardly be a more extreme form than that of exclusion from compensation. Therefore, from such study as I have been able to make of the Bill, I venture to say that, having regard to all these considerations, in my view the incidence of compensation under this Bill will be much less than is generally anticipated and feared by hon. Members opposite.

With regard to paragraph 27 of the Financial and Explanatory Memorandum, I was rather startled when the hon. Member for Widnes said that a barrister was totally unable even to understand the Memorandum. I feel that such a barrister must date back to the days—

—when the sole condition of entry to the Bar was the eating of dinners, and before the introduction of the examinations. It was a mistaken idea of progress to introduce the second qualification into so cogenial an occupation.

Paragraph 27 of the Memorandum is cautious about the financial implications, but says that at the outset payments will be heavy. I do not think they will necessarily be as heavy as the Memorandum suggests, for the reasons I have given. What is clear is that the total sum of compensation payable under this Bill must be far less than the £300 million which hon. Members opposite were prepared to pay even to those who had no intention of developing at all. If the smaller sum—and this is the dilemma of the Opposition—which has to be paid out under this Bill is going to have such dire consequences on planning, how on earth could they ever justify voting the payment of £300 million under their own Act?

My conclusion with regard to this possible danger which is stressed in the Opposition Amendment is that the Minister has foreseen and probably successfully guarded against the danger of compensation to planning control. Then there is the risk of the second danger—the possibility of injustice to private interests and the effect on the free market in land. I hope that it is clear from what I have said that the exclusions from compensation contained in Clause 23 may in practice make many hard cases when the Act is in operation.

I say nothing about the special case of minerals, because we shall have to await the regulations to get a clear view. As regards limiting compensation to admitted Part VI claims, I spoke, in the debate on the White Paper, of what I thought to be the basic disadvantage. Broadly, it is that, for an indefinite period to come, compensation will be limited by calculations made in 1951 or thereabouts, of what the development value was in 1948, calculated by reference to prices in 1947, and based on the interpretation of possibly imprecise planning proposals, probably formulated between 1935 and 1939.

The House will appreciate what I mean when I say that this is not an attempt at an ideal solution, but a compromise. It has the great disadvantage that the history of the last decade or so has shown how much valuation, and all that goes with it, is bedevilled by the taking of arbitrary dates. We have had it in the war damage Act, and others which proceeded on the same basis. None of them have turned out to be satisfactory in practice.

In practice, the more we go into the future the more land there will be with development value, but without an admitted Part VI claim, because in 1948 it could not satisfy the formula. There will, therefore, be less compensation, which is good for the Treasury and bad for the Opposition's case on this Amendment. At the same time it may cause injustice, and it increases the likelihood of those two unrelated markets in land to which reference has already been made in the debate.

It is true that experts view this aspect of the matter with some misgivings. In March, 1953, shortly after the White Paper—rather as a Saul among the prophets—I initiated a discussion on this subject at the Royal Institution of Chartered Surveyors. I was followed by Mr. Bull, a member of the Council of the Royal Institution of Chartered Surveyors—a genuine expert. He pointed out the difficulty that would arise from the incompatibility between the two markets. He said: I hope that that was perhaps a little over-pessimistic but the same danger is stressed in "The Times" today, in the passage read by the hon. and learned Gentleman, where it says:

May I reiterate my view? The Government have preferred a compromise to an attempt at a theoretically ideal solution. I accept that approach, not because I would not prefer an ideal solution were it workable but because I feel that the question turns so much on administrative considerations which no one except those at the heart of administration are in a position to assess.

There is a possible double danger. First, that the work of compensation may prejudice the work of planning authorities; and second, that it may unjustly affect private interests and prejudice the operation of the free market in land. I think the first is a lesser danger than the second, by reason of the many provisions in the Bill to guard against that.

This is a subject about which only a person knowing very little would be dogmatic. I am not dogmatic, but that is my view. I think that it is impossible, as yet, to say whether the Minister will succeed where Sir Edward Hilton Young and Lord Silkin failed, in establishing a permanent satisfactory basis of compensation. In adopting a compromise solution he follows his personal tradition of the middle way. There is a further good augury in that the technique of legislative compromise on difficult questions has, ever since the reign of Queen Elizabeth I, established some of the most enduring settlements of difficult and controversial questions. Therefore, while not minimising the difficulties contained in the Bill, I believe it to be, in substance, a good Bill, and I shall do what I can to support it.

7.15 p.m.

I am sure that the House will have enjoyed the very lucid exposition in defence of this Measure given by the hon. Member for Hertford (Mr. Walker-Smith), just as we used to enjoy his contributions during the passage through this Chamber of the 1947 Act. I used to think that the hon. Member, together with the hon. and learned Member for Northants, South (Sir R. Manningham-Buller) now the Solicitor-General, were then the only two hon. Members of the Opposition who really understood the 1947 Act. Certainly, the hon. and learned Member for Hertford has today proved his mastery of the subject.

Most hon. Members intervening in this debate will realise that they are entering into uncharted waters and can easily be wrecked on the hidden rocks of this subject. I do not pretend to the easy mastery which I thought the hon. Member for Henley (Mr. Hay) earlier assumed. I doubt whether I would have ventured at all except that there are a number of points closely concerning local authorities with which I am connected—the London County Council, of which I am a member, and, in my own constituency, the Urban District Council of Hayes and Harlington. They have desired me to have put these matters in order that some of the difficulties of the Bill may be cleared up when the Attorney-General replies to the debate.

I do not assume—as the hon. Member for Henley, and, indeed, the Minister assumed—that there was an obligation on the Government's part to scrap the financial provisions of the 1947 Act. I am certainly not in agreement with that. I think they made out no case in the White Paper debate or since. Most of the points made in the White Paper could have been answered. It is said that the once-for-all payment of £300 million would cause inflation. A formula could be adopted easily to prevent that as it was, for example, in the payment of post-war credits.

Nor do I think it a strong argument that there would have been anomalies in the £300 million scheme. There will be equally, I am quite certain, anomalies as a result of this Bill. A number have been given to the House already. Particularly will this be so in connection with the provision of compensation by local authorities. We shall not only see anomalies now, but in future they may appear very thick upon the ground. The Minister and others spoke about "unscrambling" the financial provisions of the 1947 Act. I have never yet come across anybody who has attempted to unscramble an egg and got satisfactory results. I think the Minister's present attempt will have a like fate, and that many unfair anomalies will result.

Local authorities have two fears. One is bow far the efficiency of planning machinery will be influenced by financial considerations—how far its effectiveness will be diminished. Secondly, how greatly their financial burden will be increased. This afternoon the Minister has said that he thought that in the long run local authorities would gain. He made that point during the Committee stage of the interim Town and Country Planning Bill which became an Act in 1953. On 16th December, 1952, he said:

I now want to refer to Part II of the Bill, and to deal with the question of the extent to which the proposed arrangements will be detrimental to good planning. The Minister has realised that he is a little vulnerable in this respect. Under Part II he has the power to review decisions when a local authority has refused permission to develop land, or has granted permission subject to onerous restrictions. In those cases the Minister can reconsider the decision of the local authority, and has full power to reverse it.

It was put to him that he might be driven by financial considerations—by pressure from the Treasury—to reverse a number of claims. It will be automatic for landowners to lodge claims if they are refused permission to develop. They will be very foolish if they do not. Every landowner who cannot develop as he wants to, or who can do so only with restrictions, is bound to lodge a claim. The Treasury will bring very strong pressure to bear upon the Minister.

The Minister has said that he did not introduce this Bill on economic considerations but only on planning grounds, but I remember what he said in Committee on the Valuation for Rating Bill a few months ago, when he was asked if his valuation proposals would work. He then said that he would leave it to the valuation experts to do the job because

Local authorities are also a little apprehensive that the new procedure will lead to a good deal of delay. The Bill will introduce at least one other stage into the arrangements, compared with what existed under the 1947 Act. Local authorities feel that this delay will make planning more difficult and to some extent bring planning authorities into disrepute by the delay. I hope that we shall be assured that everything will be done to speed up applications and the decisions of the Minister, but the Bill provides one more link in the chain which has to be forged, and it may have unfortunate consequences.

Local authorities may well suffer financially through the proposal to abandon the £300 million global sum, particularly in relation to the serving of purchase notices under Section 19 of the Town and Country Planning Act, 1947. I understand that when local authorities saw the Minister he gave an undertaking that it was certainly not his intention that an owner who was refused permission to develop land should, by serving a purchase notice, unload his land upon the local authority.

I understood that the Minister gave two undertakings in this connection. The first was that an endeavour would be made to remove the doubt as to the operation of the purchase notices under Section 19. The Minister said nothing about that tonight, and I hope that something will be said by the Attorney-General. The second undertaking was that the Bill would define the phrase, "reasonable beneficial use." Local authorities have had very considerable diffi- culty in this matter, and will continue to do so if they are served with large numbers of purchase notices, and this phrase is not authoritatively defined. It may be that an endeavour has been made to find a definition for "reasonable beneficial use," and that it has proved impossible, but if that means that local authorities and private developers have to rely upon case law it will not be very satisfactory for the developers, public or private, although it may be good for the lawyers.

I hope that it will be possible to consider this point in Committee, unless the Attorney-General can give us some reasons for not including this definition in the Bill. Owners who find it difficult to get compensation from the Minister are bound automatically to serve purchase notices upon local authorities. It should be noted that if such notices are confirmed owners will obtain payment not only for the existing use value, but for the unexpended balance of the claim as of right. Local authorities will have this rather heavy compensation to bear and, at the same time, may be forced to acquire land which they do not want. This is discrimination against local authorities to a very high degree, and it is not warranted by the facts.

Part IV of the Bill deals with retrospective payments, and provisions for recovery from local authorities of payments made by the Central Land Board to persons holding claims on the £300 million, whose land has been acquired before the Bill becomes an Act. Certain exceptions are contained in Clause 55, but it is rather tough on local authorities such as the London County Council, who prepared its development plans on the financial provisions contained in the 1947 Act, to have to bear the burden of making these retrospective payments. It will certainly involve the London County Council in hundreds of thousands of pounds, and although the amount involved will not be so large in the case of a smaller authority like Hayes and Harlington Urban District Council it will be a relatively very heavy one.

Local authorities are in no way to blame for the altered circumstances. They could not foresee this liability when they made their plans under the financial arrangements contained in the 1947 Act. The Government are attempting to unscramble the provisions of that Act. but, as I pointed out earlier, this operation has never been achieved in normal life. If the Government are determined on this course local authorities ought not to pay the price for the Government's changed decision.

Did those local authorities make no provision for the possibility of having to pay a development charge?

Local authorities made provision in the light of the financial liabilities as they understood them, but they have not made provision for the sum which they are likely to have to meet under the Bill as it now stands. Those authorities with whom I have discussed it are convinced that they will have to pay very considerably more than they were liable for when they made their development plans.

Part III raises the question of interest payments on the new basis of compensation for the future purchase of land by local authorities, whether such land is acquired compulsorily or by agreement. One component part of the compensation is now to be a supplement of one-seventh of the balance of the admitted claim, which represents interest at 3½ per cent. from 1947 to June, 1954, less the standard rate of Income Tax. Local authorities feel extremely grieved about this. Under the 1947 Act the interest payments were expressly made the liability of the Government. There has been a complete break with that arrangement, and we have had no justification for it.

Again, it is true that five years have passed, but that is not the fault of local authorities. The delay is due to a change in Government policy. We can argue, as some have argued, whether it is a wise change or not, but at any rate it is very unfortunate that local authorities should have to shoulder this heavy burden, which is in no way their fault.

There has been a tendency by some hon. Members to talk of local authorities as if they were some artificial bodies, a kind of ogre sucking the lifeblood of the community. In fact, they merely represent us in the area in which we happen to live and there is no reason why a local authority should be treated unfairly any more than there is for anyone else to be treated oppressively. I think there has been discrimination in all these matters which is not justified and is certainly not logical.

In conclusion, I would comment on the principle of uniformity of compensation. I should have thought it would have applied equally to all. In Part II the Minister has an elaborate code whereby he can exclude all kinds of compensation payments. That may be right. I think we must examine it very carefully in Committee. But in Part III the local authority has not such provisions to exclude compensation payments and I should have thought that a principle of the Act, if it were to hang together, should be that compensation payments should be made on the same basis by everyone. I hope that something will be said about the justification for this distinction, if there is one.

I do not want to go into the wide questions of betterment, but the hon. Member for Hertford said that we had not suggested how betterment could be collected nationally in these days. It is worth while putting on record that betterment is collected in the case of New York, of Sydney and of Nairobi by taxing site values. It has been done perfectly satisfactorily, and although it is not part of the duty of the Opposition to explain how these things could be done, I must point out that the collection of betterment is working in practice, and in the case of New York it works for seven or eight million people. From the investigation which I made when I was there, it has worked satisfactorily and the community has obtained some of the results of the community's effort.

I hope that some of these points will be considered in relation to the position of local authorities so that they may feel that they will not be placed under a heavy financial burden without any proper justification.

7.33 p.m.

I am most grateful to you, Mr. Speaker, for providing this, for me possibly the only, opportunity of expressing my views, quite briefly, on this Measure. In the 15 years or so in which I have had the honour of sitting in the House, I have never missed sitting on a Committee dealing with town and country planning legislation, but because of the accident that the Scottish Grand Committee is, as I gather, to be sitting simultaneously, I shall not be able to sit on the Committee which will consider this Measure. I am all the more grateful, therefore, to be able to speak very briefly this evening.

Like many hon. Members, I have done a good deal of homework on the Bill. I found the Bill a very welcome companion upon the occasions when many of us were compelled to sit here through the night, last week and the week before—a fascinating exercise in putting down all the cases of which one had thought before the Bill was introduced and following them through to discover exactly how they would be treated. One felt rather like Mr. "Soapy" Sponge, of Surtees fame, who, with his pocket book, used to set himself little problems in the running of the horse omnibus routes across the Metropolis.

I do not propose to go into the somewhat arid wilderness of these difficulties except to say that I was unable, in all the nights spent on the Bill, to discover a single case which did not seem to be dealt with, by and large, satisfactorily. I join with my hon. Friend the Member for Henley (Mr. Hay) and others who have paid tribute to the draftsmanship of the Bill. Of course, it is complicated. Any Measure which sets out to put right the financial provisions of the 1947 Act was bound to be complicated if even rough justice was to be done to individuals. I want to pay my humble tribute to the Minister and his staff at the Ministry.

It would be possible, and, indeed, rather fun, to make a long speech about this Bill, but many hon. Members want to speak and I therefore do not propose to make a long speech. I will deal, instead, with three specific points—first of all, to give a justification for using 1947 values in cases where land is to be acquired compulsorily; secondly, to make a plea for the reopening of excluded cases; and thirdly, to give my view, briefly, about betterment, a subject to which reference has been made by the hon. Member for Hayes and Harlington (Mr. Skeffington) and many other hon. Members.

First, about 1947 values: the House knows that when land is to be acquired compulsorily in the future the basis of compensation is not to be the current market value but the value as at 1947. That is roughly the position, and I need not go into detail upon it. There are many refinements to it. Let us look at this basis of the 1947 value and consider whether or not it is justified. Many of my hon. Friends urge that 1947 values are already far out of date and that they will be far more out of date in 1960, 1970 and 1980. They argue that we have already seen the disadvantages of pegging values in legislation dealing with war damage, rent restrictions, rateable values and other subjects.

I suppose it is true to say that whatever else the 1947 Act did, it showed how unfruitful was an attempt to force upon the land market a notional theory of land values. Many of my hon. Friends will say—and I would not disagree with them—that compulsory acquisition, when we put aside all the chances of bargaining and coming to an agreement between owner and authority, is the equivalent of expropriation and as such ought to be compensated in full at full market value.

I do not take that view. The arrangements proposed in the Bill are, in my opinion, justified for three or perhaps four main reasons which I should like briefly to give to the House. First, the valuations are already made, and to depart from the valuations which have been made and agreed, sometimes with great difficulty, with the district valuers of the Inland Revenue would be to place a large unknown future burden upon the taxpayer which would itself not be an advantage. I am led to think that such theoretical injustice as there may be in basing compensation for compulsory acquisition upon values back in 1947 is outweighed by the administrative convenience of being able so to do in view of the fact that these values are already made and agreed.

But I am not so sure about the theoretical injustice of the business. Ever since the 1947 legislation, landowners have not expected any more. Indeed, when it was found that the claims on the £300 million came in total to £350 million, most people expected that the agreed claims would be written down by 4s. in the £ instead of being met in full, and with added interest.

Thirdly, all transactions which have been carried through since 1947 have taken place in the knowledge that increased land values would be taxed; that in so far as the increments in value will stem in large measure, as the hon. and learned Member for Leicester, North-East (Sir L. Ungoed-Thomas) pointed out, from the impact of the development plans upon the surrounding land, there seems to be no valid reason why the owners should be recouped for the loss of increments which have, at any rate, to some degree been created by the community.

For these reasons, I would not myself depart from a solution of this vexed question of compensation and betterment which is admitted, I think, to be a compromise between the two extremes, on the one hand, of compensating owners at full market value, and, upon the other, of giving them no compensation at all. In politics compromise is not seldom the surest wisdom. And so if, as I believe, this one facet of the legislation now before us forms part, or is to form part, of an agreed settlement of the age-old problem of compensation and betterment, then I myself would not want to upset it.

I think that a stronger argument is that the coins in which compensation may be paid may very well be worth a good deal less or, indeed, a good deal more when the time comes for the payments to be made than they were in 1947. For example, in 1945 if the value of the £ was taken at 100, the value in 1947 was 91 and in 1952, 68. I think that it ought not to be impossible to devise a scheme whereby percentage increases or decreases in the value of the £ might be certified at, say, five-yearly intervals.

I should like to see a court or commission, perhaps presided over by the Lord Chancellor and consisting otherwise of experts, who were independent of the Government of the day, set up to examine the facts and make their adjudication as to what the value of the £ is at the time, and that any adjustment, not being less, I suggest, than 5 per cent., either upwards or downwards should be made to the 1947 values for the next quinquennial period. I believe that that would resolve a lot of the difficulties, and I urge the Government to look at that possibility.

Is the hon. Member suggesting that we should tie the value of land to the cost of living, or something like that?

No, not to the cost of living—to the value of the £. If we are to pay out on the basis of 1947 values, I think that the hon. Gentleman will see that there is some justification for making a five-yearly assessment in relation to 1947, and then bringing the value up or down, as the case may be. That might go a long way towards achieving a basis of justice to the person who land was being acquired or to the State who may be acquiring it.

Let me pass on to the question of excluded claims. Those who did not claim under the terms of the 1947 Act for loss of development rights include, I think, broadly, three classes of persons. First, those who were not required to do so in respect of their occupation of land. I instance the case of charities who, under the terms of Section 85 of the 1947 Act, were not required to claim at all. It is quite possible that land which was then, and perhaps is still, used for purposes in connection with a charity, will cease to be used for such purposes. It may become available for development, and may be the subject of a notice to treat by a public authority. It will then have to fall back on the provisions of the Bill.

I mention that only as an example. I believe that such a case is dealt with; at least I hope so. I mention that as one category of persons who are not required to claim, and there are other people whose claims fall under the de minimis provisions of Section 63. I remember reading somewhere—I believe it was authoritatively stated—that the de minimis provisions of the Act ruled out claims amounting to £240 million.

Thirdly, there were those large number of persons who thought, quite wrongly, that the global sum was so inadequate that they ought not to make any claims upon it. They thought that their claims would not be worth while. I know some who felt for reasons of conscience that there was no reason why they should claim and they would rather not do so. The Minister has made it clear that the Bill provides that payment out is to be made only where there is an established claim, and that if there is no established claim there is to be no payment out above the existing use value, if the land is compulsorily acquired.

I should like the Minister to look again at that position. I do not suggest that these claims should be reopened now. There would be no point in doing so. It would be fantastic for us to suppose that it would be worth while making an enormous number of valuations at 1947 values if only a very few of the cases might fall to be compensated in those terms at all. But I do ask that where a compulsory purchase order is served in any case in which there is not an admitted claim, it should be possible to consider that claim again to see why it was not admitted and whether it is not possible to do so now. If my proposal for quinquennial adjustment figures has been adopted, and such an adjustment figure has been made, the valuations could quite readily be adjusted to relate them to 1947 prices.

Finally, I should like to say a word about betterment. The Labour Party really are living in the past. They often say that we are. But, by heaven, look at the way they come forward on this question of betterment. The hon. and learned Member for Leicester, North-East said that betterment is the crux of the problem. The hon. Member for Pembroke (Mr. Donnelly) said that no long-term solution to the problem of compensation and betterment can be found. In 1952, hon. Members opposite put down their reasoned Amendment to the Bill then under consideration and complained that it provided development charges were simply a device for ensuring that some profit from betterment went back into the public coffers.

I have said this, or something like it, before and I say it again. The high incidence of taxation upon successful development—not unsuccessful development—has to be borne by the developer. The man who is successful in building a factory, building his own house, or developing a housing estate, finds that the profit, or income, or whatever it may be, from that successful development is brought back in a very large degree by the incidence of high taxation and rating into the public coffers.

I maintain that the high incidence of taxation upon all successful development in these days is sweeping away or, has swept away, all the old arguments about the need for betterment to balance the compensation because almost all that betterment goes back—in far greater degree than it has in the past—to the public coffers.

The hon. Member and I are interested in planning and in local government. I am a member of Hertfordshire County Council, which built a by-pass road. The land on either side of the road was worth £40 an acre but, when the road was completed, the land bought by the county council to make the road was sold at £400 an acre. Where is the development there?

Of course if the man who makes a profit out of the land is a developer who sold the land at £400 an acre he would be taxed on the profit; if he died the payment would be made through Estate Duty. In every way the money is caught up.

It is a great pride, privilege and enjoyment to me to sit with the hon. Member for Wellingborough (Mr. Lindgren) on the Executive Committee of the Town and Country Planning Association. He and I believe in planning. The kind of planning in which we believe is that which safeguards good farmland and a green belt round a town. We want to see more of that kind of planning. We believe in providing adequate space around houses, in seeing that there shall not be too great density of population and that there shall be dispersal from congested areas into the countryside.

I do not believe that a single one of those things will suffer in any degree because we have failed, in this legislation, to make provision for a separately earmarked betterment fund.

7.55 p.m.

I agree with the Minister's description of this Bill as a complicated Measure. That is not to say that one would agree with all the assumptions of the right hon. Gentleman, but this Bill is undoubtedly highly complicated and very difficult of comprehension. One thing stands out clearly above all others—that it is an attempt to unwind the main principles of the 1947 Act. We know, however, that the 1947 Act was the only attempt that has been made to collect for the community the betterment value in land which the community itself has created.

The right hon. Gentleman complained that the principle of the development charge, by which the community recouped for itself the betterment value, had failed. I am not sure that that was so. The way in which the principle of development charge was applied was very largely responsible for what was considered to be its failure. If, instead of insisting on a collection of 100 per cent, of the development value of development projects, a variable percentage having some close relationship to the type of development which a developer may wish to pursue, could have been decided upon—if it had been more flexible in application—I think it would have stood a greater chance of success. However that may be, the principle of the development charge has now been extracted from our law and we go back almost to the position of the status quo ante.

It is quite true that the 1947 Act did contain other planning proposals and machinery for planning which have proved of great value to the country, but in relation to the principal purpose for which that Measure was designed this Bill takes us back to the status quo ante. We are reverting once again to the principle that a private person is entitled, without expenditure of any capital, or without any thought or organisation on his part, to receive increments of value on his land, although such increments have been created for him by the community and not by himself. We on this side of the House believe that to be fundamentally wrong.

This Bill is designed to perpetuate that principle. We, therefore, believe that the Bill is not in the general interests of the community in that very essential respect. I am very glad that we have tabled an Amendment, upon which we shall vote this evening, which once again affirms the right of the community to receive the betterment value which its own activity creates, upon land held by private persons.

I listened with very great interest to what the right hon. Gentleman had to say, and I should like to say a few words on one or two points that he made. The right hon. Gentleman said that the new compensation to be paid out of claims for development value was to be paid out on the basis of claims already admitted. He went on to say that there were quite a number of people—mostly small people—who had made no claim upon the Central Land Board for loss of development value as a result of the 1947 Act. That is quite true. There are quite a number of people up and down the country who for one reason or another have not made such a claim.

But I do not think it is fair or just of the right hon. Gentleman to ride off and say, "They have had their chance, and the closing date has been postponed on many occasions over a period"—I think he said six years—"and they have not bothered to make a claim. It is their fault, and we cannot do anything about it." What is the position now? What are the local authorities, who are going to purchase land for one purpose or another, going to do? They may very well desire to purchase land from small people who have not made claims against the original compensation fund.

Has the local authority to acquire that land at its existing use value, and in another case, where the claim has been made and admitted, will it have to pay the use value plus the development value plus interest for six or seven years? I think that in equity and in justice that is very unfair.

Does the hon. Gentleman realise that that is exactly what was happening under the 1947 Act, and if this Bill had never been brought in what he has described would go on happening?

I am not so sure that that would have been the case, because a good deal of revision was necessary as a result of experience gained, which we on this side of the House admit. An amending provision would have had to be introduced in any case, but we are dealing with the position as it now is, and the right hon. Gentleman and his party are in the seat of power.

What I have outlined is a problem that will face a good many local authorities. It would not affect a private sale because the position would be very different, and, therefore, I feel that in cases where no claims have been made against the Central Land Board, especially where they apply to very small people, steps should be taken to treat them in exactly the same way as any other owner who made a claim and got it admitted.

Why should the right hon. Gentleman expect local authorities, in addition to paying the use value plus the development value on the allowed claim to pay a cumulative amount of interest on the development value over the past six years—I think the right hon. Gentleman said an additional one-seventh. That, apart from increasing the cost of acquiring land, is very unjust on the local authorities, as it was not their fault that the paying out of these claims was withheld for so long.

If fault attaches to anybody it attaches to the Treasury, and I think it should pay for its errors and admit its liability and responsibility for them. But I certainly do not think it right to put it on the local authorities. It may be a very convenient way of pushing it off, but I believe that to be an injustice, and that the local authorities should not be saddled with responsibility for this cumulative interest on the outstanding claims for development value.

Then the right hon. Gentleman went on to deal with the question of compensation for restrictions on development as a result of planning proposals. He said that the power to determine development remains in the hands of the local authorities, but I think the right hon. Gentleman ought to qualify that statement very considerably, because Clause 29 takes the power completely out of their hands and places it in the hands of the right hon. Gentleman. He has the power to override a decision of any local authority, and I think we wish to know on what grounds he would act. Most local authorities now have development plans. Their localities are properly planned for developments of varying types and kinds. In certain areas industrial development is permitted, in others shopping and business development, and other areas are to be retained as open space.

If a local authority receives an application from somebody to develop land to provide a factory or a "pub"—the right hon. Gentleman mentioned a "pub"—and finds, on examination of its development plan, that this particular land is planned as an open space, it will say, "No, we cannot permit the erection of a 'pub' on this site because it is planned as an open space. The 'pub' should go to the area which is planned for shopping and business premises." So the local authority will turn down the application.

It will then be referred to the right hon. Gentleman, but he might turn round and say, "Here is a piece of land on which the local authority wants to grow geraniums because it is planned as an open space. The owner wants to put a 'pub' on it, and if I do not allow him to do so it may cost the Treasury £12,000"—

The instance that I gave was where a plan had not been approved. The hon. Gentleman is speaking of the powers conferred on local authorities to make plans and restrictions, but these have to be approved in general and in particular in every case. There is no difference in the powers of the Minister.

I do not think that the right hon. Gentleman understands my point because I am talking now of a development plan which has been approved by the right hon. Gentleman.

The hon. Gentleman says that the Minister approves the plan and disapproves action taken under it.

I do not know whether we are at cross-purposes here, but I am referring to the development plan—

—which goes to the right hon. Gentleman from the county planning authority. General approval is given to the use of this piece of land as an open space. Somebody comes along and says that he wants to put a "pub" on it. He cannot do that because the development plan has scheduled it as an open space.

In that case the Minister, having approved the plan, would support the local authority.

If the right hon. Gentleman had put it in that way when he addressed my hon. Friend the Member for Ealing, North (Mr. J. Hudson), I should have appreciated that view and would have supported him, but he gave me the impression that he preferred the "pub" to the geraniums because otherwise it would cost him £12,000. I thought that was an insight into the way the right hon. Gentleman would deal with all these claims for compensation under planning restrictions if he and the Treasury looked at them all from that angle.

There is a great problem in congested areas, particularly in and around London. Perhaps, if I give an illustration as it affects my constituency, I shall more clearly bring home to the right hon. Gentleman some of the financial implications involved in paying compensation for planning restrictions. My constituency is a heavily industrialised area where there are more than 500 factories of one kind or another. It is short of open space, and the housing problem is serious. There is a development plan for the borough of Acton and in it we have zoned certain areas as open space, others as residential and others for industrial and shopping and business premises. It follows inevitably that this plan proposes a reduction of the industrial concentration in the borough because, until we can effect the decentralisation of industry there, we shall never solve our housing and other problems.

It really means that if that plan is to be put into operation, industries and factories now in areas town-planned as open space or as residential will have to move out of those zones. That will be an exceedingly costly business. When the local authority is faced with this position, as it is from time to time, where the owners of a factory in such an area want to move out and to sell, and somebody else wants to buy but does not want to continue that kind of use, if on the application for a change of user the local authority enforces its powers, as it would have a right to do, and refuses to consent to the change of user because the area is town-planned as open space or residential, an appeal will be made to the right hon. Gentleman. What will he do in such a case?

It will mean that if he refuses to approve of the change of user, he will be met immediately with the question of compensation. If he approves, he violates the development plan. If a local authority wants to remove a factory or a small industry from an area which is planned as residential or open space, it cannot do that without having to pay the full market value of that industrial enterprise. Therefore, the right hon. Gentleman will be faced with the financial liabilities which the local authorities have not been able to meet if he is now going to carry out the provisions of development plans. He must pay the heavy compensation for the displacement of industries in congested areas, or else permit them to remain and agree to the change of user from time to time, or even agree to extensions.

For instance, in some of the areas now zoned as open space and as residential there are interspersed, almost like currants in a bun, many industries that must be moved into the industrial zone. Many of those industries have land attached to them for development and extension and, if the owners come forward to a local authority, and say, "We want to double the capacity of our factory" and the local authority says, "You cannot do that because this area is planned as an open space or as residential," and refuses the application for extension, the owners can then appeal to the right hon. Gentleman against the local authority.

What will he then do? Will he permit the extension of the industry in an area that is planned for open space or residence? If he does, to that extent the right hon. Gentleman simply makes nonsense of the development plan. Or, if he refuses to agree to the extension, the owner will have a claim for compensation for planning restrictions.

I think the right hon. Gentleman will find that in most of the great towns and cities of our country where there is over-industrialisation and there are development plans which provide for drastic reduction of industrial concentration, if the development plans are to be carried through in our lifetime, or even in the lifetime of our children, he will be faced with heavy compensation for the loss of development as a result of planning restrictions.

Another point I want to make is to some extent referred to in the White Paper of November, 1952, paragraph 30. It says there that the development plans have changed values, in some cases considerably. In some places areas previously used as open spaces with small use value, and also in many cases low development value, might under the development plans be town-planned as industrial or for business purposes. That mere act of re-designation has automatically increased the market value of the land towards which the owners have done nothing at all. That act of planning has put a substantial sum, by way of betterment, into the pockets of the owners of such land.

The proposals of the right hon. Gentleman permit the private owner to receive that betterment value. Is it right and proper that that should be so? I do not think it is. I do not think that a private individual should be entitled to receive the considerably enhanced value resulting from a deliberate act of planning by the local authority.

Would the hon. Member also agree that in certain cases planning would detract from the value of land? Would he then propose compensation?

I am just coming to that point, if the hon. Gentleman will listen.

There would also be areas previously planned as industrial or business areas which, under the new plan, would revert to open spaces, or would fall to be used for residential purposes. The value of that land would have been reduced, but the owner would have the right to claim compensation for loss of value through planning restrictions. Therefore he will be recouped. But the individual who owns land which has appreciated considerably in value as a result of the development plan will also receive that advantage without having done anything to deserve it.

The position is not clear, and I hope that on Committee stage many of these anomalies and injustices will be dealt with. The right hon. Gentleman may not now be prepared to admit the necessity that, in the interests of the community, the betterment value of land should go to the community, but I hope that during the Committee stage he will change his mind.

8.22 p.m.

The hon. Member for Acton (Mr. Sparks) is one of the few hon. Members opposite who has made no contribution in this debate to the discussion inside the Labour Party on the question of what to do about town and country planning.

There is quite an interesting story to be read in the reasoned Amendments which at one time or another have appeared on the Order Paper. When my right hon. Friend produced his first Bill in November, 1952, hon. Members opposite rushed to place on the Order Paper an assertion of "the principle of the public acquisition of development values." But it was immediately pointed out by some of their hon. Friends that this very public acquisition of development values was very unpopular in the country and that it had acted harshly on many of their own supporters. So, over the weekend, the phrase was turned to become a reference to "the recovery by the community of socially created land values."

Even that is too strong now, after the lapse of another 15 months, and all they have ventured to put on the Order Paper today—whatever they have said in their speeches—are the words

In this debate we have had all sorts of policies propounded. The hon. and learned Member for Leicester, North-East (Sir L. Ungoed-Thomas) offered hon. Members of the House three alternatives between which they could choose. They could have the Uthwatt solution, the Silkin solution or the taxation of land values. More boldly and logically, the Bevanite speakers plumped for the nationalisation of the land.

The Town and Country Planning Act, 1947, was, in my opinion, the most important of the nationalisation Measures placed on the Statute Book by the late Administration. It was the most important because what it nationalised, namely, the right to change the use of land, is the most general, indeed, the universal raw material of economic development. A monopoly in the right to change the use of land is the most embracing, the most comprehensive in its effect, of all monopolies. So, also, the denationalisation of land values put into effect by the previous Act of my right hon. Friend and by the present Bill, is, in my view, the most important Measure of denationalisation carried out by the Government in this Parliament.

In the cases of transport and of iron and steel we have been told by hon. Members opposite, and we can read in "Challenge to Britain," editions I and II, what they intend to do about it. We have been told that they intend more or less to renationalise those industries. Do they intend to renationalise development values if and when they get the opportunity? They have not told us in their Amendment. Perhaps the hon. Member for Wellingborough (Mr. Lindgren) will tell us in clear and definite terms tonight.

The remainder of the Amendment says that the Bill

It is true that in one sense these measures restore a free market in land. Once more land will be offered for sale without the prospect of a development charge interfering with the price which is offered and received. To that extent, but only to that extent, a free market in land values is re-established. That is a very important change and a very valuable one, because the market price placed on land for development is a useful indication of the direction in which development is likely to proceed, and, in the economic interests of the country, probably in most cases should proceed.

But this free market in land is subject to some important limitations under the present Bill. The first limitation is that where land is acquired compulsorily by a public authority it will not pay more for it than its existing use value plus the amount of the 1947 claim, if any. Where no claim was assessed under the 1947 Act, it will pay no more than existing use value. There is, it is true, a limiting Clause in the Bill—Clause 37—to the effect that if a purchaser of land was assured at the time he purchased it that there was then no intention of compulsory acquisition, he will have three years, should the planning authority change its mind, to be able to get full market value.

Subject to that qualification, there is this first limitation upon the free market in land, that if compulsory acquisition takes place the price obtainable will not exceed the current existing use value plus the 1947 claim. Of course, with the passage of time, as development shifts and goes on, the 1947 claims will become more and more irrelevant to development prospects. We shall move away from the pattern of development values as it existed in 1947.

Yes. The prospects of development year by year will gradually differ from the prospects of development as they were in 1947. In consequence, the price obtainable on compulsory acquisition will more and more approximate in an increasing number of cases to existing use value. The other limitation upon the free market in land is that where development permission is refused, or is qualified by conditions, then the compensation payable will not exceed the amount of the 1947 claim.

Therefore, in future, when land changes hands, the buyer and the seller will have to have regard to these important qualifications: the possibility of compulsory acquisition and the possibility of refusal, or conditional grant, of planning permission. Whatever may be the apparent development prospects, the price which a purchaser is prepared to pay will always be governed by his apprehension that one or other of these events may follow.

That fact will have this effect, that land values in future will more and more take on the pattern of the confirmed development plans. The potential purchaser of land, in considering, if he buys, what risk he is running of planning permission being withheld and, in consequence, of his receiving only the 1947 claim, if any, will look at the current development plan of the local planning authority, and he will not pay more for land than its value for the type of development shown on that development plan. If he does otherwise he exposes himself to losing anything extra that he pays if he does not obtain planning permission.

It is true that there is the still more severe sanction that in the event of compulsory acquisition he may not even himself be able to carry out the type of development envisaged in the plan. But, of course, development plans do not only show the kinds of development anticipated in different areas; they also indicate the areas which it is expected will come, at one time or another, under compulsory acquisition.

Thus, the result of the Bill is that the development plans of local authorities will in effect determine the pattern of land values. They will come to determine them the more effectively the further away we get in time from the 1947 pattern and, therefore, from the prospects of recoupment out of the 1947 claims. That, I should have thought, was a most powerful economic reinforcement—reinforcement through the agency of the market—of the intentions of the planning authorities.

By means of the Bill, instead of the interests of the buyer and seller of land working against the intentions of the planning authority, as they have done under the 1947 Act, the intentions of the planning authority will be, as it were, photographed into the pattern of land values. I ventured to say a little earlier that I thought that that would give to the development plans an almost too mandatory effect. I see four dangers which could follow from this photography, this reproduction, in terms of land values, of the outlines of the current development plans.

The first danger is that of uncertainty. A development plan under Section 5 of the 1947 Act, which is unaffected by the Bill or by the Act of last year, must be reviewed every five years; but it can also be altered in any respect, subject to the confirmation of the Minister, at any time during the quinquennium. Thus, the pattern upon which anticipated values; will be based may be altered at any time by a decision of the local planning authority.

I am not saying that that decision may be a wrong one—indeed, it will probably be the pressure of events and the emergence of new demands and new economic trends which will force changes in their development plans upon local authorities—but the effect of those changes will be a sudden interference with the prospective values of land and the introduction of uncertainty into the market in land.

With that uncertainty there is connected a danger which one ought not to refrain from mentioning. We shall place in the hands of local planning authorities, subject to Ministerial confirmation and the procedures under the 1947 Act, the power of altering land values by planning decisions. It will happen, for example, through alteration in a development plan that land which at one time was zoned as residential comes to be zoned for industrial use. Such changes must inevitably come about. By means of the way in which the boundaries of such zones are drawn, it will be possible to include or exclude certain plots of land.

In those circumstances, it seems to me that the House ought to take seriously the possibility that corrupt considerations may be involved or attempted.

The hon. Member will realise that where the decision of a local authority can influence the value of property, perhaps enormously, there may well be temptations on both sides to exercise such decisions not entirely with a view to the public interest. It would be a mistake for the House to shut its eyes to a danger which may arise out of the system which is being created under the Bill as it now stands. The Ministerial sanction which exists in Clause 29 will not lessen the danger because, upon the whole, it operates to permit and not to prevent development.

The third danger is that to escape the effects of Clause 37—whereby if a local authority changes its mind and goes forward to acquire land which the purchaser had been assured would not be required for compulsory purchase, it has to pay the full current value, including development value—local authorities may be tempted to zone too much land for compulsory acquisition so that they will at any rate be on the safe side and can always say that the area was shown in the development plan as intended for eventual acquisition by a public authority.

That is a danger; but it is probably not so serious because there is a provision in Section 9 of the principal Act—a provision which, I am glad to say, owes its origin to an Amendment moved by my hon. Friends when they were in Opposition—whereby after 12 years' designation for compulsory acquisition, or eight years in the case of agricultural land, the owner of the designated land can compel the local authority to acquire it. It may, therefore, be that in the matter of designation a balance of interests will be set up and the danger avoided.

The fourth, and most important, danger which I see is that the development plans of local authorities may become too exclusively a guide to the economic use of the land of the country. These development plans show what development is expected in the various planning areas over a space of five, 10, 15 or 20 years ahead. Whatever merits local planning authorities may possess, the capacity to foresee the economic development of this country over 10, 15 or even 20 years is not likely to be conspicuous among them.

Although, therefore, development plans will be progressively modified as time goes on, and although, at the quinquennium, alterations dictated by experience will be introduced, we must face the fact that these development plans and their reflection in land values will impose a time lag upon economic change. They will impose delay upon the implementation of economic decisions on what to develop and where to develop.

The wealth and the prosperity of our country depend upon the future pattern of the use of our land being the best in the economic sense—using that term in its widest sense—that is possible. The danger with which we are here confronted is that the effect of development plans will be to attach a ball and chain to the feet of economic progress, and that we shall constantly lag behind while development has to wait until such time as the local planning authority can get around to alter its plan.

These dangers are, indeed, the opposite of those which the Opposition seem to anticipate in their Amendment. They are the dangers of an excessive strait—jacket being imposed by development plans. I believe that in the long run we shall see the wisdom of loosening that straitjacket.

The time will come when it will be possible to treat the development plans of local authorities, not as absolute and mandatory, but as important guides as to what development should be permitted and what should be prevented, but that the ultimate decision will come to be taken by some kind of authority standing outside the planning chain of command.

That consummation will itself have been made possible by this Bill and by the Act of last year, just as—and let us on this side of the House be frank and recognise it—this solution has been made possible, in its turn, by the Act of 1947; for I do not think my right hon. Friend will deny that he has himself been able to take advantage of what survives of the 1947 Act. So I believe that we can look forward to a future development of planning law in this country whereby these doubtful effects of mandatory development plans can be avoided. In time to come, too, I believe that the use of the 1947 claims as an absolute and final valuation will be able to be given up without damage to the then structure of town and country planning law.

In the meantime, I consider that the solution which my right hon. Friend has adopted, whatever the complications of the Bill, has the simplicity of genius. He found compensation and betterment tied together and development values nationalised. He solved the problem, probably for our generation, by what is virtually the abolition of both compensation and betterment. I think that the restoration of a free market in land values, in the qualified sense which I have described, and the reflection of development plans in the market values of land, are great achievements of this Bill. When the next stage in town and country planning law comes along, it will be possible to look back to the Acts of 1953 and 1954 with admiration and gratitude.

8.45 p.m.

The longer I listen to this debate the more amazed I become at the way in which hon. Members on the Government Benches seek to justify giving back to the landowners what the 1947 Act tried to give back to the community. That Act did not give it back, and some of us said that it would not.

The hon. Member for Wolverhampton, South-West (Mr. Powell) has gone so far as to suggest that the present town planning law might lead to corruption in local government. That was an amazing statement to come even from those benches. The hon. Member was a member of the London County Council at one time, and he ought to know from his experience that the officers of the local authorities in this country have as high a reputation for incorruptibility, honesty and straightforwardness as have civil servants. It is a very great pity that an hon. Member on the Government Benches should have suggested that one of the dangers of the present position is not merely a strait jacket but some corruption. That is nonsense. Nobody with experience of the town planning laws has ever discovered such a danger to my knowledge, and I have had nearly 30 years' experience in the matter.

The same hon. Member talked about the dangers of a strait jacket. I do not know what his argument had to do with the Bill, which proposes that we should go back to the old anarchy instead of having some plan and some rules about things. We on this side of the House are in favour of planning and laying down rules governing the use of land. If hon. Gentlemen opposite think that is wrong, and if they want to go back to the old method of catch-as-catch-can—which is what they are doing by the Bill—they must let us know where they stand. We are against it.

The landowners are doing much too well out of the Bill. It is true that I was never enthusiastic about the £300 million give-away to which the Minister referred earlier, or about the development Sections in the 1947 Act, but at any rate we tried to tackle the question of bringing back to the community the values that only the community creates. Without the gathering of men on a site that site has no value at all. It does not matter very much whether the men are highly organised into a town or a community. The fact that men gather together to live and work adds to, and goes on adding to, the value of the land, the owner of which can exploit their need right to the very limit. In fact, the landowner has done that and is doing so now in the city in which we are meeting at this very moment.

We say that those values ought to come back to the people who created them, that is, the community in general. The 1947 Act went the wrong way about it. We should put a very stiff tax on all land values and make the landowners compensate themselves for being nationalised later. There is no time now to develop this point, as my hon. Friend the Member for Wellingborough (Mr. Lindgren) is to wind up the debate for this side of the House in a few minutes; but there is evidence all over the country and all over the world of the successful application of the principle of taxing land values as a means of getting back to the community the values which the community has created and which, incidentally, landowners cannot create. That is helping very considerably to ease the financial troubles of towns and cities all over the world including, as my hon. Friend the Member for Hayes and Harlington (Mr. Skeffington) said, even New York.

Therefore, it seems to me that, having got rid of the development Clauses of the old Bill, and having got rid of the £300 million present to the landowners, the Minister might have been very well engaged in trying to get back all these values for the community by putting a stiff tax on land values and on all landowners. Of course, he could not have done that by this Bill. As the right hon. Gentleman said, this Bill merely changes the machinery in regard to development use. But, even there, the Bill is not fair, and the point made by my hon. Friend the Member for Hayes and Harlington should be emphasised.

The advice which I have received from the experts of the authority of which I am a member is that the Bill will add very considerably to its costs; and that is the burden of a report which I have recently received. It says:

For instance, I found that, in Bethnal Green of all places, there was an estimate of £36,000 per acre for a housing site. In Southwark the price asked was £21,000 an acre, in Bermondsey £16,000 an acre, in Poplar £18,000 an acre, and the average cost to which the London County Council has been put during the past 12 months for housing sites alone has been £12,000 an acre, an increase of £2,000 compared with the figure of three years ago. In other words, land values are continuing to go up, and the only person who benefits is the landowner.

I wish that this Bill had done something to tackle that situation. I am quite sure that one day some Government will have to tackle it. I hope it will be a Labour Government, and that they will go all out to put a heavy tax on landowners. Somebody has got to do that eventually because, until it is done, we shall never clear away many of the financial problems which afflict local authorities or do justice to the ordinary people.

Therefore, I hope that the House will seriously take into account the words of the Amendment which says not merely that the Bill

It will add to the financial troubles of local authorities all over the country, even though the Minister has provided a 50 per cent, grant for town planning purposes, which is much better and simpler to operate than were the grants in the 1947 Act. But this payment by local authorities of back-dated interest charges—the one-seventh supplement—seems quite unfair. Surely there is a good principle to be invoked here. If a change of values or circumstances is created by Government policy the cost should be borne by Government funds and not by local government funds, which in effect means by all the ratepayers in the district.

I hope that the Minister will take note of that matter in Committee. Nevertheless I am sure that until the House seriously tackles the land problem, and does so without becoming afraid of it, as has so often happened in the past, we shall never solve a great many of the economic and social problems which afflict this country.

8.56 p.m.

During this debate, on a subject which is of vital interest to the nation, we have had, on both sides, a very thin House. That has, perhaps, offered the advantage that those who have taken part in it have known something about the subject, which has added to the value of the debate. Although on this side of the House we violently disagree with hon. and right hon. Gentlemen opposite about the intentions expressed in the Bill, it is at least pleasant to be associated in debate with those who are turning their knowledge and experience to the problems which we are discussing.

That things are not easy on either side of the House is shown by the speech of my hon. Friend the Member for Clapham (Mr. Gibson). I thought that whilst the hon. Member was on the subject he might have gone on to Henry George and referred to "Progress and Poverty," but the problems with which we are faced are, I think, a little different from those with which Henry George tried to deal.

Whilst every one has said that the Bill is complicated—and no doubt from the lawyers' point of view it is—I accept the legal jargon in it as necessary to meet the points which Parliamentary draftsmen have to meet. I therefore propose to deal in the main with general principles. I agree with my hon. Friend the Member for Pembroke (Mr. Donnelly) that there is a lot of mystery and jargon surrounding planning, but that it is not quite as difficult a subject as some try to make out. All that one has to get down to, really, is, what are the fundamental principles? It is then the job of the Parliamentary draftsmen to translate those fundamental principles into an Act of Parliament. The Amendment which was moved by my hon. and learned Friend the Member for Leicester, North-East (Sir L. Ungoed-Thomas) amounts to the rejection of the Bill. It has been put down because we feel that, fundamentally, the Bill undermines the whole basis of planning.

The Minister, in his opening speech—and I join with the others who have complimented him on his exposition of the subject—said that the Government are here dealing only with the financial provisions of the 1947 Act and that the other provisions of that Act are left intact. The Minister has said that he is an innocent Minister; he must be very innocent if he really thinks that.

Finance is the whole basis of planning. Divorce finance from planning, and planning has gone. The hon. Member for Wolverhampton, South-West (Mr. Powell) said that we should look back upon this Bill as a fundamental one. But it is only an interim Measure. Before five years have elapsed we shall have to have fresh planning Measures, because the Bill has avoided the financial problems which arise from it. Let us look at the various Measures which have been passed. There was the 1909 Act, brought in by that great Londoner, John Burns; the 1919 Act; the 1925 Act, and the 1932 Act. Everybody agrees that those Acts failed miserably. Even the Tory Government in pre-war years agreed, because they set up the Barlow Commission to deal with the distribution of industrial population.

That Commission reported at the beginning of the Coalition Government. The report was a very valuable one, but the members of the Commission said, in effect, "We have dealt with the task you have set us, of getting a correct land use and making possible a redevelopment of industrial location, but one cannot deal with industrial location until one deals with finance. One has to deal with the problem of compensating a person who loses a development right and of getting back some betterment from the person who obtains a development right."

Every previous planning Act has failed, because the financial provisions were such that no local authority—not even the great London County Council, to which my hon. Friend the Member for Clapham (Mr. Gibson) and my hon. Friend the Member for Hayes and Harlington (Mr. Skeffington) belong—could afford them. The Barlow Commission said that unless compensation and betterment were dealt with the recommendations which it made would not avail.

The Coalition Government accepted the report and set up the Uthwatt Committee, whose terms of reference were to report to the Government on the problem of compensation and betterment. The Minister is running away from the promise which the Coalition Government made in Cmd. 6537—"The Control of Land Use"—which accepted the recommendations of the Uthwatt Report and said that when the war was over they would be implemented. The Tories make a lot of promises when a war is on, because they are frightened, but they forget those promises when the war is over.

I agree with the hon. Member for Wolverhampton, South-West and the hon. Member for Henley (Mr. Hay), who both said that this Bill was part of a Tory plan. Of course it is; it is part of the Tory plan to destroy the social development which has been created between 1945 and 1951. We had the Beveridge Report during the war, because the Tories were worried about social services, and they made all kinds of promises. They would never have implemented the Beveridge Report, and ever since they came into power in 1951 they have been undermining it, sneering at the Welfare State and trying to destroy it.

Under Tory Governments in pre-war years not only planning but housing was bad, and the general housing standards required by the Ministry of Health were not good. The Tory Government admitted that when the war was on. They said, "After the war we shall have better houses." They set up the Dudley Committee, and we had the Dudley Report and the Dudley Standards. Of course, the Tory Government accepted the Dudley standards and issued a White Paper and instructions to local authorities to conform to those standards when the war was over.

What is the Minister of Housing doing now? He is destroying the Dudley standards. We are now building council houses to standards below those of 1938. The Labour Government accepted the Dudley standards and implemented them, and the houses which were built in that period were up to those standards. This week-end, if we may believe the B.B.C. reports this morning, the Minister made a speech in which he said he intends to facilitate the purchase of houses through the granting of loans.

This appears to me to be rather remote from the Bill.

I submit to you, Mr. Deputy-Speaker, that it is not remote from the Bill. This is part of the plan of the Government to undermine the general standards which were created between 1945 and 1951. The Minister's announcement today is that there is to be extra financial provision for those who purchase houses, and the guarantee for that extra finance is to come from the community. The local authority is to take the risk in connection with the extra finance and the financier is to get extra return on his money.

When in Opposition, the Tories did not hide their objection to the 1947 Act as it was passing through the House. I ask right hon. and hon. Gentlemen opposite to remember that the 1947 Act was only the implementation of the Barlow and Uthwatt Reports. They themselves set up those committees before the war and during the war to deal with the problem of planning, which they agreed existed. The Labour Government gave effect to the recommendations of those expert committees. What is the objection of right hon. and hon. Gentlemen opposite to the 1947 Act?

That is not the objection. It was the first planning Act of this country which touched the pockets of the landlords, and it is because it touched the landlords' pockets that right hon. and hon. Gentlemen opposite are so anxious about it. As the hon. Member for Wolverhampton, South-West rightly said, it nationalised the future development of land values in this country.

When we take away from the landlord the right to obtain the values which the community has created, the landlord is very much disturbed. We nationalised the future development of land values and in doing so we provided that where development took place there should be a development charge, and where development was denied there should be compensation. That is the basis of all planning. Why previous Acts of Parliament have failed has been because when we have attempted to deprive people of development rights in the past the compensation has been excessive. Local authorities could not afford to pay the compensation under previous Acts of Parliament.

There have been assertions from hon. Members opposite, and the hon. Member for Wolverhampton, South-West joined in them, asserting that the community does not create land values. Of course the community creates land values. I have been associated for a number of years with the development of a new town. The land on which that town was built was bought for £40 an acre. In 1939, only 20 years afterwards, land in that town was being sold at £6,000 an acre. The reason for that was that 15,000 people had come to live in that town.

It is, in fact, the coming together of communities and community activity which gives value to the land. In that instance, the organisation was such that some of the value came back to the community, but under this Bill all future land development values go back to the landowner. If there is to be compensation because of deprivation of development rights, then the community has to pay them.

I ask the Attorney-General, who is to reply, to attempt to justify that. How can Her Majesty's Government justify the fact that in future under this Bill any landlord owning land will be able to exploit to the full his ownership and get as high a price for that land as is possible for him to get, and when for planning purposes there he is deprived of the right to develop, the community should pay the compensation? That is real Tory philosophy. The landowner takes the benefit and the community pays.

I agree that in theory this Bill is better than the 1932 Act. Then compensation was payable by the local authorities, and the local authorities were not the planning authorities that they are today—the county boroughs and the county councils. The planning authorities in those days were every type of local authority, and the only co-ordinating factor was certain joint committees used by certain county councils under the 1929 local government Act. Under that Act of Parliament, the local authority bore the cost of compensation and, therefore, we proceeded on interim development orders, and no local authority really interfered with development because it could not afford the compensation payable.

Under the Bill, it is true, Her Majesty's Government, through the Minister's Department, accept the responsibility for compensation. But let us look at the provision in practice. The right hon. Gentleman has asserted, not only in his own speech but in a number of interjections which he has made when hon. Members have been speaking, that the Government are not going to turn down an application from a local authority when they refuse it planning permission. I just do not believe that.

I have had far too long an experience of local government and of the association between Government Departments and local authorities, as well as a slight acquaintance with the Treasury from 1945 to 1951, to believe that in fact where a Government Department is responsible for paying out compensation that what the right hon. Gentleman has asserted will take place. The refusal will be rescinded or modified. If that is not so, why does the Minister take power under this Bill to revise and review refusals which have taken place between 1948 and today?

The right hon. Gentleman suggested that this Bill will not alter planning provisions at all. Hon. and right hon. Members opposite make a lot of noise about the use of agricultural land, but since the Act of 1953, agricultural land has been sold for housing. I can give a couple of instances from my own knowledge. There is the new town of Bracknell. The Minister of Town and Country Planning at that time designated the area for the new town of Bracknell, and the agricultural interests immediately appealed. At the local inquiry the N.F.U. and everyone said that it was the most valuable agricultural land it was possible to have. Such an impression did they make on the Minister that he changed the area of designation and excluded that valuable agricultural land.

What has happened since that Measure was passed? The very land which was so valuable for agriculture when Bracknell new town was started and which was to be excluded from the designation—frontage land—has been sold. What does "so valuable" mean? It means that under the new planning provisions arranged by the 1953 Act and confirmed by this Bill, agricultural land is to be sold for housing development if the farmer can get a high price for it.

I am not sure what has happened there, but I know what is happening in Hertfordshire where, in the case of Welwyn Garden City, agricultural land has been developed. Landowners of frontage land are applying for permission for the re-creation of ribbon development on the outskirts of the town and outside the designated area.

The hon. Member for Hertford (Mr. Walker-Smith) is not going to draw me into saying unkind things about his Tory friends who are colleagues of mine on Hertfordshire County Council.

There is the trend all the way through; we are going back to pre-1947 planning days and the Act of 1932, and we shall not have effective planning in this country because we are not dealing with the financial provisions as they ought to be dealt with. Under the Bill the local authority acquiring land of a low use value, such as for playing fields or open spaces, is going to be very seriously hampered. As I understand the Bill, they have to pay the existing use value, plus the admitted claim plus interest or the supplement.

Under the 1947 Act, Where a local authority acquired land of a low-use value, such as for playing fields or open spaces, the development charge was negligible. The provisions are going to be made so onerous for local authorities that unless the matter is very urgent they will not be able to afford to carry out any works, and they are going to think very hard before undertaking essential purchases because of these excessive charges.

In Clauses 53 and 54, which are the redevelopment Clauses, grant revision is dealt with. The present grants are 90 per cent, to 20 per cent., and they vary according to the type of redevelopment and the resources of the local authority. On the year of simplification it is proposed to make the grants 50 per cent, under the Bill. My hon. Friend the Member for Clapham thought that 50 per cent, might be an improvement. That may well be so for a large local authority like the London County Council, which has large resources, and which can get redevelopment grants under the Housing and Education Acts.

But it will be much more difficult for the poorer authority, and my objection to the proposals in these Clauses as I understand them at the moment—and I shall be delighted if I can be corrected by the Attorney-General—is that the local authority that has the most to do and the least resources with which to do it will be the one which will suffer most. We ought to be assisting that type of local authority rather than making it more difficult for it.

It may well be true that in the case of the acquisition of land for open spaces an authority like the London County Council will benefit, but it is also clear that the acquisition of land for housing and education purposes is going to be very much more expensive than under the 1947 Act.

Yes, the acquisition of land is going to be more expensive for the council, but speaking subject to correction, the London County Council or any other large local authority will get appropriate housing grants for redevelopment work, and if it undertakes as redevelopment the building of schools, it will get grants from the Ministry of Education under the Education Act. But my fear is that it is going to be more difficult for local authorities to deal with these matters in the future.

I hope that the House will accept the Amendment which has been moved by my hon. and learned Friend the Member for Leicester, North-East, because once again the Government are engaged in a pay-off to their friends. Under the provisions of the Housing Repairs and Rents Bill the landlords benefit, and under this Bill the only persons who will gain any benefit are the landlords. Hon. and right hon. Gentlemen opposite may groan, but that is a fact which has to be faced.

If there is compensation to be paid then it is the community that will have to pay it out of community resources. It means that the planning future of the land of this country is being sacrificed and that the work of the local authorities in planning will be hampered also. I hope, therefore, that the House will accept the Amendment because this Bill instead of dealing with planning as it ought to be dealt with, takes away from the existing planning law of this country the only possibility there is of planning being effective.

9.25 p.m.

I feel more than usual diffidence in replying to this debate in view of the highly technical character of the Bill and the fact that on both sides of the House there are hon. Members, among whom I cannot claim to be, who have special knowledge and experience of this subject. If I may be allowed to say so, several of them have made valuable contributions to this debate, particularly by raising questions of substance with which we want to deal.

This debate has been divided into two parts. There has been the "heavy stuff," with which I shall deal now, containing serious questions which it was perfectly proper to raise and which need to be answered. Then there has been the light relief characterised by the Amendment and the speech, to which we have just listened, from the hon. Member for Wellingborough (Mr. Lindgren), consisting of tub-thumping politics, to liven up things. Those hon. Members who have been here all day, as I have, will be grateful for that.

If I cannot deal completely with the important questions that have been raised I am sure that hon. Members will realise that it is because it would not be appropriate to go into details here tonight. I only want to make it clear that they are appreciated and to try to answer them as far as I can. The hon. and learned Gentleman the Member for Leicester, North-East (Sir L. Ungoed-Thomas) referred to some remarks in "The Times" today about the cloud of spurious claims that might rain down upon us—or they might be called bogus claims—and asked what was to be done about them.

Clearly, that is one of the justifications for the provision in Clause 29. But there is no reason why the bluff should not be called in a number of those cases. There can be, and perhaps will be to begin with, a number of cases where people will try it on. All they will find will be that their application is granted, and that will be the end of that. So we think that the apprehensions expressed in that direction are rather exaggerated.

The hon. Member for Widnes (Mr. MacColl) after what I would call a rather shaky start, when he was explaining to us his mental processes in connection with the Bill, raised three matters. First, he raised the question of the local authority which buys ahead and asked what would be the attitude of the Minister to the local authority in case it decided to adopt a policy of buying at an early stage. The answer I am authorised to give is that the Minister will be thoroughly sympathetic to proposals by local authorities to buy land well ahead of their needs if there is a case for doing so.

The hon. Gentleman went on to make a point, which was also made by the hon. and learned Gentleman before him, about what would happen if the local authority bought developed land. I am told that such a thing has practically never been heard of, and it seems extraordinarily unlikely that any local authority would do it.

The hon. Member for Widnes raised another point on Clause 37, on the question of the acquisition of compensation if a local authority was asked if it proposed to acquire. If it said "No," in that case, all very well. But what happens if it said, "Yes" and it did not mean to acquire? We have already heard strong protests at the suggestion that local authorities may do anything which is an absolute restriction, and I should have thought that was a good example. We are surely entitled to ask local authorities not to behave in that way.

We are also entitled to ask local authorities to protect the public money of which they are the trustees. If they are in doubt whether or not they are likely to use the land, they will have to say they intend to develop in order to comply with the Clause.

Certainly, but I think that the suggestion that was made went a little further.

The third important point made by the hon. Gentleman was why the name of the Minister was changed from the Minister of Planning. I will tell him the answer to that. In this Government all Ministers in all Departments are good planners, so we thought it would be better to change the name.

There were three hon. Members on this side of the House who, if they will allow me to do so, I will group together, the hon. Member for Henley (Mr. Hay) the hon. Member for Hertford (Mr. Walker-Smith) and the hon. Member for Angus, North and Mearns (Mr. Thornton-Kemsley). They raised a question with regard to the cost where no claims have been made. They said they thought that was too hard on those concerned. As the Minister has said, that has been considered carefully and so far we have found it impossible to undertake any kind of revision, because it is impossible to draw the line. But obviously, if those hon. Members bring up the matter again it will be considered, though I cannot give an undertaking about the matter. The hon. Member for Hertford also was concerned with Clause 23, and if there are any detailed matters on that which can be considered for adjustment no doubt he will raise them later.

Then we had the hon. Member for Pembroke (Mr. Donnelly), who made a most interesting speech. Of course he was not asking for any information. He did not need any information from me or from anyone else. He was imparting information to us—in a very courteous way—although I am afraid that on this occasion he will not get the mention in our national humorous weekly that he had recently. There was one rather interesting point in his speech. He cited the Uthwatt Report and immediately proceeded to use it as a justification for the thesis of nationalisation. I was rather interested, being so thoroughly ignorant of these things. But I was able to read the Report and to find that the very point where he stopped reading was the point at which the Uthwatt Committee went on to say:

If the right hon. and learned Gentleman will read back through the earlier part of that paragraph he will see the reason why they considered that it was not practicable. They said it was outside the terms of the political climate which existed at that time, when his hon. Friends were in power.

I see the reason why the hon. Member stopped reading. One thing he did do, for which I would express my thanks to him. He did—I almost used a rude word; perhaps "denigrate" is the parallel word—the hon. Member for Widnes about the Bill of its wording. I am quite sure that if the hon. Member could have found anything critical to say about it he would have said it. He recognised, as did the hon. Member for Widnes, that it is a highly technical matter and technical language is necessary. But it is not really so difficult to understand it if one is prepared to sit up all night to do so, rather than waste one's time doing other more useless things.

The next hon. Member whom I would like to try to answer is the hon. Member for Hayes and Harlington (Mr. Skeffington) who raised several matters affecting local authorities. They are important and very technical points. I should like the hon. Gentleman to know that we are considering them. First, with regard to Section 19 of the 1947 Act, there was serious consideration given to whether the word "beneficial" in that context could be improved. So far we have had no luck, but we are prepared to consider the matter further if anyone can help us.

On the question of retrospective payment under Part VI, I ought to say that it is undoubtedly the fact that some pre-White Paper cases will be worse for the local authorities. That is recognised, but I understand that my right hon. Friend has been in consultation with the local authorities. He proposes to continue to consult them. He certainly wants to help them in any way he can. It has already been admitted that the 50 per cent, grant helps in a number of cases. There has also been an easement of the position with regard to open spaces.

The other point the hon. Gentleman raised was about what he said should be uniform consideration as between local authorities and the Minister. I would remind him that we have very different conditions. When the Ministry is dealing with a number of cases the Minister might qualify the permission or refuse it; a case may be dealt with in such a way that there is no question of compensation or there may be a gradation of it. But local authorities deal with straightforward purchase. It is difficult to see how one can put this on a uniform basis.

Several hon. Members opposite referred to payment. I can only say that my right hon. Friend hopes that he will be able to convince local authorities, in the end, that there is more in his view than some of them appear to think now. All that is involved is that they are being asked to pay interest in respect of what might be called the great Silkin-Dalton era.

Local authorities were not responsible for the Silkin-Dalton era. If they were not responsible for it. they ought not to pay for it.

I am not suggesting that those two gentlemen should pay personally. This is a matter of a difference of opinion, and I do not think that I shall add to it by reinforcing the arguments.

There were one or two minor matters in connection with Clauses 53 and 54. The hon. Member for Wellingborough asked about them. My right hon. Friend says that he thinks that it would be much better if we left them to be thrashed out with all the local authority questions which undoubtedly have to be discussed.

Then there was the hon. Member for Acton (Mr. Sparks). If he does not mind, I do not think that I need make any separate reference to him beyond saying that he dealt with the question of the no claim cases. He seems to think that there was some special grievance in the case of this Bill. In fact, those people will be no worse off under the Bill. Indeed, they should be better off. Under the old scheme there was no real room for consideration of them, and there may be some under this. Certainly, I do not think that they can say that the Bill as a Bill will do them any special harm, certainly no harm which was not done to them by the other Measure.

Those are the specific points that were raised. I should like to say at once that, although, obviously, I cannot commit my right hon. Friend to accept any suggestion in advance, both he and I will very genuinely welcome any constructive criticisms and any assistance which hon. Members on either side of the House can give us when we come to the Committee stage.

After all, what we are seeking to do in the Bill is to carry into effect a decision already made by Parliament when it was decided to abolish the development charge with the necessary consequences which were foreseen in the White Paper and fully discussed when the debate on that took place. When the 1953 Measure became law, it inevitably followed that we had as soon as possible to set up machinery and lay down the necessary conditions for what has been described as the "unscrambling" process. It is also described as a "salvage" process. I do not think it matters which term one adopts. Some modifications were necessary to the 1947 Act. The Bill makes those modifications, and that is all that is required to be done for the time being.

Hon. Members opposite complain that the Bill does not also do certain other things, such as introduce a new and effective means of collecting betterment. The hon. Member for Clapham (Mr. Gibson) was very helpful in saying that that is not really what is being done in the Bill. He was the only hon. Member opposite who really appreciated that point. What we are concerned with here is to get a very difficult and complicated job done quickly, for reasons which have been explained very clearly. If that is what we are to do, we must carry out what is immediately necessary and avoid anything which would be bound to create unnecessary argument and controversy and delay the coming into operation of the Bill.

I want briefly to remind hon. Members of what was pointed out by my right hon. Friend. As a result of the 1947 Act. the House is under an honourable obligation to a large number of people, many of whom are small people, and they are entitled to be paid substantial sums of money. They are already in difficulty. They were led to suppose that they would be paid by 1st July, 1953, at the latest. As far as I know, no hon. Member suggests that they should not be paid, and I feel that the House as a whole will agree that we must ensure that there is no further delay than we can possibly avoid in paying them.

Obviously, what has happened—everyone must share the blame—was bound to introduce some delay, but I feel that the country would not take it well from either the Government or the Opposition if we did not arrange matters so as to permit the payment of established claims at the earliest practicable moment. Surely it follows that we ought to avoid complicating the present Bill and should avoid provisions which are not necessary and, above all, provisions which are likely to prove controversial and to delay the passage of the Bill into law. As has been pointed out, we shall have our work cut out to get the payments started this year, and we shall certainly not be able to do that if we have to enter into some of the lengthy considerations which would be required if we are to judge by some arguments that we have heard today.

Some hon. Members have suggested that the Bill is sabotaging or scrapping the 1947 Act. That is a very extra- ordinary exaggeration. As has been pointed out, the general system and machinery of planning is entirely untouched. There is no doubt that it is working satisfactorily. Although it can be amended, and, no doubt, will be, there is not the slightest reason for supposing that the Bill will do it any harm. In fact, I suggest that the reverse is the case. Once the development charge confusion is cleared up, the field will be open for all those concerned to devote their attention to the improvement of the general planning machinery.

I think that the background and purpose of the Bill has been somewhat distorted and obscured by some of the speeches made in the debate, but one thing I can say, which probably does command almost universal approval in the House is that, speaking as one who can take no credit whatever for the preparation or drafting of any part of this Bill, I would assert that, notwithstanding the criticism that may be applied to any document humanly drafted, a good job has been done by the Parliamentary draftsmen and by those Departmental officials who work with them. They get very little praise for their work, they are often blamed for other people's errors and the orders which they get from other people, and this is an occasion on which they deserve a meed of praise.

I hope that the hon. Member for Widnes did not think I was being rude because I interrupted him, but I felt that, coming from one so authoritative as himself, any unguarded statement suggesting that the Bill was a lot of nonsense which nobody could understand would be most unfortunate to go out to the general public. As we heard from the very clear exposition of the Bill given by my hon. Friend the Member for Hertford, this is, in fact, a clear and intelligible statement of a very difficult subject.

These draftsmen have done what I would ask hon. Members to do tonight, and that is to keep their eye on what is the real objective of the Bill, which is to arrange the funeral of development charge as tidily and speedily as possible and in accordance with Parliament's expressed intentions as disclosed in the 1953 Act. That being what we are concerned with in this Bill, if it does, in principle, attain those requirements, and I think it has been proved clearly that it does, what justification can there be for refusing it a Second Reading? By all means, let us introduce detailed criticism in Committee, but, surely, no one can seriously suggest that the Bill should not go forward at all. That, apparently, is what has been suggested, but on what grounds is it suggested?

The first part of the Amendment, on which so much stress has been laid today, reads as follows, and I read it again for reasons that will appear in a moment:

In fact, this wording has a previous conviction. These words are, practically verbatim, the words of an Amendment which the Opposition moved to the Second Reading of the 1953 Bill, and I quote from HANSARD:

If anything more were required to show that today's Amendment is put forward as a sham fight it is provided by what was said on that occasion by the legitimate parent of the proposition, the right hon. Member the Bishop— [ Laughter. ] I did not say "the Right Reverend Gentleman"—I meant the right hon. Gentleman the Member for Bishop Auckland (Mr. Dalton). We all regret that absence of the right hon. Gentleman and the reasons for it, but it is perhaps rather convenient for the Opposition that he is not here. I cannot imagine him supporting this Amendment and being able to keep a straight face. He would have a song in his heart if he remembered what he said on the previous occasion, which was:

The right hon. Gentleman went on to say, about the sacred development charge which has to be tied up with betterment:

The passing of the Bill will have absolutely no effect whatever on future policy in that field one way or the other. What we are agreed upon on both sides of the House is that the development charge is not the right way to do it, and that it is unjustifiable to hold up the necessary salvage operation until we have decided what else, if anything, is to be put in place of the development charge.

On this side of the House we do not agree with any of the alternatives which have been suggested. When I say "suggested," I mean by various hon. Members, but not by the hon. and learned Gentleman who moved the Amendment. He had no suggestion to make at all about it. The Amendment contains a rather woolly suggestion that it will be rather nice to find some other way of recovering betterment. It is worded so as not to displease any of the bifurcations and ramifications of the Opposition, with words carefully chosen to be equally applicable and acceptable to Henry George, David Lloyd George, "The Times," Karl Marx and the right hon. Member for Bbbw Vale (Mr. Bevan).

My right hon. Friend the Minister of Housing and Local Government did suggest that it would not be wise to rush in where people like some of those feared to tread. There was one name I ought to have mentioned. Lord Silkin. I will include him. No one who votes for the Amendment tonight will commit himself on the subject of betterment. The Amendment is simply a pious platitude and no one would seriously suggest or justify further delay in paying out money to claimants to which they are entitled under the Act of the previous Government in 1947. If the Opposition thought there was the slightest danger of winning the Division they would not dream of pressing the Amendment.

The remainder of the Amendment justifies one or two more words. The second part of it which is not the serious part, so far as most of the speeches today are concerned, deals with the alleged prejudice to local authorities. I have already dealt with that in answer to detailed questions, but I suggest that a little more sense of proportion might have been had with regard to it. After all, at the present time local authorities have enormous powers for acquiring land. There is, for example, Section 38 of the 1947 Act, which is very useful. It says that if the development is not being properly carried out the local authority can acquire the land to ensure that it is applied for that purpose.

There are many provisions of that kind, and the suggestion that local authorities will be unable to carry out their planning because of the parsimony of the Treasury is one with which my right hon. Friend has already dealt. After all, we are surely entitled to have a sense of proportion, and with a Budget of £4,000 million the suggestion that the relatively small amounts required for this purpose would be refused is surely not a sufficient one.

The final words of the Amendment deal, presumably, with the difference between the two values. The Government believe that that can be solved, and under the old provision there would also have been claim-free land. I cannot deal further with the Amendment because there is no more to deal with in it, but I can say that if ever there was, in the most literal sense of the word, a red herring, that is it. By voting for this Amendment, hon. Members opposite would be asking the House to reject the Bill and to refuse payment to those to

whom we honourably owe it. If they really think that is a proper reason for voting against its Second Reading, then that is a matter for their own consciences.

Question put, "That the words proposed to be left out stand part of the Question."

The House divided: Ayes, 296; Noes, 262.

Division No. 50.]

AYES

[9.58 p.m.

Allan, R. A. (Paddington, S.)

Deedes, W. F.

Hulbert, Wing Cdr. N. J.

Alport, C. J. M.

Digby, S. Wingfield

Hurd, A. R.

Amery, Julian (Preston, N.)

Dodds-Parker, A. D.

Hutchison, Sir Ian Clark (E'b'rgh, W.)

Amory, Rt. Hon. Heathcoat (Tiverton)

Donaldson, Cmdr. C. E. McA.

Hutchison, James (Scotstoun)

Anstruther-Gray, Major W. J.

Donner, Sir P. W.

Hyde, Lt.-Col. H. M.

Arbuthnot, John

Doughty, C. J. A.

Hylton-Foster, H. B. H.

Assheton, Rt. Hon. R. (Blackburn, W.)

Douglas-Hamilton, Lord Malcolm

Iremonger, T. L.

Astor, Hon. J. J.

Drayson, G. B.

Jenkins, Robert (Dulwich)

Baker, P. A. D.

Duthie, W. S.

Jennings, Sir Roland

Baldock, Lt.-Cmdr. J. M.

Eccles, Rt. Hon. Sir D. M.

Johnson, Eric (Blackley)

Baldwin, A. E.

Eden, Rt. Hon. A.

Johnson, Howard (Kemptown)

Banks, Col. C.

Eden, J. B. (Bournemouth, West)

Jones, A. (Hall Green)

Barber, Anthony

Elliot, Rt. Hon. W. E.

Joynson-Hicks, Hon. L. W.

Barlow, Sir John

Erroll, F. J.

Kaberry, D.

Baxter, A. B.

Fell, A.

Kerby, Capt. H. B

Beach, Maj. Hicks

Finlay, Graeme

Kerr, H. W.

Bell, Philip (Bolton, E.)

Fisher, Nigel

Lambert, Hon. G.

Bell, Ronald (Bucks, S.)

Fleetwood-Hesketh, R. F.

Lambton, Viscount

Bennett, F. M. (Reading, N.)

Fletcher, Sir Walter (Bury)

Lancaster, Col. C. G.

Bennett, Dr. Reginald (Gosport)

Fletcher-Cooke, C.

Langford-Holt, J. A.

Bennett, William (Woodside)

Ford, Mrs. Patricia

Leather, E. H. C.

Bevins, J. R. (Toxteth)

Foster, John

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

Birch, Nigel

Fraser, Sir Ian (Morecambe & Lonsdale)

Legh, Hon. Peter (Petersfield)

Bishop, F. P.

Fyfe, Rt. Hon. Sir David Maxwell

Lennox-Boyd, Rt. Hon. A. T.

Black, C. W.

Galbraith, Rt. Hon. T. D. (Pollok)

Lindsay, Martin

Boothby, Sir R. J. G.

Galbraith, T. G. D. (Hillhead)

Llewellyn, D. T.

Bossom, Sir A. C.

Gammans, L. D.

Lloyd, Rt. Hon. G. (King's Norton)

Bowen, E. R.

Garner-Evans, E. H.

Lloyd, Maj. Sir Guy (Renfrew, E.)

Boyd-Carpenter, Rt. Hon. J. A.

George, Rt. Hon. Maj. G. Lloyd

Lloyd, Rt. Hon. Selwyn (Wirral)

Boyle, Sir Edward

Glover, D.

Lockwood, Lt.-Col. J. C.

Braine, B. R.

Godber, J. B.

Longden, Gilbert

Braithwaite, Sir Albert (Harrow, W.)

Gomme-Duncan, Col. A.

Low, A. R. W.

Braithwaite, Sir Gurney

Gough, C. F. H.

Lucas, Sir Jocelyn (Portsmouth, S.)

Bromley-Davenport, Lt.-Col. W. H

Gower, H. R.

Lucas, P. B. (Brentford)

Brooke, Henry (Hampstead)

Graham, Sir Fergus

Lucas-Tooth, Sir Hugh

Brooman-White, R. C.

Grimond, J.

McAdden, S. J.

Browne, Jack (Govan)

Grimston, Hon. John (St. Albans)

McCorquodale, Rt. Hon. M. S.

Buchan-Hepburn, Rt. Hon. P. G. T

Grimston, Sir Robert (Westbury)

Macdonald, Sir Peter

Bullard, D. G.

Hall, John (Wycombe)

Mackeson, Brig. Sir Harry

Bullus, Wing Commander E. E.

Harden, J. R. E.

McKibbin, A. J.

Burden, F. F. A.

Hare, Hon. J. H.

Mackie, J. H. (Galloway)

Butcher, Sir Herbert

Harris, Frederic (Croydon, N.)

Maclean, Fitzroy

Butler, Rt. Hon. R. A. (Saffron Walden)

Harris, Reader (Heston)

Macleod, Rt. Hon. Iain (Enfield, W.)

Campbell, Sir David

Harrison, Col. J. H. (Eye)

MacLeod, John (Ross and Cromarty)

Carr, Robert

Harvey, Ian (Harrow, E.)

Macmillan, Rt. Hon. Harold (Bromley)

Cary, Sir Robert

Harvie-Watt, Sir George

Macpherson, Niall (Dumfries)

Channon, H.

Hay, John

Maitland, Comdr. J. F. W. (Horncastle)

Churchill, Rt. Hon. Sir Winston

Head, Rt. Hon, A. H.

Maitland, Patrick (Lanark)

Clarke, Col. Ralph (East Grinstead)

Heald, Rt. Hon. Sir Lionel

Manningham-Buller, Sir R. E.

Clarke, Brig. Terence (Portsmouth, W.)

Heath, Edward

Markham, Major Sir Frank

Clyde, Rt. Hon. J. L.

Higgs, J. M. C.

Marlowe, A. A. H.

Cole, Norman

Hill, Dr. Charles (Luton)

Marples, A. E.

Colegate, W. A.

Hill, Mrs. E. (Wythenshawe)

Marshall, Douglas (Bodmin)

Conant, Maj. R. J. E.

Hinchingbrooke, Viscount

Marshall, Sir Sidney (Sutton)

Cooper, Sqn. Ldr. Albert

Hirst, Geoffrey

Maude, Angus

Cooper-Key, E. M.

Holland-Martin, C. J.

Maudling, R.

Craddock, Beresford (Spelthorne)

Hollis, M. C.

Maydon, Lt.-Comdr. S. L. C

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

Holt, A F.

Medlicott, Brig. F.

Crosthwaite-Eyre, Col. O. E.

Hope, Lord John

Mellor, Sir John

Crouch, R. F.

Hornsby-Smith, Miss M. P

Molson, A. H. E.

Crowder, Sir John (Finchley)

Horobin, I. M.

Monckton, Rt. Hon. Sir Waller

Crowder, Petre (Ruislip—Northwood)

Horsbrugh, Rt. Hon. Florence

Moore, Sir Thomas

Darling, Sir William (Edinburgh, S.)

Howard, Gerald (Cambridgeshire)

Morrison, John (Salisbury)

Davidson, Viscountess

Howard, Hon. Greville (St. Ives)

Mott-Radclyffe, C. E.

Davies, Rt. Hn. Clement (Montgomery)

Hudson, Sir Austin (Lewisham, N.)

Nabarro, G. D. N.

De la Beère, Sir Rupert

Hudson, W. R. A. (Hull, N.)

Neave, Airey

Nicholls, Harmar

Ridsdale, J. E.

Thompson, Lt.-Cdr. R. (Croydon, W.)

Nicholson, Godfrey (Farnham)

Robertson, Sir David

Thorneycroft, Rt. Hn. Peter (Monmouth)

Nicolson, Nigel (Bournemouth, E.)

Robinson, Roland (Blackpool, S.)

Thornton-Kemsley, Col. C. N.

Nield, Basil (Chester)

Robson-Brown, W.

Tilney, John

Noble, Cmdr. A. H. P

Rodgers, John (Sevenoaks)

Touche, Sir Gordon

Nugent, G. R. H.

Roper, Sir Harold

Turner, H. F. L.

Nutting, Anthony

Ropner, Col. Sir Leonard

Turton, R. H.

Oakshott, H. D.

Ryder, Capt. R. E D

Tweedsmuir, Lady

Odey, G. W.

Sandys, Rt. Hon. D.

Vane, W. M. F.

O'Neill, Hon. Phelim (Co. Antrim, N.)

Schofield, Lt.-Col. W.

Vaughan-Morgan, J. K

Orr, Capt. L. P. S.

Scott, R. Donald

Vosper, D. F.

Orr-Ewing, Charles Iain (Hendon, N.)

Scott-Miller, Cmdr. R.

Wade, D. W.

Orr-Ewing, Sir Ian (Weston-super-Mare)

Shepherd, William

Wakefield, Edward (Derbyshire, W.)

Osborne, C.

Simon, J. E. S. (Middlesbrough, W.)

Wakefield, Sir Wavell (St. Marylebone)

Page, R. G.

Smithers, Peter (Winchester)

Walker-Smith, D. C.

Peake, Rt. Hon. O.

Smithers, Sir Waldron (Orpington)

Wall, P. H. B.

Perkins, Sir Robert

Smyth, Brig. J. G. (Norwood)

Ward, Hon. George (Worcester)

Peto, Brig. C. H. M

Soames, Capt. C

Ward, Miss I. (Tynemouth)

Peyton, J. W. W.

Spearman, A. C. M.

Waterhouse, Capt. Rt. Hon. C.

Pickthorn, K. W. M.

Speir, R. M.

Watkinson, H. A

Pilkington, Capt. R. A

Spence, H. R. (Aberdeenshire, W.)

Webbe, Sir H. (London & Westminster)

Pitman, I. J.

Spens, Rt. Hon. Sir P. (Kensington, S.)

Wellwood, W.

Pitt, Miss E. M

Stanley, Capt. Hon. Richard

Williams, Rt. Hon. Charles (Torquay)

Powell, J. Enoch

Stevens, G. P.

Williams, Gerald (Tonbridge)

Price, Henry (Lewisham, W.)

Stoddart-Scott, Col. M.

Williams, Sir Herbert (Croydon, E.)

Prior-Palmer, Brig. O. L.

Storey, S.

Williams, Paul (Sunderland, S.)

Profumo, J. D.

Strauss, Henry (Norwich, S.)

Williams, R. Dudley (Exeter)

Raikes, Sir Victor

Summers, G. S.

Wills, G.

Ramsden, J. E.

Sutcliffe, Sir Harold

Wilson, Geoffrey (Truro)

Rayner, Brig. R.

Taylor, William (Bradford, N.)

Wood, Hon. R.

Redmayne, M.

Teeling, W.

Rees-Davies, W. R.

Thomas, Rt. Hon. J. P. L. (Hereford)

TELLERS FOR THE AYES:

Remnant, Hon. P

Thomas, Leslie (Canterbury)

Sir Cedric Drewe and Mr. Studholme

Renton, D. L. M

Thompson, Kenneth (Walton)

NOES

Acland, Sir Richard

Crossman, R. H. S

Henderson, Rt. Hon. A. (Rowley Regis)

Adams, Richard

Cullen, Mrs. A.

Herbison, Miss M.

Albu, A. H.

Daines, P.

Hewitson, Capt. M.

Allen, Arthur (Bosworth)

Darling, George (Hillsborough)

Hobson, C. R

Allen, Scholefield (Crewe)

Davies, Ernest (Enfield, E.)

Holman, P.

Anderson, Frank (Whitehaven)

Davies, Stephen (Merthyr)

Holmes, Horace

Attlee, Rt. Hon. C. R.

de Freitas, Geoffrey

Houghton, Douglas

Awbery, S. S.

Deer, G.

Hoy, J. H.

Bacon, Miss Alice

Delargy, H. J.

Hudson, James (Ealing, N.)

Baird, J.

Dodds, N. N.

Hughes, Cledwyn (Anglesey)

Barnes, Rt. Hon. A. J

Donnelly, D. L.

Hughes, Emrys (S. Ayrshire)

Bartley, P.

Driberg, T. E. N.

Hughes, Hector (Aberdeen, N.)

Bellenger, Rt. Hon. F. J

Dugdale, Rt. Hon. John (W. Bromwich)

Hynd, H. (Accrington)

Bence, C. R.

Ede, Rt. Hon. J. C

Hynd, J. B. (Attercliffe)

Benn, Hon. Wedgwood

Edelman, M.

Irvine, A. J. (Edge Hill)

Benson, G.

Edwards, Rt. Hon. John (Brighouse)

Irving, W. J. (Wood Green)

Beswick, F.

Edwards, W. J. (Stepney)

Isaacs, Rt. Hon. G A.

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

Evans, Albert (Islington, S.W.)

Janner, B.

Blackburn, F.

Evans, Edward (Lowestoft)

Jay, Rt. Hon. D. P. T

Blenkinsop, A.

Evans, Stanley (Wednesbury)

Jeger, George (Goole)

Blyton, W. R.

Fernyhough, E.

Jeger, Mrs. Lena

Boardman, H.

Fienburgh, W.

Jenkins, R. H. (Stechford)

Bottomley, Rt. Hon. A. G

Finch, H. J.

Johnson, James (Rugby)

Bowles, F. G.

Fletcher, Eric (Islington, E.)

Johnston, Douglas (Paisley)

Braddock, Mrs. Elizabeth

Follick, M.

Jones, David (Hartlepool)

Brockway, A. F.

Foot, M. M.

Jones, Frederick Elwyn (West Ham, S.)

Brook, Dryden (Halifax)

Fraser, Thomas (Hamilton)

Jones, Jack (Rotherham)

Broughton, Dr. A. D. D.

Freeman, John (Watford)

Jones, T. W. (Merioneth)

Brown, Rt. Hon. George (Belper)

Freeman, Peter (Newport)

Keenan, W.

Brown, Thomas (Ince)

Gibson, C. W.

Kenyon, C.

Burke, W. A.

Glanville, James

Key, Rt. Hon. C. W

Burton, Miss F. E.

Gooch, E. G.

King, Dr. H. M.

Butler, Herbert (Hackney, S.)

Greenwood, Anthony (Rossendale)

Kinley, J.

Callaghan, L. J.

Grenfell, Rt. Hon. D. R.

Lee, Frederick (Newton)

Carmichael, J.

Grey, C. F.

Lee, Miss Jennie (Cannock)

Castle, Mrs. B. A.

Griffiths, David (Rother Valley)

Lever, Harold (Cheetham)

Champion, A. J.

Griffiths, William (Exchange)

Lever, Leslie (Ardwick)

Chapman, W. D.

Hall, Rt. Hon. Glenvil (Colne Valley)

Lewis, Arthur

Chetwynd, G. R

Hall, John T. (Gateshead, W.)

Lindgren, G. S.

Clunie, J.

Hamilton, W. W.

Lipton, Lt.-Col. M

Coldrick, W.

Hannan, W.

Logan, D. G.

Collick, P. H.

Hardy, E. A.

MacColl, J. E.

Corbet, Mrs. Freda

Hargreaves, A.

McGhee, H. G

Cove, W. G.

Harrison, J. (Nottingham. E.)

McInnes, J.

Craddock, George (Bradford, S.)

Hastings, S.

McKay, John (Wallsend)

Crosland, C. A. R.

Hayman, F. H.

McLeavy, F.

McNeil, Rt. Hon. H.

Porter, G.

Taylor, Rt. Hon. Robert (Morpeth)

MacPherson, Malcolm (Stirling)

Price, J. T. (Westhoughton)

Thomas, George (Cardiff)

Mainwaring, W. H.

Price, Philips (Gloucestershire, W.)

Thomas, Iorwerth (Rhondda, W.)

Mallalieu, E. L. (Brigg)

Proctor, W. T.

Thomas, Ivor Owen (Wrekin)

Mallalieu, J. P. W. (Huddersfield, E.)

Pursey, Cmdr. H.

Thomson, George (Dundee, E.)

Mann, Mrs. Jean

Rankin, John

Thornton, E.

Manuel, A. C.

Reeves, J.

Timmons, J.

Marquand, Rt. Hon. H. A.

Reid, Thomas (Swindon)

Tommy, F.

Mason, Roy

Reid, William (Camlachie)

Turner-Samuels, M.

Mayhew, C. P.

Rhodes, H.

Ungoed-Thomas, Sir Lynn

Mellish, R. J.

Robens, Rt. Hon. A.

Usborne, H. C.

Messer, Sir F.

Roberts, Albert (Normanton)

Viant, S. P.

Mikardo, Ian

Robinson, Kenneth (St. Pancras, N.)

Wallace, H. W.

Mitchison, G. R.

Rogers, George (Kensington, N.)

Warbey, W. N.

Monslow, W.

Ross, William

Watkins, T. E.

Moody, A. S.

Royle, C.

Webb, Rt. Hon. M. (Bradford, C.)

Morgan, Dr. H. B. W.

Shackleton, E. A. A.

Weitzman, D.

Morley, R.

Shawcross, Rt. Hon. Sir Hartley

Wells, Percy (Faversham)

Morris, Percy (Swansea, W.)

Shinwell, Rt. Hon. E.

Wells, William (Walsall)

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

Short, E. W.

West, D. G.

Mort, D. L.

Shurmer, P. L. E.

White, Mrs. Eirene (E. Flint)

Moyle, A.

Silverman, Julius (Erdington)

White, Henry (Derbyshire, N.E.)

Mulley, F. W.

Silverman, Sydney (Nelson)

Whiteley, Rt. Hon. W.

Murray, J. D.

Simmons, C. J. (Brierley Hill)

Wigg, George

Neal, Harold (Bolsover)

Skeffington, A. M.

Wilcock, Group Capt. C. A. B.

Noel-Baker, Rt. Hon. P. J.

Slater, J. (Durham, Sedgefield)

Wilkins, W. A.

Oldfield, W. H.

Smith, Ellis (Stoke, S.)

Willey, F. T.

Oliver, G. H.

Smith, Norman (Nottingham, S.)

Williams, David (Neath)

Orbach, M.

Snow, J. W.

Williams, Rev. Llywelyn (Abertillery)

Oswald, T.

Sorensen, R. W.

Williams, Ronald (Wigan)

Padley, W. E.

Soskice, Rt. Hon. Sir Frank

Williams, Rt. Hon. Thomas (Don V'll'y)

Paget, R. T.

Sparks, J. A.

Williams, W. R. (Droylsden)

Paling, Rt. Hon. W. (Dearne Valley)

Steele, T.

Williams, W. T. (Hammersmith, S.)

Paling, Will T. (Dewsbury)

Stewart, Michael (Fulham, E.)

Wilson, Rt. Hon. Harold (Huyton)

Palmer, A. M. F.

Strachey, Rt. Hon. J

Winterbottom, Ian ((Nottingham, C.)

Pannell, Charles

Strauss, Rt. Hon. George (Vauxhall)

Winterbottom, Richard (Brightside)

Pargiter, G. A.

Stross, Dr. Barnett

Woodburn, Rt. Hon. A.

Parker, J.

Summerskill, Rt. Hon. E.

Wyatt, W. L.

Parkin, B. T.

Swingler, S. T.

Yates, V. F.

Peart, T. F.

Sylvester, G. O.

Younger, Rt. Hon. K.

Plummer, Sir Leslie

Taylor, Bernard (Mansfield)

Popplewell, E.

Taylor, John (West Lothian)

TELLERS FOR THE NOES:

Mr. Bowden and Mr. Pearson.

Bill accordingly read a Second Time, and committed to a Standing Committee.

Post Office (Site and Railway) Bill

Mr. Hobson, Sir R. Perkins, Mr. Pitman and Mr. W. R. Williams nominated Members of the Select Committee.— [ Mr. Kaberry. ]

Church of England Measures

10.10 p.m.

I beg to move, with post-war values. By a series of Orders in Council under the Cathedrals Measure, 1931, new statutes were made in the period before the war which defined the duties of these cathedral dignitaries and also fixed the maximum stipends which might be paid to them out of the cathedral revenues. These maxima were all fixed at pre-war rates and were frequently expressed to be no more than £600 per annum for a canon.

Under the same Measure of 1931, the Church Commissioners are authorised, by resolution of the Church Assembly, to make grants for the benefit of living agents in cathedrals, but the Measure requires any such grant—this is the important part—to be paid into the cathedral revenues, which are subject to the limitations to which I have referred. The result is that no grant made by the Commissioners at present can be effective to raise beyond the maximum pre-war figure the stipends of these hard-pressed, highly-deserving and specially-qualified clergy.

The Measure now before the House seeks to remedy this inequitable situation by enabling the Commissioners to make grants direct to the individuals concerned and so take them outside the ban imposed by the statutes. The difficulty does not arise in connection with the stipends of other clergy or of the officers and servants of cathedrals. There is no statutory limitation upon them and the Commissioners, in fact, make grants as may be required. I trust that the House will accept this remedial Measure as wholly justified and necessary.

I should like, very briefly, to welcome the Measure. There is much talk about the hardships endured by different sections of the community but, very rightly, the clergy are the last ever to complain and when the public think of the body of the clergy in general I fear that they may often fancy them to be relatively well-paid. Certainly the last, they would imagine, to suffer any hardship are the clergy living within the cathedral close.

But these clergy have a particular duty to society. They are involved in the social duties of leadership, whether they like them or not—and they very often do not like them. They are also involved in particular difficulties in having to live in rather large houses which, nevertheless, the public wish them to continue to occupy, as part of the machinery of the cathedral organisation. They are very important to the Church in that they must provide intellectual leadership and must also keep going the centres of intellectual activity which revolve around the great collegiate churches.

I therefore welcome this Measure. As my garden wall is the wall of the cathedral close of my own city, I am sensible of how useful this Measure will be to the cathedral community.

Question put, and agreed to.

10.15 p.m.

I beg to move, taken place, and are still taking place, throughout the country owing to operations under the housing acts, the Town and Country Planning Act and the New Towns Acts. Hundreds of thousands of people, as the House knows, are being rehoused, largely in new areas. Where the people go, I suggest that the Church of England must follow; and in these areas there must be church buildings in which the parson can minister and the people can worship and be instructed.

This was part of the problem considered by the Church Assembly in 1952 upon the report of a committee specially set up by the Assembly to consider the needs of new housing areas. As a result, the Assembly asked the Church Commissioners to convene conferences of diocesan representatives to keep the problem under review, and at these conferences it was clear that substantial financial help would be needed to provide new buildings.

The Church Commissioners are financially ready, and are able, I am glad to say, without detriment to other proper calls upon them, to make a substantial contribution by way of grants and loans. But though their general fund is available, under an Act of 1840, for making additional provisions for the cure of souls in parishes where such assistance is required, their predecessors, who were the Ecclesiastical Commissioners, have normally confined their grants in the absence of special statutory authority, to the living agent.

The Commissioners, following this precedent, now seek to be empowered by this Measure, which was passed through the Church Assembly in all its stages without a division. If this Measure is passed, the Commissioners will be able to grant loans for church buildings, an expression which includes churches, halls and ministers' houses, and the buying of sites for them in two classes of area—the first class being the post-war areas and the second class the area in the course of development in the three years before the war, in which the outbreak of the war and the war period and its aftermath have so far precluded the erection of church buildings. I feel sure that the House will have no difficulty in finding that this Measure will prove to be an invaluable contribution towards bringing spiritual life and moral well-being to these large and numerous areas.

10.18 p.m.

I beg to second the Motion.

I should like to correct a slip of the tongue of my hon. Friend the Member for Finchley (Sir J. Crowder). The Measure authorises not only loans but also grants for the purpose of these church buildings. I cannot believe that anyone in the House does not feel that it really is necessary in these times of growing communities and new towns that the Church should have power to provide for buildings in connection with the churches. I do not think that the House will have any hesitation about agreeing to the Motion.

10.20 p.m.

I know that it is usually understood in these debates that members of the Church of England have some pre-eminent quality for dealing with the issues which come before us, and I sympathise with the claim that is made in that respect. All the same, the House of Commons is empowered by the general relationship of Church and State—not only empowered, but from time to time required—to examine rather closely the proposals that are made.

I observe that in this proposal there is not only the question of loans and grants for the purpose of providing churches and church halls, but there is the question of loans and grants for houses for ministers in new districts. Certainly it is right to make such a claim, and ministers ought to be properly provided with such houses, but it should be observed that in the discussion of the previous Measure that we had before us we were told that the public were of the opinion that large houses were the order of the day.

I am sure the hon. Member will allow me to correct that. What I was endeavouring to say was that in the case of cathedral closes where there are very historic houses, the public would on the whole be sorry to see the clergy not able to go on living in them.

The hon. Member has to some extent qualified his earlier statement, but I still find it a statement open to criticism because I do not believe that public opinion in these days is any longer attached, whether in the case of cathedral closes or anywhere else, to the notion that ministers should live in houses altogether bigger than those that are occupied by the flocks to whose needs they minster. Considering that we have just agreed to a Measure that will absorb funds—loans and otherwise—for these larger premises, to that extent there will be greater difficulty in providing reasonable accommodation for ministers in new housing estates.

I want to see such accommodation; I want to see a very considerable extension of activities on behalf of the extension of the teaching of Christianity. I will not put it in any other form. I want to see that work going on in every part of the country, and proper provision being made for those who, on behalf not only of the Church but—in view of the special arrangements made with the Church—on behalf of the whole community, carry on that work in the new housing areas.

That the minister of religion should have reasonable premises in which to live in those new housing areas is not in doubt, but we have had put before us tonight an example of the essential weakness in much that goes on in the church today, namely, that in certain parts of the country and for certain persons in the church, provision is made out of all proportion to the newer view that the community takes about the essential characteristic of the Christian religion.

Until more account is taken of that, I do not think that when Measures of this sort are brought before us it is altogether easy for Parliament to give an uncoloured decision in matters of the kind with which we are now dealing. Certainly I agree with the proposal that is now being made to us, but I think we should have done well to have examined the last proposal in greater detail, in view of the decision which we are now taking.

10.24 p.m.

I know that it is not the wish of any clergyman to live in a large house. Even if it were his wish, I think that his wife would have something to say about it. I am sorry for those who are forced to live in large houses in cathedral closes, as referred to in the Measure to which the House has agreed.

I am sure that the hon. Member for Ealing, North (Mr. J. Hudson) will agree that no clergyman wishes to live in a house of more than the minimum size. The wretched parson's wife, who is an unpaid assistant curate, has to do all the housework and help him run the parish. The hon. Member can set his mind at rest; there is no danger of any house built for a minister under this Measure being one square foot above the minimum of what is required.

10.25 p.m.

I agree with what has been said by the hon. Member for Farnham (Mr. Nicholson), and as a member of the Historic Buildings Commission I can only say that I am very glad that the cathedral clergy will continue to live in some of those houses and maintain them, for I am afraid that most of them would otherwise fall to be dealt with out of the limited funds with which this House has provided the Historic Buildings Commission to look after them. Some of those houses are amongst the most delightful specimens of architecture that we have in this country. I join with the hon. Member for Farnham in sympathising with the residential clergy and their wives in having to maintain houses of that size at this time, and to have to preserve the fabric which is so essential to the amenities of life in a cathedral city.

There was one phrase used by the hon. Member for Finchley (Sir J. Crowder) on which I should like to comment. He said that where the population moved the Church of England should follow. I am bound to say that that reveals one of the difficulties of the new towns and the big new estates. People get there first and the churches and other forms of social activity often follow, though at far too remote a time, because if there is one thing that is needed in these new areas, whether they be new towns or new suburbs, it is to be able to have community life from the moment that the people begin to arrive. Whether it be the provision of schools or churches or even places where people meet for social contact and spiritual and intellectual refreshment, we still fail to some extent in meeting requirements beforehand.

One of the regrets I have is that this complicated procedure has still to be fol- lowed by the established Church in dealing with this kind of thing. Speaking as a Nonconformist, it is a matter of great regret to me that the Church of England should have to submit matters of this kind for internal arrangements in her corporate life to people of all denominations and of none. I hope the time will not be too far distant when the Church of England will be freed from having to come to this assembly, where, as was shown in the not too distant past, the spiritual life of the nation takes a very secondary part in our discussions to the airing of matters that divide rather than those that unite in matters of religion.

There was a time when the disestablishment of the Church was a burning issue in the country. I have long reached the conclusion that if it ever comes it will come at the request of the Church, and as far as one can see—and speaking as one who is not a member of the Church—in the interests of the Church the sooner that day comes the better.

Question put, and agreed to.

10.30 p.m.

I beg to move,

The nature of these schemes is the general rearrangement of the pastoral supervision of certain areas in which this has become essential because, for example, of destruction of churches by enemy action, war damage in general, and movements of population under civil redevelopment schemes. These areas are already limited in number and no more can be created now.

The need for the proposed extension is due to circumstances beyond the control of the Church. It is obvious that, to be effective, any church plan must be in step with the new layout to be imposed by the civil replanning schemes. In fact, formal notice of all schemes in draft must be given to the local planning authorities, who have the right to object and whose plans are thus a dominant consideration in settling a church plan.

Civil reconstruction has, indeed, proceeded so well that already 57 schemes are in actual operation and the Church Commissioners are still preparing under the 1944 Measure another 22 schemes. The civil reconstruction has not everywhere proceeded at the same rate, and where there is a lag, the church plan has also had to wait. Thus, if the Measure is not extended, the church plan may be severely hampered because the appropriate powers will have lapsed.

The Church Assembly therefore asks for an extension of time so that the life of the Church in these areas may not suffer. The present Measure, as originally drafted and presented to the Assembly, provided for an extension period of 10 years, but the Assembly accepted an amendment reducing this to three years as it considered that the life of the 1944 Measure should not be extended beyond what was absolutely essential.

I may add, in conclusion, that the procedure governing these schemes is quite straightforward. Before anything else is done, the diocesan authorities must consult everybody likely to be affected. Then the Church Commissioners, before preparing a scheme, must be satisfied that the proposals are fair. The draft scheme must be sent to all those affected, includ- ing the local planning authorities, all of whom have the full right to object. If objections at that stage are not settled by direct negotiation, appeal can be made to the special committee for a determination.

There is then a final safeguard. Every scheme of this nature must be laid before both Houses of Parliament and either House can disapprove the scheme, with the effect of annulling it. Since this Measure seeks only to prolong for another three years the 1944 Measure, which the House agreed to in 1944, I trust that hon. Members will accept it as being essential to complete the work which Parliament then considered necessary.

10.34 p.m.

I beg to second the Motion.

I am sorry that it has been necessary to ask for an extension. The reorganisation schemes have not been easy. In some parts of the country they have been carried out well within the 10 years, but in others there has been a lag, and I suppose it is right that there should be an extension of the period. However, I was glad to hear that the original proposal, that the extension should be for as long as 10 years, was reduced by the Church Assembly to only three years. Under those circumstances I think it is probably right that we should agree to this Measure but, on the other hand, it is essential that both the civil authorities and the ecclesiastical authorities should work together and carry through these Measures.

Question put, and agreed to.

Afforestation, Wales

Motion made, and Question proposed, "That this House do now adjourn."—[ Sir C. Drewe. ]

10.37 p.m.

I think it proper that any discussion of afforestation in general and Welsh afforestation in particular should be prefaced by a tribute—in my case a very sincere tribute—to my right hon. Friend the Member for Gower (Mr. Grenfell), the Father of the House. He is an original member of the Forestry Commission and for 20 years rendered brilliant and distinctive service. I feel particularly proud to have him sitting alongside me on this occasion.

The reason why I have chosen to introduce this subject is because of my desire to pay a tribute to the work done in the past by the Forestry Commission in the Principality. The initial contract was to take over 800,000 acres of woodland in 50 years, 700,000 of those acres to be the creation of new forests and 100,000 acres of existing woodland under private ownership to be brought into full production; and all that without interfering with food production.

It may be thought that such a target was too ambitious. We are certainly far from achieving it. At present, we have fewer than 200,000 acres in 84 forest units in which about 3,000 people are employed, and 30 of the 50 years are already gone. One asks, "What are the chief difficulties? Why is it that we are so far from achieving our target, and so unlikely to do so?"

One obvious explanation is immediately apparent. It is the hold up during the war years of any real afforestation expansion. But I suggest that the principal difficulty is the lack of land, or, to put it in a more correct way, the problem of acquiring land suitable for afforestation. The traditional pattern of farming and land ownership in Wales is fundamentally different from that in Scotland and, to a lesser degree, from that in England. In Wales, by and large, the farms are smaller. Farming units compared with those of Scotland are very small indeed.

This, obviously, must be taken into consideration when we seek to achieve that synthesis which all of us I am sure believe to be necessary as between aforestation and agriculture. We all believe that these small parcels of farmlands, when they are taken over, must be merged and integrated naturally into these forestry units.

My reading of the Government White Paper on Rural Wales makes me believe that it is Government policy to achieve a harmonious integrated relationship between farm units, particularly where poor grazing land is concerned, and afforestation schemes which we may have in future. I stand to be corrected if I am wrong, but with regard to the acquisition of land to the best of my knowledge there has been only one instance in Wales of compulsory purchase. Unfortunately, we have in the Principality some sort of traditional prejudice—possibly the word "prejudice" is too strong and I should call it perhaps "fear"—of afforestation.

All of us, I presume, in our instincts and habits are conservative, with a small "c." It takes time for this traditional prejudice to be overcome. During the last few days I have been reading the report of the Welsh Committee of the National Farmers' Union which studied the White Paper on Rural Wales. While they are very guarded, one can perceive, without reading too much between the lines, that there is this innate suspicion of afforestation. Their way of expressing those fears is usually in a form of some sort of negative appraisal, damning with faint praise any forestry objects and proposals.

We had a graphic illustration of this prejudice in the notorious Towy Valley dispute. [ Laughter. ] I do not want to discuss the unfortunate history of that episode, but I would remind hon. Members who are laughing that there was a tremendous amount of misrepresentation about the Labour Government, the Labour Minister of Agriculture and the Forestry Commission in that dispute. It was highly coloured by the unnecessary dragging in of nationalist sentiment.

I do not suggest for one moment that it was a black and white matter with all the right on one side and all the wrong on the other. It was magnified to the proportions of a national scandal in an irresponsible way.

I cannot give way, because I have not sufficient time. I can discuss that point amicably with my hon. and learned Friend after the debate has concluded.

The strange thing is that one of those tenant farmers is now voluntarily and freely entering into negotiations with the Forestry Commission—

The hon. and learned Member calls this tenant farmer a Judas. This farmer voluntarily seeks to enter into negotiations with the Forestry Commission.

I am far from convinced that these small hill farms are economic units.

On these small farms of 60 or 70 acres the farmers bravely struggle against almost insuperable difficulties. I do not believe that these small farms can function economically as things are. Fifty per cent, of their income comes from subsidies.

As one who believes in economic planning, I think that the solution of their difficulties may well be in some plan of amalgamation, or co-operative farming, or, perhaps, a mixture of afforestation with farming—the rough grazing for planting and the better land remaining in agricultural use. I am completely convinced that what we read in this Report about these small hill farmers being the only true representatives of what is called the Welsh way of life is a complete farrago of nonsense.

The true representatives of the Welsh way of life, far from being the small hill farmers, are I suggest, to be found in the small industrial communities in the valleys—

—and not in these lonely, isolated farms in the hill country represented by my hon. Friend.

The N.F.U. should realise that we are living in 1954, and that in this harsh competitive world we cannot afford to indulge in pseudo-sentiment about these hill farmers. The Minister for Welsh Affairs has more than once expressed his abhor- rence at the thought of using compulsory powers. I share that abhorrence. No one wants to use those powers if it can be humanly avoided, but if this sentence from the Government White Paper is to be taken seriously at all, the question must arise whether those powers will not have to be used against recalcitrant or awkward tenant farmers. The White Paper says:

I am sure that the hon. Gentleman will agree it is essential, during any interim period, when we have said that we are not going to use compulsory powers, that we mean that because it is no good—as I know—negotiating with these Welsh farmers if you have a blackjack behind your back. Compulsory powers ultimately may be necessary, but during the intervening period I hope he will make it clear that he thinks that we should not hold that weapon behind our back as a potential threat.

I have made my point clear, and to the best of my knowledge only on one occasion have these compulsory powers been used.

With other hon. Members I toured the Welsh forests last September, and I want to refer to one of the more successful afforestation schemes in the Principality—that at Coed Morgannwg. Last year, the older plantations in this woodland yielded 105,200 cubic feet or 3,500 tons of timber, of which 90,500 cubic feet or 3,017 tons were in the form of pit props for the collieries of South Wales, and it is just possible that shows a tremendous amount of dollar saving.

It has a forest road of over 20 miles called Ffordd y Frenhines to commemorate the Coronation of Her Majesty. Large tracts of mountainous country have been opened up; over 314 forestry workers are employed; scores of houses have been built for the workers, and even 20 new small collieries of the drift type have come into production in the last five years. Despite disastrous fires in this great forest I believe it is going on to great achievements in the future. In this forest there is a happy integration of agriculture and afforestation.

In Esgairgeiliog, in the Dovey Forest, I saw an example of a forestry village settlement, with a fine village hall and well fitted labour-saving houses. There are other first-rate forestry villages in Llwynygog—the Grove of the Cuckoo—in Hafren Forest, Montgomeryshire, and Aberfridwr, Lake Vyrnery Woodlands, Montgomeryshire.

It is in this sort of thing we have a possible answer to the drift from the rural countryside. The young people will not live in remote isolated farmsteads with no modern amenities. The solution may well lie in the setting up of these forestry communities. And as these forests develop, sawing mills and auxiliary industries like wheel-making can be set up. I have seen similar villages in the Black Forest in Germany and they add to the prosperity of the countryside. That is the answer to rural depopulation.

I should like to refer the Minister to the position in Anglesey. We have there a large unemployment figure and it is an area without afforestation schemes, and my hon. Friend who is so zealous in his safeguarding of the interests of the mother of Wales, as Anglesey is often described, would be very glad, I am sure, to co-operate with the Forestry Commission in that particular place.

I am compelled by the exigencies of time to forgo some of the other things I wanted to say in order to give the Minister an opportunity to reply, but I want to assure him that some of us here have great faith in forestry. We have seen it work and we believe that it should be given every encouragement for greater expansion yet in the future.

10.55 p.m.

I will not refer again to the remarks about compulsion, but will merely mention one or two other specific points very quickly. Perhaps if the Minister could not deal with them now he could bear them in mind.

It is a curious thing that while the Forestry Commission is charged with preserving the amenities, that is, the beauty of Wales or any other part, where it is a question of felling existing woodlands and replanting, there is no duty at all put on the Commission to preserve the amenities when it comes to original planting. That is well worth looking into.

Secondly, on the forestry settlement for which I have as much admiration as the hon. Member for Abertillery (Rev. Ll. Williams), I maintain that we ought to watch carefully the idea of a Welsh village and not just have a place representing only the workers in the Commission as such. We want to encourage all, whether farmers, shopkeepers or anything else, to make genuine Welsh community life and not just have labour camps for forestry workers alone.

Thirdly, one of the things which makes for difficulty is the fact that a forestry worker's basic wage starts off at all times at 2s. more than that of the agricultural worker. That really does make for difficulties in a village community when a farm worker who is out in the storm for hours knows that he is earning 2s. less than the forestry worker.

10.57 p.m.

The Joint Parliamentary Secretary to the Ministry of Agriculture and Fisheries
(Mr. G. R. H. Nugent)

I must congratulate the hon. Member for Abertillery (Rev. Ll. Williams) for raising this interesting and very important subject, particularly for Wales. Despite his interpretation of the target, on which I shall make a comment in a minute, I think he will agree that the Forestry Commission has already made good progress and shows every sign of making even greater progress in the years to come.

I think the hon. Member has slightly confused the figures in the forecasts he gave. I am advised that the White Paper of 1943 gave a target of 800,000 acres State forest and private woodlands to be brought into full production in 50 years from 1946, so that in fact they have really had only eight years in which to do it, and the progress made in that time is, relatively speaking, up to schedule.

That is not part of the original target of one million acres.

Irrespective of the right hon. Member's comment, in the terms of the White Paper of 1943 the programme is proceeding according to schedule. It is true that we want to see the acquisitions going on fairly rapidly, but there are about four years' reserves still in hand and I think the Forestry Commission may well come up to its original target.

I should like to give the figures of what the Commission has done in Wales since it was set up. Its total plantings, to which the hon. Member referred, are 147,000 acres and the rate of planting has very materially increased in the last few years. In 1949, plantings were at the rate of 9,000 acres a year, but in 1953 they came up to 11,000 to 12,000 a year, and I think there is a fair prospect that the rate will continue to increase. The total land it has acquired runs to over a quarter of a million acres.

The hon. Gentleman mentioned that there were 3,000 employed in forestry, but with more planting these numbers will increase and eventually the density of employment will exceed that for hill farming. Not only are there the actual men employed in afforestation, but there are the ancillary workers as well. The ratio is reckoned to be some four to one when mature trees are being felled, so that the final result will be a very considerable additional source of employment in Wales.

The actual expenditure at present is about £1¾ million per annum. That includes wages, and all that will steadily increase. I made a particular note of the plantations in industrial Wales in which, I think, everyone is interested. There has been a considerable increase. In 1946, there were some nine units of 14,000 acres, and, in 1953, 18 units with some 31,000 acres with about another 10,000 acres to be planted. Apart from the forestry value of these plantations on land which otherwise would be of little or no value, there is the amenity.

Seeing the young trees growing is something which gladdens the heart of everyone, particularly in the industrial areas. I see that the South Wales Conservancy, which has a good deal of this industrial area, employs about 1,600 men. This includes some 93 registered disabled, some of whom, undoubtedly, were injured at their work in the collieries.

On that side of the picture I think the Forestry Commission has a good tale to tell, and it is the Government's policy that afforestation should play an even greater part in rural Wales. That was discussed by my right hon. and learned Friend the Minister for Welsh Affairs in the recent debate which we had on Wales. My right hon. and learned Friend made it plain that this development should take place in an harmonious fashion, integrating with agriculture as a partner and not as a competitor. He made this particularly clear in a speech which he made at Llandrindod Wells, on 13th February last, when he said:

In the very short time that is left to me, I can hardly cover that subject as well.

We believe that it will be possible to acquire the necessary acreage, and we are quite convinced that it would not be in a spirit in any way acceptable in Wales to proceed with compulsory powers. The hon. Gentleman is quite right; there has been only one use of them in the past. The general approach of the Forestry Commission to purchasing policy, namely, buying at £5 an acre, and only exceptionally rising to £10 an acre, automatically limits it to only the thinnest, poorest land.

Private planting is still proceeding on a very small scale. It has increased to 1,400 acres in 1953 but there is a large acreage of neglected woodland. The Forestry Commission is doing what it can to encourage more replanting of the very large acreage of neglected wood- land by such schemes as the dedication scheme, the approved wood scheme and small woods scheme, and by encouraging the formation of woodland societies. But the response could be much greater.

In the survey which the Forestry Commission has launched it has encouraged a large number of private owners to undertake to manage their woodlands—

The Question having been proposed after Ten o'clock, and the debate having continued for half an hour, Mr. SPEAKER adjourned the House without Question put, pursuant to the Standing Order.

Adjourned at Seven Minutes past Eleven o'clock.