Skip to main content

Commons Chamber

Volume 525: debated on Wednesday 17 March 1954

House of Commons

Wednesday, March 17, 1954

The House met at Half past Two o'Clock

Prayers

[Mr. SPEAKER in the Chair ]

Private Business

Kent Water Bill

I beg to move,

"That it is expedient that the Bill be committed to a Joint Committee of Lords and Commons,"

This Bill, which has had its Second Reading, proposes to alter the arrangements for water supply in Kent. The costs both of the Kent County Council, which promotes the Bill, and the 14 local authorities which oppose it will fall heavily on the ratepayers, and a Committee stage in each House will be unusually expensive. I recommend the Motion to the House in the interests of economy. It has the unanimous support of all the 18 hon. Members who represent constituencies in Kent.

Question put, and agreed to.

To be communicated to the Lords and their concurrence desired thereto.

Metropolitan Common Scheme (Ham) Provisional Order Bill

"to confirm a Scheme for amending a Scheme under the Metropolitan Commons Acts, 1866 to 1898, with respect to Ham Common in the County of Surrey," presented by Sir T. Dugdale; read the First time; and referred to the Examiners of Petitions for Private Bills, and to be printed. [Bill 83.]

Petition

Greyhound Racing (Taxation)

Mr. Speaker, with your permission, I desire to present a humble Petition to this honourable House. The Petition is presented on behalf of many hundreds of thousands of working people who follow the sport of greyhound racing. I wish to state that I have absolutely no personal, financial or business connection in any way whatever with greyhound racing. I have never attended a greyhound race meeting or had a bet on greyhound racing. I am keenly interested, however, in seeing that justice is done to a very large section of Her Majesty's subjects by removing the penal and discriminatory 10 per cent, tax which is now made on greyhound totalisators.

The Petition, which is signed by 148,000, reads as follows:

To lie upon the Table.

Oral Answers to Questions

Wireless and Television

B.B.C. (Broadcasts by Communists)

asked the Assistant Postmaster-General what notice he has given to the British Broadcasting Corporation, under Section 15 (4) of the Licence and Agreement, regarding broadcasts by Communists.

Does the hon. Gentleman agree that the question of censorship is important, and will he give an assurance that there will be no repetition of the case in which there was, in fact, political censorship and discrimination, namely, when the broadcast by a Communist boy scout was cancelled owing to the abuse by the hon. Member for Dorset, North (Mr. Crouch) of his political position?

I cannot give any guarantee for the future. The hon. Gentleman asked what happened in the past. I assure him that no directions have been given to the B.B.C. at any time about Communists.

Low-power Station, Isle of Wight

asked the Assistant Postmaster-General what progress is being made on the Isle of Wight television station; and if he can now name the date when it will be completed.

It is too early to add to my reply to the hon. Member on 28th October, 1953, when I said that the B.B.C. expect to have a temporary low-power station working by the end of 1954. I understand from the Corporation that work is going ahead satisfactorily.

Is the Minister aware that reception of television programmes in south Hampshire is particularly bad? Will he do everything he can to speed up the provision of the station in the Isle of Wight?

Yes, Sir. I do not expect reception on the south coast to be good until the Isle of Wight station is in operation.

Sponsored Television

asked the Assistant Postmaster-General whether, in view of the wide national disagreement that has been expressed by varying political, educational and religious opinion on the question of sponsored television, he will recommend the appointment of a Royal Commission to inquire into all matters relative to this subject, and hold in abeyance the Government's proposals on sponsored television until that commission has reported

I anticipated that reply. Can the Assistant Postmaster-General give us any logical reason why, when there is such a wide divergence of opinion among many great and honourable people and organisations, and even among the Tories, there should not be a complete, impartial and independent examination, such as is suggested in the Question, so that we may know exactly what is the truth?

I suggest that the House of Commons is the proper place to discuss these matters. The Government had a healthy majority in the debates on the two White Papers, when the House had a full opportunity of discussing the question.

Is the hon. Gentleman aware that the contents of the Bill which is shortly to be brought forward are not the same as the proposals which were set out in the White Paper, and that it has aroused even greater disquiet and doubt on both sides of the House?

Sub-Postmasters' Remuneration

asked the Assistant Postmaster-General what difference will be effected in the remuneration of sub-postmasters by the increased telegraphic charges.

At the outset the remuneration of sub-postmasters would not be changed: the ultimate changes could not be assessed until the effect of the increased charges on telegrams was known.

The actual rate of remuneration may not be altered, but has my hon. Friend made any assessment as to the reduction in the number of telegrams likely to be despatched and delivered by sub-postmasters?

It is rather difficult to do so. We have made a rough assessment, but I do not think it will affect the remuneration of sub-postmasters, at any rate at the beginning.

Is it not clear that the remuneration of sub-postmasters ought to be increased in any circumstances, because of the inadequate facilities now provided, due to the unwillingness of people to take on the job of sub-postmaster?

Television Authority (Licence)

asked the Assistant Postmaster-General if he will lay before the House a copy of the licence which will be issued to the independent Television Authority.

The licence, which is largely technical, will be laid in draft before the debate on Second Reading of the Television Bill. The terms of the licence cannot, of course, be finally settled at this early stage.

B.B.C. (Television Development Plan)

asked the Assistant Postmaster-General what consideration he has given to the British Broadcasting Corporation's plan to start a second British Broadcasting Corporation television programme in 1957 without any further increase in licence fee; and what decision he proposes to make in this matter.

The 10-year development plan announced by the B.B.C. in June, 1953, made provision for the introduction of a second television programme, but my noble Friend has not yet been asked to authorise any such specific proposal as the hon. Member suggests.

If the B.B.C. can produce a second television programme without any increase in the present licence fee why, according to the Minister's statement, should the fee be raised from £3 to £5 if anyone else does so?

Does my hon. Friend think that it would be wise to delay a second B.B.C television programme until some approved system of colour is introduced, which would be widely welcomed in this country?

Television Licence Fees

asked the Assistant Postmaster-General on what assumptions, as to the cost of the second television programme and the number of licences sold, he bases his estimate that a £5 licence would be required to finance two television programmes.

The basic assumption was that the B.B.C. would provide a second television programme in 1955–56 for the same number of hours a day as we expect from the new authority. It was also assumed that there would be 4·3 million television licences, and that the second programme would cost as much in revenue expenditure, and one-third in capital expenditure, as the B.B.C's. existing television programme this year. Allowance was then made for Income Tax, Post Office costs, and contribution to the Exchequer, but no subsidy to television from sound.

It has never been suggested that the £5 licence would be needed if the B.B.C. were allowed to provide its second programme as part of its normal development plan. This would mean that it would start not earlier than 1957 and would have to build up from an hour or two a day to start with.

Is the Minister aware that the opinion is widely held that his calculation about a £5 licence is grossly inaccurate and gives a misleading impression? Is he aware that 5 million licences at £4 would provide, after ordinary deductions, £13 million a year? Is not that enough to finance two public service corporations in the next few years until the number of licences rises above 5 million?

I think there has been a certain amount of confusion about this point. I have looked up what has been said by my right hon. and learned Friend the Home Secretary and by myself, and I find we have made it perfectly clear that if we want a second programme now the licence would cost £5.

When the hon. Gentleman mentions a second programme now, will he tell us how many stations he has in mind? Does he mean, one, two or three stations, or a national coverage? What has he in mind, and how long would this capital development take?

What the hon. Gentleman is asking is that I should explain a figure of £5 which I gave to the House a short time ago. The point is that if we did provide a second programme now, that is to say, if we gave national coverage equal to the five original B.B.C. stations, the licence would cost about £5.

Does my hon. Friend think that when we have more than one television programme the fees of the existing M.P. stars will rise unduly because they will have competition from other M.Ps.?

asked the Assistant Postmaster-General whether the extra £1 for the service of commercial television will be required to be paid by holders of television sets in Scotland and other areas not serviced by commercial television,

The television licence fee is being increased from £2 to £3, not "for the service of commercial television" as the hon. Lady suggests, but in order to meet the development needs of the B.B.C. The new fee will be payable in all cases.

I can quite understand that it is to meet the development charges, but surely a concession should be made to the areas which are not to see these programmes. Would it not be possible to postpone the charge until nearer the day when the people in those areas will be able to see the programmes, or is the position that the programmes are of such low quality that the hon. Gentleman probably thinks it worth a pound for the privilege of not seeing them?

Whether the programmes will be worth looking at or not is one of those matters about which we must wait and see, but the hon. Lady will appreciate that the extra pound is not put on for the benefit of competitive television. If, in any particular area where there is no commercial television, there were a reduction, it would only be 3s.

Is my hon. Friend aware that private enterprise was willing to put on commercial television free of charge to the public, and that any extra cost which falls upon the licence holders is at the behest of the opponents of commercial television?

I think that my hon. and gallant Friend had better make his speech next week during the debate.

Is the Assistant Postmaster-General aware that he is misleading the House by failing to reveal, as part of his answer, that a considerable sum of money is going as a subsidy to bolster up commercial television; and he must be aware that it is part of the distrust which he and other people feel in letting the commercialisers move into this field?

I will reply to the hon. Member in the same terms as I replied to my hon. and gallant Friend the Member for Down, South (Captain Orr), that he had better wait till next week to make that speech.

Is it not the case that a recommendation was received from the B.B.C. that there should be a fee of £3, and that the £3 is required for the development of the B.B.C. and has nothing at all to do with commercial television?

In view of the announcement by the hon. Gentleman that we are to have a debate next week—which is a most unusual answer, I must say—will he also remember that he informed the House a fortnight ago that more than £750,000 out of this £1 increase was going to commercial television?

Perhaps I should amend what I said, and say that we shall have a debate in the near future.

Television Programme Contractors (Applications)

28.

asked the Assistant Postmaster-General how many applications he has received to act as television programme contractors; and what is the policy of his Department in regard to applications from interests which also propose to advertise on television.

As I informed the hon. Member for Islington, East (Mr. E. Fletcher) on 27th January, we have invited prospective applicants to hold preliminary talks, and we have so far met 42 of them. With regard to the second part of the Question, I would ask the hon. Member to await the debate on Second Reading of the Bill.

Will the Minister make it clear in that debate that the same individuals may not both advertise on television and produce television programmes?

Can the hon. Gentleman tell us how many of these 42 applicants are disqualified persons under the terms of the new Bill?

Grimsby Area (Reception)

asked the Assistant Postmaster-General what complaints he has recently received regarding the reception of radio and television programmes in the Grimsby area; and what action he is taking to improve the service.

The only such complaint is one sent to me last month by the right hon. Member himself. As I have already informed him, the B.B.C. say that, provided there is no severe local interference and good outdoor aerials are used, reception of both sound and television programmes in the Grimsby area should be generally satisfactory. I should, however, be glad to make further inquiry if the right hon. Member has other specific cases in mind.

Is the hon. Gentleman aware that technical opinion in the area still maintains that the Home Service is very unsatisfactory after dark, and also that there is interference on the part of T.V. with the Light Programme? Will he see that his engineers get into touch with the association of engineers in the area who are making these complaints?

I thought we were in touch some little time ago and that as a result there had been an improvement. But if the right hon. Gentleman assures me that that is not so, I will have a look at the matter again.

Transmitter, Truleigh Hill (Future Use)

39.

asked the Assistant Postmaster-General whether he will ensure that the television booster at Truleigh Hill is retained after the Isle of Wight transmitter is opened, so that the television booster will be able, if necessary, to relay an alternative television programme.

We understand that the B.B.C. will require this transmitter for service elsewhere, to extend the coverage of its first television programme.

Will my hon. Friend, who has done so much to improve reception in Brighton and district, tell the House what arrangements he will make to ensure that viewers on the South Coast will obtain a good reception of commercial television programmes from London, as envisaged by the Television Bill?

I am informed that when the right stations are ready there should be a satisfactory reception.

B.B.C. (Television Cost)

asked the Assistant Postmaster-General the estimated total cost, including capital and revenue expenditure of the British Broadcasting Corporation's single programme television service for the present financial year, and for the financial years ending March, 1955, and March. 1956, respectively.

For the present financial year the estimated cost is about £3½ million revenue expenditure and £1½ million capital expenditure.

As explained in my reply of 9th December last to my hon. Friends the Members for Harrow, East (Mr. Ian Harvey) and Shipley (Mr. Hirst), it is not the practice to give forecasts for B.B.C. expenditure.

Will my hon. Friend not agree that these figures tend to show that it would be quite impossible to provide an alternative service for the £3 licence fee, which, after all, was a proposal raised by the B.B.C. itself?

The B.B.C. never said that it could put on a second programme now. What I adhere to is that it would be impossible for the B.B.C, with a £3 licence, to provide a second programme at this stage.

Will the hon. Gentleman bear in mind that the B.B.C. might take advantage of capital expenditure out of loan to provide additional services, and that V.H.F. to the West Country is badly needed?

One of the difficulties is that an enormous percentage of expenditure by the B.B.C. is not on capital but on programmes.

B.B.C. (Revenue)

asked the Assistant Postmaster-General what estimated sum of money would have been diverted from broadcasting licence revenue to the Treasury in the next three financial years if the Treasury percentage had remained at the 15 fixed by the previous Government.

If the contribution to the Exchequer had remained at 15 per cent, of the net licence revenue (i.e. after deduction of 7½ per cent, to cover Post Office costs), I estimate that the Exchequer would have received £9·4 million in the next three financial years. As it is, the Exchequer will receive £6 million net.

Does not this figure make nonsense of the Opposition case that the money has been taken from what would have gone to the B.B.C, and is it not a fact that £1½ million would have gone to the Treasury if it had not been diverted to the competitive service?

If the licence holder does not pay this money, the general taxpayer does, and why should the general taxpayer subsidise commercial television?

The money comes out of licence revenue and, as such, goes to the Treasury. The Treasury distributes it as it thinks fit.

Is it not true that of this £3 million saved, £2 million will be lent to the commercial company?

asked the Assistant Postmaster-General the total sum of money, capital and revenue, spent on the British Broadcasting Corporation's single programme television service since its inception in 1936; and how much of this has come from television licence revenue and how much from sound licences.

There was no extra charge for television until 1946 and separate accounts were not kept until the post-war period. From 1st January, 1947, until 31st March, 1953, expenditure on television was approximately £14 million, and the net additional payments made to the B.B.C. directly attributable to the extra £1 charged per combined sound and television licence has amounted to £4 million. I cannot say how much of the difference was met from the revenue attributable to sound licences and how much from other sources.

Post Office

Telegrams

asked the Assistant Postmaster-General the number of telegrams handled by the Post Office in 1935, 1945 and 1953.

For the financial years 1935–36, 1945–46 and 1952–53 the numbers of inland and overseas telegrams were 52·2 million, 74·2 million and 58·2 million respectively.

May I ask my hon. Friend if he thinks that if he makes an increased charge for telegrams there is likely to be an increase or a decrease in numbers?

asked the Assistant Postmaster-General the number of telegram messengers employed by his Department in 1935, 1945 and 1953.

In 1935–36 about 5,500 and in 1952–53 5,439. Figures for 1945 are not available.

May I ask my hon. Friend if some of the losses sustained on telegrams may not have been brought about by this increased number of messengers employed?

asked the Assistant Post master-General whether he will examine the possibility of charging a cheaper rate for telegrams sent to or from hospitals, in cases where the subject matter concerns the health and condition of patients.

Telegrams sent to hospitals about the condition of patients are not essentially different from telegrams about illness sent elsewhere, and there is no reason why they should be treated differently. As for telegrams sent by hospitals, any attempt to subsidise particular messages would be almost impossible to administer.

Will my hon. Friend look at this matter again? Would it not be easy to identify telegrams sent to and from hospitals? Secondly, are there not strong humanitarian reasons for doing this?

I should like to feel that we could do it, but it would certainly lead to abuse and it would be quite impossible administratively to operate.

asked the Assistant Post master-General if he will examine the possibility of charging a cheaper rate for telegrams containing only messages about persons' illnesses; and if he will make a statement.

I regret that it would be quite impracticable to operate a system under which the charge for a telegram depended on the accepting officer's assessment of the nature of the text.

Is not this done already in the case of greetings telegrams? Are not greetings telegrams identified by the officer in a similar way? Are there not equally strong humanitarian grounds for differentiating these telegrams?

There are not humanitarian grounds in the case of greetings telegrams, for the sender himself says that he wants to send a greetings telegram.

Will the hon. Gentleman inform his hon. Friend that greetings telegrams cost more, not less, than those sent under the ordinary service?

15 and 16.

asked the Assistant Postmaster-General (1) what estimate has been made of the additional cost which will fall on the wholesale fish industry by the proposed increase in the cost of telegrams; and whether he is aware of the fact that the increased cost will be passed on to the consumer by increasing the price of fish in the shops; and what action he is taking;

(2) whether he is aware that the 1951 General Post Office census of telegrams revealed that 5·4 per cent, of all telegrams sent in that year were either to or from merchants connected with the fishing industry; and what estimate he has of the total cost of all these telegrams.

asked the Assistant Postmaster-General (1) how many telegrams, on average, are despatched and received daily in respect of the merchandising and distribution of fish from the principal fishing ports; what special rates are available to dealers; and whether, in view of the importance of a cheap telegraph service to the fishing industry, he will reconsider his decision to raise the costs of telegrams;

(2) if he is aware of the essential needs for an effective and cheap telegraph service in the merchandising and distribution of fish; and if he will estimate the increased costs to the consumer in consequence of the proposed increase in telegraph charges.

asked the Assistant Postmaster-General whether he is aware that the fishing industry is the largest industrial user of the telegram service; that the proposed increased charges will add £200,000 a year to the cost of fish distribution; and whether he will grant special relief to industrial users of the service.

asked the Assistant Postmaster-General to give an estimate of the average increase in the price of fish which will result to the consumer from the proposed increased charges for telegrams.

I am aware that the fish industry is the largest single user of the telegraph service, sending about 6,000 telegrams a day, and I estimate that the increased cost to the industry as a whole will be between £150,000 and £200,000 a year. Spread over the whole industry, the increase will amount to only one-fiftieth of a penny per pound of fish. No special rates are available for fish distributors, and my noble Friend would not be justified in giving a special subsidy to this industry at the expense of other users of Post Office services.

Is the Assistant Postmaster-General aware that, in view of the ever-increasing costs, the Trawler Owners' Association consider the imposition of a doubling of telegram costs, which will amount to £200,000 a year, will compel them to increase the price of fish to housewives? How does he square that with the repeated claim of the Government that they are not doing anything to increase the cost of living?

I shall be very surprised if an increase in the wholesale price of fish of one-fiftieth of a penny a pound will cause fishmongers to increase the retail price.

Is my hon. Friend aware that the British Trawler Owners' Association do not pay the telegram costs, and that those costs are paid by the wholesalers?

Is the hon. Gentleman aware that the figure of one-fiftieth of a penny a pound increase in the cost to the merchants gives an entirely erroneous picture because costs are concentrated in a few ports, and this increase of £200,000 a year in distributing charges is bound to be passed on to the consumer? Will he have a look at this matter again? Will he answer the part of my Question concerned with that aspect, so that we may see whether preferential treatment can be given in order to help housewives?

I should like to help the trawler owners or anyone else, but I could only do it by calling on other Post Office users to pay more for other services than they are having to pay now.

Would my hon. Friend convey to certain other Ministers that they could help him in his dilemma if they would see to it that the White Fish Authority did its job a little more effectively and helped the fishing industry, so that the cost of telegraph charges would not fall so heavily on the industry? We should be obliged to him if he would make those representations.

In order to prevent this grossly excessive overcharging from inhibiting and frustrating business altogether, could not the Minister devise some special selective scheme which would apply to certain essential as distinct from non-essential industries?

I must remind the House that even with the increased charges, the fishmongers will still be getting a subsidy of 1s. 6d. on every telegram they send.

asked the Assistant Postmaster-General if he will consider allowing reply-paid telegrams to be sent at the present charge, on the operation of the increased charge for telegrams.

No, Sir. Reply-paid telegrams cost the same to handle as ordinary telegrams.

Does the Minister appreciate that in the case of poor people who may have to send a reply-paid telegram to a daughter or other relative far away it means 6s. out of their pocket? Does not he think that that is an altogether disproportionate extra imposition?

I know that the increases in telegram charges are unwelcome, but we shall have an opportunity of discussing them when we debate the Bill which I have presented to the House, and perhaps the point mentioned by the hon. Member can be raised then.

asked the Assistant Postmaster-General if he will consider reducing charges for telegrams which the sender intimates can be delivered by postmen on their normal rounds.

I think the hon. Member's point is largely met by the proposed overnight service in which messages will be accepted at any time up to 10 p.m. for delivery early the next morning. These messages, which will normally be sent out with the postal delivery, will be charged for at half the standard rate.

Do I understand that this is a concession and it means that under some circumstances telegrams can be sent at the old, or at least at a lower, charge than is anticipated? Does not the hon. Gentleman realise that if there is an intimation that a telegram could be delivered by the postman, that would obviate the charge arising from employing messengers?

That is so under the night telegram service which I announced in the House a short time ago.

asked the Assistant Postmaster-General how many telegrams are handled weekly by the Grimsby Post Office; what proportion of these concern the fish trade.

About 15,300 telegrams a week are handled by the Grimsby Post Office, of which some 80 per cent, concern the fish trade.

Do not the figures indicate that the burden of this increase will be exceptionally heavy upon the fish trade, which is very much concentrated in the port of Grimsby. Could the hon. Member consider some concession for a limited time during the day because the traffic relating to fish is confined to a limited number of hours?

I shall be delighted to consider any possible scheme, but I must warn the right hon. Gentleman that I cannot possibly consider a scheme which will lose us any more money. He said that the fish trade was very largely concentrated on Grimsby, but I am told that there is more fish business in Hull than in Grimsby.

asked the Assistant Postmaster-General if he is aware of the burden that will be placed on the British fishing industry by the decision to double the cost of telegrams; and if he will meet a deputation from the industry to discuss the proposal.

I am aware that the fishing industry will be called upon to pay more towards the cost of the services it receives. I am always prepared to consider representations from anyone, but I can hold out no hope of being able to offer the fishing industry preferential treatment at the expense of other users of the Post Office.

asked the Assistant Postmaster-General if he is aware of the concern aroused in the fishing industry by the proposed increase in charges for telegrams; and what estimate he has of the number of business telegrams despatched annually by persons and firms engaged in that industry, expressed as a percentage of the total annual number of telegrams recorded.

Would my hon. Friend be prepared to consider, in connection with this vexed question, an extension of the hours for night telegrams?

I shall be prepared to consider anything, but it must not lose us more money.

Advisory Council Minutes (Circulation)

asked the Assistant Postmaster-General to whom copies of the minutes of the Post Office Advisory Council are supplied, apart from members of the council itself.

Apart from members of the council, circulation is confined to senior officials of the Department.

In that case, can my hon. Friend say how it was that the right hon. Member for Caerphilly (Mr. Ness Edwards) was able to say, when the increases in telegram charges were announced, that he had a copy? Is the House to assume that he got it by irregular means?

No, the right hon. Member could not have had a copy because at that time the minutes had not been printed.

Will the hon. Gentleman make it clear to his hon. Friend the Member for Cheadle (Mr. Shepherd) that the Post Office Advisory Council is not some secret organisation, that the hon. Gentleman has always carried on the tradition of letting his predecessors know exactly what is happening, and that in fact a copy of the announcement which was to be made was discussed informally between his chief and myself that morning?

Yes, but what my hon. Friend referred to was a copy of the minutes of this particular meeting.

Facilities, Swanscombe

asked the Assistant Postmaster-General whether he will give an estimate of the upper and lower limits in the capital cost involved in opening a sub-post office in an existing shop, where the shopkeeper is willing and anxious to run the services associated with a sub-office, and of the annual cost involved in keeping such an office open; and whether he will take steps to open such a sub-office in some shop in Galley Hill, Swanscombe, as near as possible to the site of the sub-office which was recently closed.

Sub-post offices are provided and maintained by private shopkeepers on an agency basis, and the details asked for by the hon. Member are not available to me.

It is hoped to start building a new Crown post office, on a site nearly opposite the former Galley Hill sub-office, towards the end of this year.

As it will be some considerable time before the Crown office is opened, will the Assistant Postmaster-General arrange for someone in his Department to meet the local council and other citizens to discuss the very serious difficulties and inconveniences which will arise for another couple of years as a result of the present situation?

I shall be delighted to do that, and perhaps the hon. Member will get in touch with me. The difficulty is whether we could persuade anyone to take on the job of sub-postmaster for two years when he knows that at the end of that time the Crown post office will take his place.

Postal Deliveries, Invershin

asked the Assistant Postmaster-General if he is aware that prior to the war, two postal deliveries per day were made in Invershin, Sutherland; that to economise in manpower, during the war, the service was reduced to one delivery per day; that the local postal authorities refused to reinstate the pre-war service, in spite of the fact that the population is increasing, that agricultural production has increased by 50 per cent, and that the tourist trade is also running at a much higher figure than in 1939; and if he will remedy this matter.

I am looking into this matter and will write to my hon. Friend as soon as possible.

Will my hon. Friend bear in mind that important mail, which arrives in the post office in Invershin at nine o'clock in the morning lies there, and that delivery of it does not commence until the afternoon, and is that not a wrongful situation for any postal service in Great Britain?

Yes. I have promised to look into this matter and I will let my hon. Friend know as soon as possible.

Why does the hon. Gentleman allow any facilities in that area, since they cannot be economical and he cannot be making a profit?

Telegraph Service (Capital Expenditure)

asked the Assistant Postmaster-General what capital sum was expended last year, and what it is intended to expend this year, in installing new telegraphic apparatus.

Figures for calendar years are not available, but in 1952–53 the capital expenditure on telegraphs was about £1½ million, and in 1953–54 will be about the same. About one-third of this total is for plant for the public inland telegraph service, installed to reduce staff costs.

Is it the case that a considerable amount of new apparatus was installed in the telegraph system last year and, if that is the case, is it wise now to increase charges so much that the number of telegrams must inevitably fall greatly and, as a result, a great deal of this apparatus will not be fully used?

The hon. Gentleman has put his finger on one of our chief difficulties—to what extent to put more capital into a service which is actually dying, since the number of telegrams sent becomes less and less.

Telephone Service

Aberdeen

asked the Assistant Postmaster-General how many applicants are now waiting for telephones in the city of Aberdeen; at what rate the arrears are being overtaken; when he expects that the 200 applicants who, on 23rd July last, were awaiting telephones, will be supplied; how many new applications have been received since that day; and what is preventing his Department from wiping out the arrears completely.

Over 1,500 lines have been connected in Aberdeen during the past eight months, including the 200 mentioned by the hon. and learned Member. Although 1,120 new applications were received during this period the number outstanding has fallen to 735, excluding 267 under survey or in course of being met. A further substantial reduction in the waiting list must await the provision of additional local cables.

Does that mean that the Minister is overtaking the arrears or is the Department getting more into arrears? What is the hon. Gentleman's hope of wiping out the arrears altogether?

I certainly hope that we shall wipe out the arrears altogether. In fact we are doing so now. The position today is very much better than it was when the hon. and learned Member asked his last Question about it.

Gateshead

asked the Assistant Postmaster-General the number of telephones which were installed in Gateshead, County Durham, in 1953; and what number of applications still remain to be considered.

Three hundred and ninety-four telephones were installed in 1953; 84 applications are outstanding, excluding 118 in the course of being met or under inquiry.

Will the Minister agree that this question implies that the county borough of Gateshead is in County Durham? Is he aware that the B.B.C., in its request programme on 27th February, said that Gateshead was in the City of Newcastle? Will he take steps to correct that?

I am pleased to be able to tell the House that I am not responsible for the programmes of the B.B.C.

Is the hon. Gentleman aware that it is a great honour to be in the great county borough of Newcastle and that this slight slip of the B.B.C. gave great pleasure to many people in Gateshead and elsewhere?

Audenshaw, Denton and Droylsden

asked the Assistant Postmaster-General how many applications for telephones are outstanding in the Audenshaw, Denton and Droylsden areas of Lancashire; what progress has been made during the past 12 months towards meeting the requirements; and what progress may be expected during the next year.

Four hundred and ninety-eight applications are outstanding in the Audenshaw, Denton and Droylsden urban district areas. Two hundred and fifty-six were met last year, and I am hopeful that this rate of connection will continue.

Is the Minister aware that at this rate he will never cover the arrears? Cannot he do something better, having regard to the information that I have been bringing to his notice since March 1953? He does not seem to be doing anything at all in the matter.

I would not agree with that statement. There has been a decrease of no fewer than 371 in the numbers on the waiting list in the past 12 months.

Trunk Calls

asked the Assistant Postmaster-General (1) by what method his Department ascertains the average time it takes for a subscriber wishing to make a trunk call to get an answer from the operator at the exchange through which the call is to be made;

(2) the longest time taken into consideration in ascertaining that the average time taken for a subscriber on the Chester telephone exchange to get an answer from the operator in order to make a trunk call was five-and-a-half seconds.

Times to answer are obtained by stop-watch timing of substantial numbers of calls by specially trained staff. Of nearly 4,000 calls timed by stop-watch at Chester over a recent period of three months, 90 per cent, were answered within 10 seconds, more than 98 per cent, were answered in less than half a minute and the longest time to answer was 155 seconds.

May I ask my hon. Friend how the time which frequently elapses between the subscriber dialling and the operator answering is taken into consideration when, in fact, the operator says that the call has only just come through? As to the second Question, may I ask if he is aware that that figure is quite inaccurate as regards the Chester exchange, because often a period of more than five minutes elapses before the operator answers?

I have given the figures as fixed by the test which we made over a period of three months. If my hon. Friend has a particular case in mind which he thinks took so long, I shall be delighted to look into it.

Will the hon. Gentleman compare the reply which he has given today with the reply which he gave last week, when he said that this was done by meter? Secondly, does he recall the question about not giving notice to the supervisor whenever exchange test calls were to be made.

We have fitted meters in some exchanges but I was wrong if I suggested that there was one at Chester. I did not follow the second part of the hon. Gentleman's question.

I asked if checks ought to be made independently without supervisors knowing that they are to be made.

Farmers, Scotland (Rental)

asked the Assistant Postmaster-General how many farmers in Scotland pay at the business rate for telephones installed in their homes; how many pay at the private rate; and who determines when the business element is substantial and predominates.

The information asked for in the first part of the Question is not readily available, and to get it would require a disproportionate amount of time and labour. Where the telephone is not used solely for residential or business purposes the rental is determined by the local telephone manager.

Could my hon. Friend not find out how many farmers have business telephones installed? Would it not be right to assume that practically none have, because that would be discrimination against farmers, which is what prompted this Question?

I can assure my hon. Friend that there is no question of discriminating against anybody, but if I were to get the figures—and I could get them— it would mean going through the list of farmers' telephones for the whole of the United Kingdom.

Has it not been pointed out already by my hon. Friend the Member for Wednesbury (Mr. S. N. Evans) that farmers are already subsidised and feather-bedded?

Is it not a fact that the farmer, like all other people in business, must use his private telephone to some extent for business reasons, and is it not pettifogging and pitiful to suggest that any fanner should have a business rate of rental imposed on him for a telephone in his own house?

It all depends on the size of the undertaking, and this power of discretion which has been exercised by telephone managers has never been challenged, so far as I am aware.

Grimsby

36.

asked the Assistant Postmaster-General what steps he is taking to ensure that telephone facilities in Grimsby will be capable of handling the additional traffic which will be diverted to the telephone system following an increase in the cost of telegrams.

A considerable extension of equipment and lines at Grimsby exchange is now in progress and should be completed within the next two or three months.

Is the hon. Gentleman aware that if these increases are brought into force the merchants will inevitably have to switch a lot of their business to the telephone, and that there is a great deal of difficulty in obtaining telephone facilities on the dockside? Will the hon. Gentleman undertake to consider a priority for facilities at the docks where they are required?

Application, Caithness

41.

asked the Assistant Postmaster-General if he is aware that a telephone has been denied to the secretary of the women's rural institutes in Caithness since 1952, on the grounds that some external wiring would be required from the local guest house to the schoolhouse in Watten, and as some external wiring must be required with all telephones, why this particular application has been discriminated against in spite of its importance to a remotely situated rural community.

As I have explained to my hon. Friend in correspondence, it has not hitherto been possible to supply a telephone in this case because of the claims of prior applicants. I am inquiring into the present position and will write to my hon. Friend.

Will my hon. Friend begin to give some of the good services he has been giving to Brighton to the Highland area, where they are much more required than is television in Brighton? Does he realise that women's rural institutes in a remotely situated area such as mine are most valuable institutions, and that it is wrong that this lady, who is the honorary secretary, should be deprived of a telephone to carry on this important social service?

I would not like to answer that question until I have had a chance to look into the matter, but as I have said, I will let my hon. Friend know.

Rugby

47.

asked the Assistant Postmaster-General when he expects the 324 applications for new telephones now outstanding in Rugby will be satisfied; and the difficulties which hinder him doing this.

About half of these applications will be dealt with during the next six months; in the remainder the main difficulty is shortage of cables, but I am looking into the position and will write to the hon. Member.

Will the Minister take it from me that many of my constituents are getting impatient about this matter, despite the good news he has given me, including town councillors, members of national executives of trade unions, and the like, and can he give an assurance that he will satisfy their claims in the near future?

I cannot give a categorical assurance, but I will reassure the hon. Gentleman by reminding him that the waiting list has gone down by nearly 100 in the past 12 months.

Royal Air Force

"Air Power" (Advisory Committee)

48.

asked the Under-Secretary of State for Air what assistance is afforded by his Department in compiling the publication "Air Power."

"Air Power" is a commercial publication, and the articles in it express the personal views of their authors. An Air Ministry advisory committee exists, however, to give the editor any advice for which he asks.

In view of the fact that the Air Ministry assists in giving advice, would my hon. Friend keep a watch on this publication, because it has been represented to me that certain of the articles in recent issues are of a contentious nature and calculated to foment ill-feeling between the Services?

As I understand it, the policy of the editor of this periodical is to throw open his pages to constructive debate on important matters of air policy, even if they are controversial.

Will the hon. Gentleman continue to give all the support he can to this publication and in no way inhibit freedom of expression?

Will my hon. Friend say whether he considers it is desirable for senior officers of one Service to slang the senior officers of another Service, with the assistance of his Ministry?

Will not the Government find it exceedingly and continuously difficult to restrain this sort of thing unless they conduct a high level Ministerial inquiry into the whole relationship between the Royal Navy and the Royal Air Force?

I suppose that my hon. and gallant Friend is referring to an article written by Sir John Slessor which expressed the author's personal views, and was written in reply to an essay on maritime air power by a naval officer which drew very different conclusions.

Jet Aircraft (Low Flying)

asked the Under-Secretary of State for Air whether he is aware that the low flying of jet aircraft over populated districts is not only a menace to public safety, but is also injurious to the health of young children, expectant mothers, invalids and aged persons; and what action he proposes to take to prohibit such low flying.

Aircraft are normally forbidden to fly low over built-up areas. From time to time, however, special air defence exercises take place, in the course of which some flying over built-up areas is unavoidable if realism is to be maintained. Such exercises are a vital part of the training of our fighter defences against enemy attacks, which might be made at any level. Advance notice of all low-flying exercises is given to the police and the local Press.

Is my hon. Friend aware that the complaints that I have received are not of flying exercises but of single, solitary low-flying jet aircraft, usually on Sunday afternoons, frightening the lives out of people and causing damage to property? Is he aware that the general public do not accept that as being a necessity? Will he look into the matter and see whether he can stop this practice?

Queen's Regulations prohibit flying at an altitude below 2,000 feet unless expressly authorised, and disciplinary action would be taken against any pilot who deliberately broke these Regulations. If my hon. Friend could give me any details of any such case, I should be willing to look into the matter.

Dilutee Tradesmen

asked the Under-Secretary of State for Air why some employees registered as dilutees in Air Ministry engineering establishments are treated more favourably than others with similar trade credentials when they apply for removal from the dilutee register.

These cases are considered by local joint committees, consisting of representatives of the Air Ministry and the Amalgamated Engineering Union. Some variations of practice between different local committees are probably unavoidable, but I am not aware that any local committee has given different treatment to two men whose industrial histories are the same.

Is my hon. Friend aware that so many cases of discrimination where submitted to his Department by the Aeronautical Engineers' Association that his Department declined to receive any more? May I draw his attention not to two men but to one man who so long as he was a member of the Association was refused registration but was given it when he became a member of the Amalgamated Engineering Union?

Is not this question of dilutees solely a matter between the Amalgamated Engineering Union and the Air Ministry?

51.

asked the Under-Secretary of State for Air what steps are taken by his Department when registering employees as dilutee tradesmen to ensure that they do not in fact possess the requisite trade credentials to entitle them to be recognised as craftsmen; how far they are consulted at the time of registration; and what means of appeal to an impartial body they have against registration as dilutees.

A local joint committee, consisting of representatives of the Air Ministry and the Amalgamated Engineering Union, considers an employee's industrial history before deciding whether he should be registered as a dilutee and employed on craftsman's work. If the Committee needs further information the man is asked to supply it through either the Departmental or the union representative.

This procedure is laid down in the Relaxation of Customs Agreement between the Air Ministry and the union; the application of the agreement is a matter for the two parties to it, and there is no provision for matters arising out of it to be referred to a third party.

In view of the case of Mr. Weeden, employed at No. 8 Maintenance Unit, Little Rissington, to which I have referred, is my hon. Friend satisfied that this arrangement is really working fairly? Is he aware that his Department has put it in writing that unless the Amalgamated Engineering Union agrees to a man being recognised as a craftsman his Department will not agree to registration? Does he think that that is a fair procedure?

Yes, Sir. The matter is considered first of all by the local joint committee, and if necessary it is referred to the central committee. I think that that is a fair procedure.

Is it not a fact that this agreement dates back to 1939, when it was made to assist the war effort, that it rendered great assistance to that effort and that ever since the agreement was entered into the Amalgamated Engineering Union has faithfully observed its terms?

In view of the unsatisfactory nature of the reply, I beg to give notice that I shall raise this matter again.

Trooping Contracts

52.

asked the Under-Secretary of State for Air if the two British air corporations were invited to submit tenders for the transport of Regular troops from the Canal Zone and East Africa under the new schemes announced recently.

No tenders have been called for specifically to meet the additional traffic under these schemes, which can probably be carried under our long-term trooping contracts, both existing and to be let. If ad hoc charter is needed at any time the corporations will be invited to tender.

Whilst ignoring the issue of the so-called ad hoc charter contracts, and in view of the fact that long-term contracts come to an end this year or the beginning of next year, may I ask the Minister whether the corporations will be permitted to tender?

As three or four years ago the Minister's Department and the War Office and their senior officials insisted that private operators be allowed to tender, on the ground that unless private operators tendered against the corporations the Air Ministry would not be able to obtain a contract at the lowest possible price, why has the Ministry given up the idea of getting the lowest possible price by giving up competition in tendering between private operators and the corporations?

I understand that the corporations have given an undertaking not to keep aircraft specially for charter work.

Is it not most undesirable that this most important public service, which should be greatly extended, should be confined to those who make a private profit out of it?

Airborne Search Radar

54.

asked the Minister of Transport and Civil Aviation if he is aware of the risk to passengers travelling by air caused by the absence from aircraft of any search radar navigational aid which will show immovable, as distinct from movable, objects in the aircraft's path; that fatal accidents and aeroplane wrecks have been caused by the absence from aeroplanes of such navigational aids; and what steps he is taking to make the use of such aids compulsory in all British passenger aircraft.

The Joint Parliamentary Secretary to the Ministry of Transport and Civil Aviation
(Mr. John Profumo)

I am aware that in recent years there have been a number of accidents to aircraft which have crashed on high ground. This type of disaster can best be avoided by the exercise of a high standard of airmanship and accurate navigation at all times. Trials of airborne search radar are continuing, but the information at present available does not justify making its carriage compulsory in British passenger aircraft.

Does the Minister agree that there is radar of the type indicated in the Question, and does he not agree that the present cost in human life and in public apprehension would make it worth while to install this type of radar in these aircraft?

There is such apparatus in existence, and the hon. and learned Member will be pleased to note that B.O.A.C. is proposing to make experiments in the Comet II within about six months. As a result of a report on those experiments, the corporation will be able to make up its mind whether it will be possible to fit this apparatus into ordinary passenger aircraft.

Were there not effective instruments of this kind already installed in Royal Air Force transport planes in 1947, and is it not time that they were installed in British civil aircraft as well?

We must not oversimplify this problem. As the right hon. Gentleman knows so well from his great experience, this is a very complicated mechanism and it requires the radar screen to be watched the whole time. These experiments will take place, and all the information that we receive from the Royal Air Force will be taken into consideration.

I hereby beg to give notice that I shall raise this matter again on the Adjournment.

Transport

Fares, Scotland (Representations)

55.

asked the Minister of Transport and Civil Aviation what representations he has had from the Scottish Counties of Cities Association regarding fares of municipal road-passenger undertakings; and what reply he has made.

The association originally suggested that the fares on all forms of passenger road transport services operated by local authorities should be free from any control except that directly imposed by Parliament in Private Acts, but a deputation from the association which came to see me recently put forward modified proposals which I have promised to consider.

Consultative Committees (Annual Cost)

59.

asked the Minister of Transport and Civil Aviation the average annual cost of the consultative committees set up under the Transport Act, 1947.

As all the area committees were not set up and in operation until 1951, figures of costs before that year would be misleading. The average for the years 1951 and 1952 was £11,511.

Does that include the Central Consultative Committee, and, if not, can my right hon. Friend give me a figure for it?

It certainly includes the Central Consultative Committee, but it also includes the area committees, which I consider are playing a very useful part.

If the committees are playing a very useful part as the right hon. Gentleman suggests, why does he not take their advice?

Both for them and for me, it is a useful guide to follow the Acts under which we both operate.

Road Improvements, Fife

58.

asked the Minister of Transport and Civil Aviation how much has been spent on road improvements in Fife in each of the last three years; the estimated expenditure for next year; and what fraction this represents of the total amount spent in Scotland in each of the last four years.

The Joint Parliamentary Secretary to the Ministry of Transport and Civil Aviation
(Mr. Hugh Molson)

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

Can the Minister indicate whether the figures for the current year and for next year adequately reflect the increasing importance of this developing mining area? Is he aware that transport into and out of and inside the area is most inadequate, and that if there is not a substantial increase in allocation next year Fife County Council and local authorities in the area will be most distressed?

It is not yet possible to arrive at reliable figures for next year. Expenditure in Fife this year has been 5·2 per cent, of the expenditure in Scotland, and that appears to be a fair allocation in view of the fact that the total mileage of trunk and classified roads in Fife is between 3 per cent, and 4 per cent, of the mileage in Scotland.

The table below shows the figures of payments from the Road Fund for the major improvement and new construction of trunk and classified roads for the years indicated. Any estimate of payments for 1954–55 would be subject to a wide margin of error because of the difficulty of forecasting the exact progress of each scheme, particularly for schemes which are the responsibility of a local highway authority.

British Honduras (Constitution)

The following Question stood upon the Order Paper:

To ask the Secretary of State for the Colonies if he will make a statement on the new constitution for British Honduras.

On a point of order. After Question time last Thursday, there was some discussion in the House in an endeavour to secure a statement about British Honduras. As we were unable to get a firm statement about the matter, I put a Question upon the Order Paper for the purposes of securing a statement. I was wondering, Mr. Speaker, whether the Minister might seek your permission to answer my Question so that the matter might receive attention and hon. Members thus have some information apart from what they have derived from the Press.

I have received no such request from the Minister. It would be out of order to allow it.

Further to the point of order. You may remember, Mr. Speaker, that during the exchanges as to whether or not a Motion to adjourn the House on that occasion would be in order, the Under-Secretary of State for Commonwealth Relations volunteered a certain statement, namely, that the Constitution had not been suspended. That was a statement which took everybody by surprise, including the Leader of the House and the Leader of the Opposition; in fact, everybody who was engaged in the matter. Upon inquiry, it turns out to have been a very misleading statement indeed. Is it not right that the opportunity ought to be taken to correct the information?

That cannot be done now. The Minister is entitled to make a statement, if he so desires, on a matter of public policy, but I have received no such request from him.

Further to that point of order. While I accept your Ruling, Mr. Speaker, as we are bound to do, do you not think that hon. Members are at a disadvantage. If you, in your discretion, properly refuse to accept either a Notice of Motion or a Private Notice Question on a certain topic, an hon. Member must put a Question on the Order Paper, but if Question time is fully occupied and the Question is not reached, the hon. Member is again at a disadvantage. Ought not the Minister, in order to serve the House, which Ministers are expected to do, to intimate his desire to meet the wishes of the hon. Member by answering the Question?

The Question cannot be answered now, but I have no doubt that what has been said has been heard and that the desirability of making a statement or otherwise will be considered by those who are responsible for making it. I am concerned only with the point of order.

Ballot for Notices of Motions

Colonial and Commonwealth Relations Offices

I beg to give notice that, on Friday 2nd April, I shall call attention to the need to redefine the functions of the Colonial and Commonwealth Relations Offices; and move a Resolution.

Flow of Traffic

I beg to give notice that, on Friday, 2nd April, I shall call attention to the need to improve the flow of traffic and, in particular, to the more efficient working of traffic lights; and move a Resolution.

Nationalised Industries

I beg to give notice that, on Friday, 2nd April, I shall call attention to the working of the nationalised industries; and move a Resolution.

Orders of the Day

Atomic Energy Authority [Money]

Resolution reported,

That, for the purposes of any Act of the present Session to provide for the setting up of an Atomic Energy Authority for the United Kingdom and for other purposes, it is expedient to authorise—

Resolution agreed to.

Atomic Energy Authority Bill

Considered in Committee.

[Sir CHARLES MACANDREW in the Chair]

Clause 1.—(THE UNITED KINGDOM ATOMIC ENERGY AUTHORITY.)

3.37 p.m.

I beg to move, in page 1, line 10, to leave out "six," and to insert "seven."

I hope that the Minister will be able to accept the Amendment. I also hope that he will take the opportunity of telling us something about the Authority, its shape and size, and if possible, something about the relationship which he envisages will exist between the Authority and the Minister, who is ultimately made responsible for the atomic energy industry.

We have heard very little so far of the thinking of the Minister or of the Lord President or of Lord Cherwell, or whoever it is who is supposed to be doing the thinking about this matter. It would be useful if we could be told something more about the proposed organisation. On Second Reading, the Lord Privy Seal told us something of the work of that very progressive institution, the Mount Vernon Hospital, and the fact that it now has a cobalt bomb.

The Minister of Works told us in very pleasing language that we are now proposing to sail over uncharted seas, and I noticed that in answer to a Question yesterday he varied the phraseology a little and said that we are now venturing into unexplored territory. However, we really have heard very little about the administrative structure of the industry, and I hope that we shall get some enlightenment today. Perhaps I might tell the Minister of Works, in view of the rather flowery language that he has used since he has had some responsibility for the industry, that if we could get some useful information we should gladly accept more prosaic language.

This small Amendment proposes to increase the minimum number of the members of the Authority from six to seven. We think that we shall need at least seven in order to get a proper balance on the Authority. Three people have already been appointed, and they are excellent men who, we have all readily said, deserve the gratitude of the country, although, at the same time, we may well doubt whether their outstanding and special abilities are best employed in the general direction of the affairs of the industry. Three individuals have already been appointed of the six which, at the moment, is intended to be the minimum number.

According to this Bill, another member must be a person who has

The financial control which this Authority will exercise will be very considerable, and it will, to a large extent, be shrouded from the supervision of this House. Few people other than the members of the Authority will know where the money is actually being spent, and, therefore, I should have thought that more than one person having these excellent qualifications would be included on the Authority.

Again, accepting the Bill as it stands, that would bring the total of members to four already specified out of the total of six. We have an Amendment on the Order Paper, which I hope will be in order and also acceptable to the Government, and to which I hope to make reference later, which would make the total five out of the total envisaged minimum of six. That does not leave much room for the Minister to manoeuvre or to select other people having particular knowledge of and interest in not only the technical processes involved but all the social consequences.

Another reason why we think it is most important that we should have a broadly-based Authority is because, to a very large extent, we understand, it will exercise its power without the day-to-day control of the Minister. In this industry we are to have a form of remote control. The Lord President, the Minister of Supply, or whichever Minister is eventually placed in charge of the industry, will be exercising something of the same kind of remote control as I understand is now exercised by the operators of some of these atom ovens when dealing with uranium sludge. It is a very good reason why we should have a broadly-based Authority.

Later, we shall call attention to the possibility of having someone on the Authority with knowledge of and experience in the generation of electricity, which will be a most important future part of the function of this industry. Therefore, there seems to me to be a very strong case for an Authority having a minimum number which is greater than that which is at present laid down in the Bill, and we are proposing that that number shall be at least seven.

I can only hope that, as this is the opening Amendment, we shall be able to begin our proceedings in an amicable fashion by receiving the Minister's acquiescence, and an indication of his readiness not only to accept this Amendment but also to help us in some of our later discussions. I hope he will take the opportunity of telling us rather more about the size, shape and general purpose of this Authority, which the Bill proposes to set up.

3.45 p.m.

I hope the Minister will accede to the request of my hon. Friend the Member for Uxbridge (Mr. Beswick), and that we shall have some further details which have not been given us so far. My hon. Friend mentioned another Amendment on the Order Paper on which we shall discuss the need to have on the Authority people concerned with the generation of electricity, but there is also another Amendment which seeks to place on the Authority a person who has had wide experience in the organisation of workers. It would be improper for me to argue that point at this stage, but we feel that, for that reason alone, there should be another member of the Authority.

This Authority is to have tremendous power and influence, for good or evil, and it will play a very important part in the future in our general economy and in our whole social life. For that reason, we must be very careful with the composition of an Authority which has such tremendous power. I should have thought that it would be wise to try to extend the personnel so as to embrace wider fields of activity and experience in an organisation which not only has effective control over atomic energy production but over something which has a tremendous bearing on other fields of industrial activity. I therefore hope that the Minister will be forthcoming on this matter, and will give us a very full and frank statement.

I wish to support the Amendment moved by my hon. Friend the Member for Uxbridge (Mr. Beswick), and to make this additional point. There is a danger about this kind of Authority in that its composition is such that the experts—the functional members, those with actual responsibility in the organisation—are to dominate it. There is a case for broadening the personnel so that there will be rather more emphasis placed on the general public interest, so that we shall have men on the Authority who are able to sit back and see the true picture and not be too much attracted by the technical duties of the organisation or the glory of doing something within the organisation for the sake of that organisation itself.

We want more flexibility, and we have another Amendment on the Order Paper which seeks to make provision for the inclusion of someone who is an expert in the field in which I have a small interest—electricity supply—while there is also the question of the inclusion of someone who is expert in labour relations.

I should have thought the Minister would leave room for manœuvre so that he could pick and choose a little, and bring in those with that broader experience which the public interest deserves and to give a broader outlook to the Authority itself.

The Government agree entirely with the hon. Member for Workington (Mr. Peart), who said that we ought to be very careful about the composition of this Authority, which is a new kind of governing body, if I may use that expression, and it is extremely important that we should invite to the membership of that Authority the very best people for the job.

It is common form in nationalisation Acts that there should be a minimum and a maximum number, and there are obvious reasons for that. We do not want the body to be too small and, at the same time, we do not want it to be so large that it gets out of hand. The question is whether the minimum number of six and the maximum number of 10 are the right limits to have chosen, because both the hon. Member for Workington and the hon. Member for Cleveland (Mr. Palmer) said that they wanted the Lord President to have room for manœuvre; and room for manœuvre is provided by the difference between the minimum number and the maximum number.

As the position is known to us at present, four members of the board are already chosen, as it were—the three atomic experts and the member for administration. There are still six places that can be filled. It is open to the Lord President of the Council to take the advice of the hon. Member for Uxbridge (Mr. Beswick) and to appoint another administrator or financier if he thinks that is wise. The Bill simply says that he must appoint at least one.

Secondly, is it sufficient for the Minister to have six places to fill? Is the minimum of six the right one? Perhaps that depends upon what happens to the two Amendments to which some reference was made, asking us to add to what I might describe as the specified members of the Authority. The Amendments are those relating to a person having knowledge of labour relations, and to another person having knowledge of electricity. It would be better not to press the Amendment now and to see how we get on with the rest of the Clause. Then, having heard how the Committee decides on those other two Amendments, and if it is reasonable, we could come back at a later stage and raise the minimum, if that seemed a sensible thing to do. That is how I advise the Committee.

This rather narrow Amendment is not the best place to go into the general point raised by the hon. Member for Uxbridge on the nature of the Authority. It is relevant to say that there is a difference between this kind of governing authority and the normal one with which we usually have to deal. Policy is normally decided by the governing body. In this case, policy is firmly in the hands of the Minister, as it must be because of the weapons and other subjects about which hon. Gentlemen are aware. Therefore, the members of the Authority are more like general managers than like board directors. That being so, there is a fairly strong case for keeping them to a fairly low number.

This is a complicated business, and I quite agree that broad experience would be helpful on the Authority. The Lord President of the Council has the room to appoint such people. Generally speaking, this is a very difficult business to apprehend, and it would be good to keep the Authority itself rather in the nature of a general manager to the Minister who, under the Bill, has the duty to determine the big issues of policy.

At this stage I would like to say no more about the actual nature of the Authority. I hope the Committee will allow us to see what happens on the next two Amendments and will not press the Amendment now before us. If anything strange should happen on those Amendments, we will come back and look at this point again.

How many people who should be on an authority of this sort, a nationalised board or corporation, is always a matter of difficulty. It raises questions of detail rather than of principle. One person may think a proposed board is too small and another that it is too large.

It appears to my hon. Friends and myself on this occasion, and in the special circumstances that will surround this Authority, that the minimum number suggested is too low. Three members of this Authority are to have executive positions, and will be in the position, as the Minister has just said, of general managers. It is necessary and desirable to balance these three with, I should have thought, at least four others who are not in that position and will be able to take an outside, independent view, to criticise and maybe to prod the three executive members, and to bring fresh air and new light to the proceedings of the Authority. For that reason it appears to us wrong that an Authority such as is proposed in the Bill should have only six members.

However, as the Minister has said, we have other Amendments in view. We are proposing that certain other people should sit on the Authority together with the three who have already been chosen. The Minister's attitude to the other Amendments might alter or modify our opinion about the present Amendment. At first sight it would appear that if he agrees, as we hope he will, to accept on the Authority either one or two of the people we propose, making, shall we say, an agreed board of four or five, the case for having additional outsiders may be greater than it is at the moment. My hon. Friends and I will wait and hear what the Minister has to say on the further Amendments which are coming along.

We shall have ample opportunity to discuss the board and its procedure. We are particularly anxious to know the type of person the Minister has in mind to put on the board, apart from those who are already designated. We shall have ample opportunity on the Question, "That the Clause stand part of the Bill," and if we do not get satisfaction at that stage there will always be the Report stage. My hon. Friends would be willing to accept the suggestion of the Minister that we should wait to hear what he has to say on the two other Amendments and to raise the matter again either on the Clause or by putting down a further Amendment on Report.

I beg to ask leave to withdraw the Amendment.

Amendment, by leave, withdrawn.

I beg to move, in page 1, line 12, to leave out "Lord President of the Council," and to insert, "Minister of Supply."

The next two Amendments in similar terms, and the similar Amendment in page 2, line 11, can be discussed with this Amendment.

This is one of the most important issues in the Bill. We would have preferred that the present arrangements for conducting atomic energy development as a department of the Ministry of Supply should be continued, but the House approved the setting up of this Authority on the Second Reading of the Bill, so we have now to consider our objections to the manner in which the Authority is to be set up and in which it is to work.

Our main objection is to the note in the Bill that the Authority should be cut away from the Ministry of Supply. This is a mistake, because the proper and efficient administration and organisation that we all want in this matter can be better achieved by the Authority's working with the Government Department that is most closely associated with these activities. The Ministry of Supply is concerned with research into atomic developments on the weapon side, and has a general responsibility for engineering and for the production of engineering equipment for our basic industries.

Atomic energy development on the civil side will become one of our basic industries, a supply industry of great importance in just one particular, where the Ministry of Supply has supervision over the manufacture of heavy electrical generating gear and all that is associated with it. It is in electricity generation that the first steps will come in the civil development of atomic energy. The Ministry of Supply, in looking after the provision of machinery in the generation of electricity, ought to be working with the Atomic Energy Authority.

4.0 p.m.

To cut off the Ministry of Supply completely, as is suggested in this Bill, is, we think, a profound mistake. My own view is that in the change-over from steam generating of electricity to generating through the provision of heat from atomic reactors there ought to be a halfway stage in the development of gas turbines, and that, too, falls within the scope of the Ministry of Supply.

In fact, all these developments on the engineering side, the provision of equipment and research on the engineering and metal side, come under the Ministry of Supply, and to cut off that Ministry from the Authority in this way seems to be a very great mistake from the point of view of industrial organisation, and could have been suggested only for political reasons. We should like to know what those political reasons are.

If we look again at the speech of Lord Cherwell which began all this business, we can, I think, see that his dislike of the Ministry of Supply running atomic energy at that stage, a dislike based upon false assumptions, is still the basis of all that the Government are doing in this matter. Those false assumptions remain even though the actions that are taken on them have to be considered in this House.

To make sure that the relations between the Government and the Authority are clear and efficient and can usefully be developed, we believe that not only should the Authority work closely with its natural partner, the Ministry of Supply, so as to ensure smooth working and avoid departmental friction, but that the members of the Authority ought to be appointed by the Minister of Supply.

We agree that the Lord President of the Council, because of our Governmental set up, is the sort of senior Minister responsible for general scientific research and development and that he should have some general supervision over atomic energy developments, particularly on the research side. But the Lord President can do that job better—because he has to hold a balance between all sorts of scientific research and developments—if he is not too much involved in the day-to-day operations of this Authority and if he is not concerned with too much detail.

We think that the detailed operations ought to be closely associated with the Ministry of Supply because that would enable the Lord President to exercise his supervising functions in a more efficient and practical way. We have to take note, on a purely practical plane, that the Lord President is in another place, and, therefore, we have to consider how the House of Commons is to be treated in this matter.

When we want to ask Questions about the developments of atomic energy and about all the widespread activities that we hope are to flow from the developments that have so far taken place, we now have to go to the Minister of Works, to the building contractor, and not to the men who take part in the day-to-day work inside the building—not to the men who carried out and planned the developments and who are responsible to them, but to the man who erected the buildings. In our view, that is altogether wrong.

On Second Reading, the Minister of Works pointed out that under the Bill both the Lord President and the Minister of Supply have statutory relations with the Authority, but nowhere in the Bill is there any reference to the Minister of Works. All we know is that the Minister of Works will answer Questions in this House about atomic energy developments in general. We think it wrong that the building contractor should be answerable for the whole enterprise. We believe that the spokesman should be the Minister of Supply, because of the natural relations that exist between the Authority and the Ministry of Supply and which I have tried to describe.

If the Minister of Supply comes into the picture in the way we wish, to answer Questions in this House and to have some responsibility under the Lord President's general supervision for guiding and helping to guide atomic energy developments, then we want him to be more than a gramophone record. Because he has statutory duties under this Bill in relation to atomic weapons, we believe that that function should be taken a stage further.

In any case, we do not believe that it is possible to make such a clean break as proposed in the Bill between the weapons side and civil developments. Much of the research as we all know, is common research and some of the basic equipment must be common equipment. There must always be an exchange of information and ideas between both sides, and the division of expenditure, not only of money, but of men, materials and equipment must be fairly balanced between the two sides. Completely to split them will undoubtedly lead to waste of effort, men, money, materials and equipment.

That is one of the strong arguments which we put forward for keeping all atomic energy developments in fairly close contact. As we have said, we dislike the idea of the proposed Authority, and we think it unnecessary in principle and an unnecessarily clumsy machine. But if we are to have this Authority, then it ought, in our view, to be closely associated with the Ministry of Supply. To give effect to that necessary close association which we think there ought to be, we believe that the members of the Authority should be appointed by the Minister of Supply so that he may get that close association right from the beginning.

With those arguments, which I think are strong enough to warrant not only the consideration of the Government, but the acceptance of our Amendment, I now ask the Government to accept the Amendment.

In either case, there will be a horrible plurality of Ministers. If this Amendment is accepted, then the Minister of Supply is to have charge of the Authority, and tied as we unfortunately are by the Money Resolution, and perhaps only for that reason, we are unable to extend his powers any further. That is not exactly our fault at this stage. At any rate, there will only be two of them.

I propose to address myself particularly to the Minister of Works. I know him to be a zealous and loving student of English, and he will remember that Thomas Love Peacock objected to the cracks in the palisade, the joins, the places where the Ministerial responsibility passed from one Minister to another. The right hon. Gentleman will remember that it was at that point that the palisade broke and that the waters came in and swept over the kingdom.

This is just a case in point. We are to be committed, in this Bill, to that remote and avuncular figure, the Lord President; avuncular, of course, particularly towards right hon. and hon. Gentlemen opposite but remote, too remote, from us all. Instead of him, if any question arises we are to fall back on the Minister of Works.

I have no personal quarrel with the Minister of Works—far from it. He is in charge of parks, old houses and many other interesting things. It is no doubt from the parks that he brings the flowery conceits that we have already heard, and from the old houses that atmosphere of romance which he so attractively seeks to impart into a discussion of the somewhat grim and dreary subject of atomic energy. Those embellishments, of course, are always welcome. He fulfills the time-honoured rôle of cavalry in a battle—when there used to be cavalry; he adds a touch of distinction to an otherwise sordid scene.

With all that we can part, with great difficulty. But if he is to justify his position, not on the score of his personal attractiveness and the charming qualities appertaining to himself and to his office, but on the score of public interest, it becomes a little odder to see exactly what he is doing in this gallery. He is only here because the Lord President is not. One of them is over there doing the work and the other is here, speaking. If I am right there is a Biblical precedent for the voice belonging to one person and that which lay behind it to another.

In all seriousness, it is a thoroughly bad precedent to have in another place the Minister responsible for this kind of thing, and to have no one here to answer for him other than a Minister who has some quite different job but who is put into this simply because, it being spring time, the parks are doing well at the moment.

The Minister of Supply is in it, anyhow. He is in charge of weapons, atomic weapons and the like, and arrangements have to be made with him before the Authority can have any dealings with weapons at all. It is not just a question of formal consent or anything of that sort—these are arrangements in every sense of the word. And a very curious line is drawn. The Authority can do research leading towards the production of weapons, but as soon as it begins to work, then it has to make arrangements with the Minister of Supply. Broadly speaking, that is the line of distinction in the Bill.

Why not give him—looking as he does, if he will allow me to say so, so eager as he sits there—not only that restricted and ill-defined function, but a fine, sweeping control over the whole thing? He is in a very strong position. He is the only effective Minister in this House who is to do anything about it. His right hon. Friend next to him speaks and does not act. But the Minister of Supply acts—I do not see why he should not take over the whole thing. At the worst, even given the Money Resolution, there would be only two of them instead of three. At the very best, the Government might think again and put the Minister of Supply in complete charge.

4.15 p.m.

At the outset, I must confess that I am not happy about the Amendment. I agree absolutely with my right hon. and hon. Friends in deploring the Bill. I have never seen any necessity whatever for taking this vast, new—and if I may say so to my hon. and learned Friend the Member for Kettering (Mr. Mitchison)— far from dreary subject of atomic energy from the direct control of Government and Parliament.

I agree with them also in their objection. I think that there is a very sound objection in principle to having the Minister, who ultimately will be responsible to the House of Commons for all these matters, so remote from it as is the present holder of that office. But, with respect to my right hon. and hon. Friends, I submit that that latter point has nothing to do with the Bill. There is nothing in the Bill which makes it necessary for the Lord President of the Council not to be a Member of the House of Commons. That could be changed—and ought to be changed. I know that some day it will be changed.

But I suggest that the retention of the ultimate control in this matter in the hands of the Lord President of the Council who, as it happens—by an extremely bad arrangement—is not a Member of this House, is not a good ground for objecting to the machinery contemplated here. That is a matter which could very easily be corrected without this Amendment, and which ought to be corrected both on that and a great many other grounds.

Though I am troubled about the Amendment my mind is by no means closed, and I will listen to the arguments with great interest. I have ventured to intervene early in the hope that my doubts may be cleared up. It seems to me that the Minister of Supply is responsible, not quite wholly but mainly, for supplying the armaments industry. His office was created for that purpose. His whole function and administrative job is, as it were, closely linked with the armaments industry. Indeed, it was one of the points made both by my hon. Friend the Member for Hillsborough (Mr. G. Darling) and by my hon. and learned Friend the Member for Kettering (Mr. Mitchison) that it must remain closely associated with him.

We are dealing here with a most fundamental new power. It has been said, I think, that no more influential, or potentially influential change in the life of man has been made since the discovery of fire. It is in every way a good and not a bad thing that, in our arangements for the further pursuit of this vast power, our thinking should get, not closer and closer to, but further and further from the association of atomic energy with destructive purposes.

If the Bill is ever to become law at all I do not regard it as one of the bad things in it—though there are many—that it takes this matter a little further from the ambit of the armaments industry, and a little closer to the all-embracing, scientific research and development for civil and constructive purposes. I do not pretend for a moment that this can be a conclusive argument, but we should consider this very carefully.

We should not regard it as axiomatic that because the matter has so far been in the hands of the Ministry of Supply, and because this new machinery that is being set up is an inconvenient and not very practical break in the existing arrangements, we must, therefore, stick to the old set-up and keep all this dominated by the war purposes which brought it into existence in the first place, but which will by no means be all those involved in it.

One could wish to see the life of this community transformed out of all recognition by the peaceful and constructive development and use of atomic energy. One could wish to see our problems of power ended for all time; the standard of life improved; the amenities of living developed, and great advances made in civilisation by the full pursuit of this inquiry and the harnessing of all our resources to its development. But does anyone think that that would be best done by a Ministry whose main objective—I admit that it is not its whole objective—is to supply power, arms and material to a war potential?

I ask my hon. Friends to consider very carefully whether the Amendment is sound in principle. I can fully appreciate and sympathise with what they have said about the complete undesirability of the Minister who is ultimately responsible for these matters being in the House of Lords instead of the House of Commons, but that is a purely incidental or accidental circumstance, which can and ought to be changed in a moment. The mere fact that the present holder of the office of Lord President of the Council is not a Member of the House of Commons is not anything like sufficient reason for keeping the ultimate direction, responsibility and control of the development of atomic energy in the hands of a war Ministry.

I do not know how the hon. Member for Nelson and Colne (Mr. S. Silverman) voted on Second Reading, but I should have thought that the arguments he has advanced this afternoon, with many of which I agree—especially in relation to separating the industrial and war potential sides of this project—were arguments which supported my right hon. Friend when he moved the Second Reading. It is that very principle of differentiation between those two forms of exercise which we are trying to put forward in the Bill.

There is one question which I should like to ask those who support the Amendment. They will appreciate that, having passed the Money Resolution, we are bound by the fact that the Lord President of the Council is financially responsible to the House for the payments out by the Authority over the next few years. I listened very carefully to learn how hon. Members opposite would tie that fact up with the Amendment. They are seeking to make the Lord President responsible financially, and the Minister of Supply responsible for the appointment of the members of the Authority, and if one looks at the Amendment in that light it does not make sense.

We cannot have a division of financial responsibility and administrative responsibility at the same time. That would make for far worse confusion. Until hon. Members opposite answer this question they will not convince anybody that the Amendment is a sound one.

I thought I had answered that question. We realise that we are tied by the Money Resolution, but we should much rather see one person responsible for both sides of the matter, and we say that that person should be the Minister of Supply.

That does not get over the difficulty that we are tied by the Money Resolution, and we cannot argue about it. It is no good putting down an Amendment which does not run from the word "go". I hope that as early as possible we shall get on to Amendments which have more substance than this.

In rising to support the Amendment, I should like to say, at the outset, how much we are in favour of atomic energy being applied for peaceful purposes. None of us would differ from my hon. Friend the Member for Nelson and Colne (Mr. S. Silverman) in that respect. On the other hand, I do not share his doubts about the suitability of the Minister of Supply for proceeding with its development. My hon. Friend indicated that the Minister of Supply is an entirely warlike Minister.

He is not even mainly a warlike Minister. He has for a long time been concerned with other industries, such as the motor industry, the machine tool industry, the steel industry, and its many associated industries. It is quite clear that the nature of the Ministry has undergone an evolutionary change in postwar years. Although it began as a Ministry which was primarily concerned with the supply of materials and weapons to the Services it has now changed its nature substantially, and my hon. Friend's argument in that respect falls to the ground.

My hon. Friend should bear in mind that whereas the Lord President of the Council is usually a very prominent and influential member of the Government, and usually a member of the inner Cabinet, the Minister of Supply is rarely so.

I shall revert to that point in a moment.

The Amendment is both chivalrous and practical. It is chivalrous because it is designed to save the Minister of Supply from the arbitrary decisions of the Cabinet, and although on Second Reading he protested that he did not want to be saved, we are determined to do all that we can to procure his salvation.

We are moved by more than generosity; we are moved by the practical considerations involved in this transfer. The Bill, by its nature, suggests that the Government are once again doing what they have done in the past. They are bringing about a situation in which three Departments grow where only one grew before. If we consider the number of committees which will proliferate as a result of this change, and the new and involved chain of command which the transfer will establish, we can see that instead of the administration of atomic energy production being simplified it will be vastly more complicated.

Suddenly we find that the office of the Lord President is exhumed from another place and given a new function. One might regard the present proposals as a form of operation to restore an appendix which was taken out during the war. Originally, the Lord President was responsible for a certain amount of atomic research and development, but when it was decided that this development and research should be transferred to America the part played by the Lord President was allowed to lapse, and it was only after the war, when the atomic energy project was fully revived, that the matter proceeded full steam ahead under the direction of a Minister of Supply.

In the post-war years the whole nature of the project changed, and instead of being largely experimental and merely a matter of research and theoretical development, it became a practical accomplishment. The weapon was produced, and we went on to discover new applications of atomic energy for industrial purposes. All that was done under the direction and control of Ministers of Supply. I should like to pay tribute both to the present Minister of Supply and his predecessor for the part they played in the eminently successful development of atomic energy, which has won praise not only in this country but in America and other countries. It is an achievement of which we can all be proud.

Now, suddenly, out of the blue, the Government have decided that the Lord President, from another place, is to be put in charge of the whole of this great undertaking. A few minutes ago my hon. Friend the Member for Nelson and Colne said that it was only fortuitous that the Lord President is now in another place. That is true, but he is there now. It is now, in the formative period of the new Authority, that it is decided that he shall be responsible for the nomination of the members of the Authority.

4.30 p.m.

He is far away removed from inquiry in the House of Commons, far removed from examination by hon. Members here. He will establish a new liaison with an Authority of which no one has yet had any experience. He will have to renew all those links the Bill so abruptly breaks. There is bound to be at the very least a fairly lengthy period of transitional confusion, when authority is being dispersed in the way I have described. No one can imagine that that will be a good thing. We shall have a peculiar marriage of the bureaucracy and the technocracy under the supervision of the aristocracy, and it is quite clear that very little can come out of that. We shall have no power to scrutinise in any way the annual report the Lord President will present.

By its nature atomic development must be secret. There must be in atomic development a vast area whose financial detail cannot be examined, yet on all sides we are deeply concerned about economy in administration. Is it the intention by this Bill to attribute new power to the Lord President by which the Lord President will in some obscure way side- track the existing atomic energy division of the Ministry of Supply—or, perhaps, I should say the division of the Ministry of Supply that has existed in that form? Is that the intention? Or is the intention that after a substantial slice of that authority has been allocated to the Minister of Supply the rest will be attributed to the Lord President?

If that happens we shall see the genesis of a completely new Department, and although the responsibility of the Minister of Supply for the project will be abolished we shall have an entirely new Authority growing up under the aegis of the Lord President. How can it be otherwise? Because atomic energy is an important and a complex development requiring great skill, requiring a great deal of detailed supervision. The Lord President at the moment has not a Department capable of that.

Therefore, we on this side of the Committee have extremely grave doubts about the future. What is to happen is this. The technicians, the physicists and other scientists will be torn bleeding from the Ministry of Supply and thrust into the desert of the new Authority, or, alternatively, thrust into the convalescent charge of the Lord President. That is not a prospect that anyone can face with equanimity. It will cause a period of confusion, of doubt, and, indeed, of mistrust during this present extremely difficult transitional era.

Everyone employed wants to know who is the boss. Is he to be the Minister of Supply? Is he to be the Minister of Works? Is he to be the Lord President? To whom will the distinguished scientists turn, who have already done such tremendous work for the development of atomic energy? Who is to be their superior? Is there to be a consortium of employers? Is there to be an omnium gatherum of all those Ministers who have suddenly begun to flower out of this legislation? The change from the Minister of Supply to the Lord President is arbitrary. It will lead to inefficiency. It will lead to disruption.

For these reasons I hope that my hon. Friends will go into the Lobby in support of the Amendment.

My hon. Friends and I have found an unexpected ally in the person of the hon. Gentleman the Member for Nelson and Colne (Mr. S. Silverman).

Certainly not. The hon. Gentleman is known for his mental aberrations. On this occasion, of course, he is profoundly right. He adumbrated the argument that the civil and peaceful development of atomic energy should be removed as far as possible from the function and jurisdiction of what is, to my mind, essentially a military Department, the Ministry of Supply. It is an interesting speculation to wonder whether, 10 years after the end of hostilities, we should have a Ministry of Supply at all. I should be very interested on another occasion to develop the argument in some detail.

However, the fallacy of the argument put forward by the hon. Gentleman the Member for Coventry, North (Mr. Edelman) about the industrial function of the Ministry of Supply is surely this. In the years of scarcities and shortages immediately after the end of the war, when there were certainly grave difficulties in providing an adequate supply of steel and associated raw materials, in the early days of rearmament in 1950 and 1951, there was probably a legitimate and useful industrial purpose for the Ministry of Supply in connection with machine tools.

Today, and in the future, the proper function of the truncated Ministry of Supply should surely be the provision of arms and equipment for certain branches of the Armed Forces. There is a powerful argument which says that if the Royal Navy can be provided for by Admiralty supply services, if the Royal Air Force can be provided for by Air Ministry supply services, then the requirements of the Army can be provided for by War Office supply services.

However, I shall not go too far afield into that interesting argument.

The principle, to my mind, is perfectly clear, that the function of what remains of the Ministry of Supply, and for the period that it does so remain, should be very largely of a military character, and that all such important activities as those connected with the civil and peaceful development of atomic energy should be vested in an autonomous authority and that that authority should be provided with the means, within the statute, of collaborating as widely as possible with all forms of industry, whether nationalised or privately owned, in the United Kingdom. That was very largely the argument of the hon. Member for Nelson and Colne. I invite him to read the precise terms of Clause 2, which gives effect so exactly to the argument he used, and which I now repeat.

The hon. Member for Coventry, North used these words, thus revealing a grave fallacy in his argument, "Atomic development must be secret." That is exactly what atomic development today must not be. All that is secret about atomic development today is the production of fissionable material. From that point onwards let all knowledge be spread as widely as possible throughout the industrial field, calling in aid all the inventiveness and the talent that is available to us in British industry, in order that we may provide most generously and fruitfully for our needs.

For the record, may I clarify what I said about secrecy in atomic energy development? It was my intention, at any rate, to say that there must be an area of the development of atomic energy which has to be secret.

The hon. Gentleman has corrected himself, but I am sorry to say that he did not say that. He used the words, "Atomic development must be secret." I wish at once to refute that argument, because it is the underlying fallacy in the case he put to the Committee.

We in this country, in our approach to this matter, are not in any way differing from the United States of America. I quote just one sentence from President Eisenhower's Message to Congress on 17th February, in which he said: as a Departmental organisation, to stimulate a spirit of enterprise in British industry. I am sorry that I have driven the Parliamentary Secretary to the Ministry of Supply from the Chamber, for I am in no way being abusive to the present holders of the office in the Ministry. I believe in the smallness of Government. I do not believe in proliferating Ministries but in the minimum number of Ministries and today we have far too many.

Finally, the Ministry of Supply will remain responsible for atomic weapons. I resist this series of Amendments, as I hope the Government will resist them, because it seems to me that a Cabinet Minister with a broad vision over the whole field of the requirements of atomic development is a better person to be responsible to another place and, through my right hon. Friend, to this House, for the manifold applications which we can envisage even at this early stage in the use of atomic inventions.

My right hon. Friend the Minister of Works is interested in atomic development through the vast building programme which is entailed, and of course it is the fact that the architects in his Department are largely engaged on that work. In a few moments we shall be dealing with an Amendment pleading that there should be, on the Atomic Energy Authority's Board, a person with special knowledge of the electrical generating industry. That may be a valid argument, and we shall deal with it in due course. I conceive that electricity is the most important single product of the peaceful applications of atomic energy, but surely if we accept that argument we should also accept an argument that if the Atomic Energy Authority for civilian purposes is to be placed under any single administration, it should be not the Ministry of Supply but the Ministry of Fuel and Power.

Already I gather support from the other side of the Committee.

But cannot we go a little further? The Americans have launched the first atomic-powered submarine. Atomic energy will have manifold maritime and marine applications. Why not then, put the Authority under the control of the Ministry of Transport and Civil Aviation? We might say that radio-active isotopes and other similar products have many biological and health applications. In that case, why not put the authority under the control of the Ministry of Health? We might say that there would be very many agricultural applications of the products of atomic energy, so why not put the Authority under the Minister of Agriculture and Fisheries?

Hence, the arguments of hon. Members opposite advanced in support of the Amendments are false. What is wanted is a Cabinet Minister with a broad vision of all the possibilities of atomic developments in manifold different directions, and responsible to Parliament for the activities of the Authority. We do not want the Authority to be placed under the responsibility of such a Ministry as the Ministry of Supply, the limited function of which is today essentially of a military character. I trust that the Amendment and those others which deal with the same point will be resisted.

The fallacy of the argument which the hon. Member for Kidderminster (Mr. Nabarro) has put, with his usual eloquence, is simply this: that the Bill does not do what he suggests it does. It does not separate the military use of atomic energy from the civilian use. We have been into this point at previous stages. It is true that for the time being, at any rate—and the Minister has not denied this—the Atomic Energy Authority, if established, will have a great deal to do with the military use of atomic energy.

4.45 p.m.

Is there not a misconception on this point? My hon. Friend says the Bill does not separate the military from the civilian development of atomic energy, but unless I misread Clause 2, that is precisely what the Clause does. Clause 2 sets out, throughout the whole of the page, the functions which are to be taken over by the new Authority. At the bottom of the page is the first proviso:

"Provided that—

(i) the Authority shall not, save in accordance with arrangements made with the Minister of Supply, develop or produce any weapon or part of a weapon …"

I do not think that my hon. Friend was present when we discussed the Money Resolution. There is a great deal of confusion on this point. I should be glad to have enlightenment from the Minister if I am wrong, but I am of the opinion that the new Authority will do much of the work which is being done by the Ministry of Supply in the military and the weapon field. If that is not so, why does the Bill contain all these elaborate arrangements for secrecy? They are in the Bill, surely, because matters arise here which are vital to the nation from a military point of view.

The hon. Member for Kidderminster said this Authority would be free to move into industry. He said it would be able to develop the industrial uses of atomic energy. But the Minister of Works told us earlier that the members of the Authority will be—and I noted his phrase—"general managers for the Lord President of the Council." How can it be argued that this is a free commercial undertaking? That is why I modestly put forward on Second Reading the view that we did not need the Authority at all and that, if the control of atomic-energised power stations is now possible, it could pass direct to the British Electricity Authority.

I sympathise with the views of my hon. Friend the Member for Nelson and Colne, but I do not believe his point of view is strengthened by support of the proposal that the Lord President of the Council should have the supervision of the Authority In fact, I should say that the Lord President of the Council is probably the least well-equipped of any Minister to do this work, unless it is the Lord Privy Seal, whose intervention on Second Reading we recall. That is why I supported the hon. Member for Kidderminster by an exclamation when he was discussing the Ministry of Fuel and Power. I would prefer the Ministry of Fuel and Power, if it were not to be the Ministry of Supply. But in the circumstances I believe that the Ministry of Supply is the right Ministry.

The three reasons for this have already been mentioned by my hon. Friends and there is no need for me to repeat them. In the first place, he is available in the House. I do not think that that is a small point. It is not a matter of principle, of course, for we may have changes of Government. I hope we shall have a new Government, in which case it is very likely that the Lord President of the Council will not be in another place.

At present, however, this Minister, who is to spend a great deal of public money, is in another place. It must be remembered that the Authority will not spend its own money; it will spend the taxpayers' money. In the same way that, with the passing of time and changing historical precedents, we no longer have the Prime Minister or the Chancellor of the Exchequer in another place, I think there is a very good argument for saying that it is indefensible that a Minister who is to spend so much money as is proposed in the Bill should be in another place.

Another argument which has been advanced is that the Ministry of Supply is very closely in touch with industry. For instance, I hope that fairly soon we shall again have a nationalised iron and steel industry. The iron and steel industry was, of course, responsible to the Minister of Supply. The argument that the Ministry of Supply is not equipped as a Government Department to deal with industry is surely a fallacy. I think that the most powerful argument for having the Minister of Supply as the responsible Minister is that he has been doing the job already and that he has experience in the matter. The Ministry has the experience and it has been doing it well. Experience may not always be a qualification for undertaking a responsibility, but I fail to see why experience should now be regarded as a positive disqualification.

It may be for the convenience of the Committee if I intervene at this stage. It is very difficult to know exactly what arguments I have to answer. The hon. Member for Hillsborough (Mr. G. Darling), who moved the Amendment, said that the Lord President should have general supervision of the Authority. He wanted the Minister of Supply only to appoint the members, and the Lord President to have some general supervision of the Authority. The hon. and learned Member for Kettering (Mr. Mitchison) and, I think, the hon. Member for Coventry, North (Mr. Edelman) have stated that it was only because the Money Resolution was so narrowly drawn that they did not try to put the Minister of Supply in charge of the whole affair without having the Lord President at all. The hon. Member for Cleveland (Mr. Palmer) says that if he could choose, he would prefer the Minister of Fuel and Power.

I said that I would prefer the Minister of Fuel and Power to the Lord President of the Council, but I spoke in support of the Minister of Supply.

But it is a fragmentation to bring in the Minister of Fuel and Power. The hon. Gentleman said he would prefer the Minister of Fuel and Power to the Lord President. Then we had the hon. Member for Nelson and Colne (Mr. S. Silverman) saying that he did not want the Minister of Supply, and he would like to have the Lord President, subject to the accident that he happens to be in another place. That is a confusing set of arguments to answer. I will take the Amendments as they are.

The effect of this group of Amendments is to give to the Minister of Supply the duty of appointing the members of the Authority. On the other hand, the Lord President, as already pointed out, would have the duty of fixing their remuneration, and he would also have the general duty, under Clause 3, of seeing that atomic energy is developed. I suggest to the Committee that it is an absurd position that the Minister who has the overriding duty to continue our atomic energy project in this country should not be the Minister who appoints the members of the Authority.

It is clear from the interesting debate we have had that the real argument is that the transfer which Parliament has already decided from the Minister of Supply to the Lord President does not please hon. Members opposite, and they wish to have an opportunity once more to resist it. I can only repeat the arguments, already well known to the Committee, which led the Government to this change of Ministerial responsibility.

It is a fact that there are various claimants for fissile material, and it is also a fact that this is an extremely expensive business and that we shall not have enough money to experiment in all directions at once to the extent to which the enthusiasts would like. Therefore, it is necessary to have a final decision, so that the competing claims upon this fissile material can be looked at and decided. In the Government's view that demands a senior Cabinet Minister who has no Departmental interest in the use of atomic energy.

Surely the Lord President also has the responsibility for the general policy towards scientific research and other activities outside atomic energy, and he has to balance what part of the national resources should be devoted to each section. The argument that he is acting in a judicial capacity for the supply of fissile material is surely against the argument of the general position.

The hon. Gentleman's intervention strengthens my case, that the Lord President is, clearly, a very suitable Minister because he is the man in the Government who is responsible for science generally. Therefore, he is in contact with the universities and with research organisations, and that makes him a very suitable Minister to have charge of the atomic energy project which is, in itself, a research and development project.

I think it was my hon. Friend the Member for Kidderminster (Mr. Nabarro) who put his finger on the point when he said that the Minister of Fuel and Power was now becoming a hot competitor with the Minister of Supply for the resources of the Atomic Energy Authority. The Lord President will hear the views of his colleagues when they come to represent their various claims. He will also hear the views of the defence forces who want weapons. He will hear the views of the Minister of Fuel and Power who wants to get on with the generation of electricity and he will hear from the Minister of Health what he requires in the field of medicine. He will also hear from the Minister of Transport what he requires in the way of mobile reactors for ships, and, I suppose, the President of the Board of Trade will represent the interests of those industrialists who want isotopes for plastic work and other industrial processes.

Obviously, there has to be give and take somewhere. The question is where should the give and take be. It is the view of the Government that this is such a serious enterprise, costing so much money and involving such tremendous national interests, that give and take must occur at Ministerial level. Therefore, it really would not be right to put one of the claimants in charge. That is the argument.

I am trying to understand how that works out. I cannot understand what requirements the Minister of Supply has independently of the requirements of the defence services.

The Minister of Supply places with the manufacturers the requirements which the Services Departments have stated to him.

I said that the Minister of Supply is responsible to the Services for getting their requirements manufactured, and there will be no clean break, as I think one hon. Gentleman said might or should occur, with the Ministry of Supply. My right hon. Friend will be in a position to deal with the manufacturer who does not only make weapons. There is a great deal of advantage in having production going on in works which manufacture a wide range of products. If one wants half-track vehicles, it is a good thing to go to someone who makes an ordinary tractor or something like that. There is an advantage by keeping this combination, if I may put it that way, between the two sides, civil and military, but that means that someone has to decide the proportion of resources which should go either to the civil or the military side.

That is the general argument against returning to the Ministry of Supply and for that reason I ask the Committee to reject the Amendment. If hon. Members consider the Amendments themselves, apart from the general argument, they will see that they produce such an absurd situation—with one Minister appointing the members and another Minister deciding their salaries—that on mere common sense and logic the Committee would not wish to press them to a Division.

5.0 p.m.

The Minister has not appreciated what I was trying to convey to him in my interruption. We have had today an extremely interesting Report covering the work of the Department of Scientific and Industrial Research. The Lord President issues this Report and makes some excellent comments. My point was that the Lord President is responsible for the general scientific policy of the Government and for general policy towards research. The Bill seeks to make the Lord President responsible also for atomic energy. Obviously, on the argument used by the Minister, whoever was responsible for general policy would have to balance what should be the physical needs of a particular section of research or industry. In the case of atomic energy, various organisations compete for resources to undertake fundamental research.

I am prepared to admit that the field of atomic research is wider and that its working affects other sectors; but, nevertheless, the Lord President must balance resources. In his report we see where the fuel section of our economy and the needs of research or agriculture must all be balanced by him together with the needs of the Atomic Energy Authority that the Bill proposes to set up. Therefore, if there is a Minister who is responsible for general policy, it is wrong to put him as a Minister on an Authority responsible for a particular section of research, however important it may be. That was the point which was raised by my hon. Friend the Member for Hillsborough (Mr. G. Darling).

I agree with the hon. Member for Kidderminster (Mr. Nabarro) that one day we should have a concentration on the civil purposes of atomic energy. He chided my hon. Friend the Member for Nelson and Colne (Mr. S. Silverman) for being a deviationist. If he is not careful, the hon. Member will become a fellow traveller with my hon. Friend the Member for South Ayrshire (Mr. Emrys Hughes).

Yes, I mean the hon. Member.

We must be realistic in this matter. It is difficult to separate fundamental research from these other purposes, however much we may want to do so, at this stage. There is a great interchange of information and research on this matter. However much we may wish for 100 per cent, concentration on the civilian side, there must still be research for defence purposes. Inevitably, the two will overlap, and it is wrong to argue that the Ministry of Supply are entirely concerned with the development of war research or that its work is concerned solely with defence purposes. Research in both sectors is interlocked. That is why I should have preferred that at this stage the Ministry of Supply should continue and that is why it is wrong to make the change that has been suggested.

I believe that one day we shall have to have a Cabinet Minister who is entirely devoted to atomic energy. I should certainly support that, and I hope that I should have the support of the hon. Member for Kidderminster. But we have not reached that point yet. The Lord President is responsible for other matters outside atomic energy, even in the field of scientific research. Eventually, the time will come to appoint a Minister for atomic energy who is responsible to the House of Commons.

That leads to my second point, which has been stressed over and over again. I know that the arrangement can be altered and that the Lord President could be in the House of Commons; but the fact is that he is not now in the Commons. We know the historical reasons for that. This Government, by their whole general policy over the last two years, have shown a contempt for the House. [HON. MEMBERS: "Oh."] Certainly. The Prime Minister was very sympathetic to his "overlord" system, which failed. We know how the Ministers of co-ordination failed; the hon. Member for Kidderminster knows only too well.

The hon. Member may shout loudly from his seat, but that does not strengthen his argument. Often he confuses noise with argument; that is one of his troubles.

Throughout the present Administration, the Prime Minister has shown a sympathy to the other Chamber, where Ministers responsible for key policy can be free from Parliamentary criticism and supervision. That is why we want a Minister of Supply in charge of the Authority, so that hon. Members of this House can cross-examine him on important matters.

Atomic energy is an important matter and will increase in importance.

While we do not have a Cabinet Minister solely responsible for atomic energy, as we should have, and will have one day, it is right and proper that the Minister should be in this House. The Lord President is in another place and is responsible also for other fields of scientific research. For that reason, we should continue the existing arrangement with the Ministry of Supply, which has worked well. We have only to read the various reports of the development of atomic energy; the results of which are second to none and can be compared with those of any other country.

It is wrong to alter something which has been successful. In the absence of a Cabinet Minister solely responsible for atomic energy production, it is wrong to use the Lord President. I hope that the Amendment, if not accepted, will at least impress upon the Minister responsible the need for caution in this matter.

The reply from the Minister of Works was based on the supposition that we must avoid a division of function as between two Ministers. It is strange that that argument should come from a Minister who has never had anything to do with atomic energy as far as this House is concerned, and that while he was deploying this argument his right hon. Friend the Minister of Supply, who knows all about the development, had to sit down and listen. We have never had a more classic illustration of division of function. The comedy was at its best when we realised that the right hon. Gentleman's objective in coming to the Box to argue that case was to cut his right hon. Friend's throat, while we on this side are trying to keep the knife away from him.

The hon. Member for Kidderminster (Mr. Nabarro) thought he had found an ally in my hon. Friend the Member for Nelson and Colne (Mr. S. Silverman). He suggested that my hon. Friend was arguing the case for the Government. I am beginning to wonder exactly what is the function of the hon. Member for Kidderminster in the House. I begin to think that he is a first-class fifth columnist from this party who is trying to get rid of the Government in stages by cuts here and there. We on this side have never concealed that we would like to get rid of the Government. The hon. Member, however, does not do that. He turns his attention to his right hon. Friends one at a time. The Minister of Materials was his first victim. Now that that Minister has gone, the hon. Member is directing his attention to the Minister of Supply.

The thesis of simplification of the rôle of government must not be confused with what the hon. Gentleman is accusing me of, which is trying to expunge the Government. It is nothing of the sort.

I have never made any bones about the fact that I should like to get rid of the lot of them, but I have not been half as successful as the hon. Gentleman has. He has been able to wipe out one of his right hon. Friends who has now ceased to exist so far as this House is concerned. He then turned his attention to the Minister of Food; the dagger has already gone through the fleshy parts of that Minister, and is about to enter the arteries. Now he is hoping to do the hat trick. He has turned his attention on the Minister of Supply, and that right hon. Gentleman must be feeling very insecure indeed in view of the success of the hon. Member for Kidderminster in dealing with other Ministers. I take it that in the course of the next year or two we shall see a falling of heads all along the Treasury Bench. I congratulate the hon. Gentleman on his success.

One of the arguments in favour of retaining the Lord President of the Council is that he is already in charge of scientific research. That is not a very good argument. One of the first things that happened at the D.S.I.R. when the Government took office was that the Lord President of the Council immediately cut its resources. The D.S.I.R. should have been reinvigorated, but it was, in fact, stultified by the attentions of the Lord President of the Council. If the Lord President of the Council wants to see, as we all do, a really live virile department in charge of atomic energy, the last department that he should be put in charge of is this one.

For all those reasons, I submit that the Minister should take this Bill away and establish the principle of undivided func- tion. We should then have the Minister of Supply in charge of this issue. It has been said by hon. Members opposite that the Ministry of Supply is essentially a war Department. I do not accept that that is so. My hon. Friend the Member for Coventry, North (Mr. Edelman) pointed out that most of its functions are connected with the pursuit of peace, for the engineering industry and the provision of materials for that industry come within its ambit. If this is purely a war-time Department, then it follows that the engineering industry must be considered a war-time enterprise.

We know that the uses to which many of the components produced in the engineering industry in peace are put change in war. We know that switch gear, which has an important function in peace-time, can be an important war-time product. But it is no use arguing that the Ministry of Supply is a war Department. One might say that the Board of Trade is a war Department because it has a certain connection with the cotton industry which, in wartime, produces uniforms and other articles of war, but it is equally useful in peacetime.

It is true, is it not, that the Ministry of Supply is the direct lineal descendant of the old Ministry of Munitions, although it has spread over into some aspects of civil production? The Board of Trade, on the other hand, was only incidentally a war Department.

I do not dissent from what my hon. Friend says, but I am pointing out that a Department which is created for one purpose may not necessarily remain exactly the same type of Department. As our economy changes, so do the functions of certain Departments. The functions of Departments have even been known to change with a change of Ministers and—who knows?—that process may not yet be at an end.

5.15 p.m.

For all these reasons, I should have thought that the complete futility of this Bill has been demonstrated. It would be most interesting if we could have a discussion with the Minister of Supply about his real feeling in this matter. I realise that he is a captive these days. He is not only in danger from his back benchers, but he is also in danger of getting a side kick from his right hon. Friend the Minister of Works. I hope that the Government will think again, will take the Bill back and allow us to develop our atomic research under the auspices of the Ministry of Supply.

We attach a great deal of importance to this Amendment because we believe that if it were accepted by the Government it would remove the major defect of the Bill. It has been argued by the Minister of Works that it would be unwise to accept this Amendment primarily because it would put the whole problem of allocations and everything to do with atomic energy into the hands of the Minister of Supply who is an interested party, and that it would be much better that major problems of allocation should rest with the Lord President of the Council.

That is not the argument, because that is not what the Amendment does. All that the Amendment does is to create the absurd position in which my right hon. Friend has to appoint the members of the Authority. That is something quite different.

The person who appoints the members of the Authority would obviously have the major control over the Authority. If the right hon. Gentleman did not advance that argument in detail today—and I thought he did—he certainly advanced that argument very forcibly when we were debating the matter on an earlier occasion; and my hon. Friend the Member for Nelson and Colne (Mr. S. Silverman) advanced that argument today, as did others in the Committee.

It seems to me that the main argument, and the only tenable one, against our Amendment is that it is undesirable that the Minister of Supply should be in a position of authority in this sphere because the Lord President of the Council has no direct interest in the production of fissile material, and, therefore, he should have sole and complete control of the whole affair.

Before I deal with the arguments in favour of the Amendment, I want to deal with that particular argument because it seems to me the only sensible one which can be advanced against us. It is interesting to note that the White Paper in which it is proposed to set up this Authority does not give one single reason why the Lord President of the Council and not the Minister of Supply should be responsible for the Authority. The only reasons which have been advanced are those to which I have just referred and which have been put forward on two occasions by the Minister of Works.

I suggest that the argument is based on a number of fallacies. The first fallacy, as some of my hon. Friends have pointed out, is that it is quite wrong to regard the Ministry of Supply as a military Department which has some particular requirements of its own for fissile material. It has no requirements of its own. It acts as an agent for the three Service Departments and sometimes for a number of other Government Departments as well.

I think that the Minister will agree with me when I say that it is wrong to suggest that this is a Department concerned only with military affairs. Indeed, the development during the last few years has been most desirable. The Department has been concerned more and more with civilian affairs. I hope that as time goes on and the need for rearmament disappears or diminishes the Ministry of Supply will continue to fulfil its important function as a Department primarily concerned with our great engineering industries.

While I was Minister—and no doubt the same applies to the present Minister—the Department was occupied to a large extent in connection with research and development in private industry. The present Minister has tried to force exports from the engineer industry, as I did, sometimes in competition with our military requirements, because it was Government policy to do so. In a whole range of engineering matters it is the Ministry of Supply and not the President of the Board of Trade who has Ministerial responsibility for the welfare of these industries, to see that research is adequate and that the industries are fulfilling their proper functions in the British economy.

Therefore, it is wrong to say that the Ministry is a military organisation without any requirements of its own. If it is said that the Ministry acts as agent for the Service Departments, among its other activities, of course that is true, but it does not itself want any fissile material or anything else. It acts as agent. That is fallacy number one which has been dealt with by some of my hon. Friends, but I wished to emphasise it because it is important.

I come to the second and more important point. I hope that my hon. Friend the Member for Nelson and Colne will regard this argument favourably. It is that neither the Minister of Supply nor the Lord President of the Council should under any circumstances allocate fissile material between war-time and peace-time purposes. That is a matter of general Government responsibility. During my time in office, and I am sure that it is the same now, major Government problems of that sort were not settled by any one Minister. They were settled by the Government. I do not think that it is disclosing any secret to say that in my time these question were decided by a Government Committee under the chairmanship of the Prime Minister. Indeed, in matters of this sort it should be the Prime Minister, presiding over a Ministerial Committee, who decides matters of such grave importance as this.

It would be wrong for the Lord President of the Council, however distinguished he may be, to decide himself. The decision should be that of a much higher authority. Among the powers given to the Lord President in the Bill, or among those given to him when we transferred to him the functions of the Ministry of Supply, there is not one word about allocating fissile material or products of the Atomic Energy Authority between one type of activity and another.

I hope that we shall not anticipate the general debate on the Question, "That the Clause stand part of the Bill," when I say that Clause 3 (1) specifically gives to the Lord President the power to determine the proper degrees of importance attached to the various applications of atomic energy.

Perhaps my right hon. Friend will also consider the fact that Clause 2 lists the functions which are to be transferred to the public Authority and specifically excludes the manufacture of weapons.

Of course the manufacture of weapons will be transferred to the new Authority.

Yes. The hon. Member for Kidderminster (Mr. Nabarro) has a good point. When I said that this did not appear in the Bill I was wrong. What I meant to say, and what I say now, is that the decision will inevitably be that of the Prime Minister, or it should be. The Lord President will be the Minister who will carry out decisions which have been reached at the highest Ministerial level.

There seems to be considerable confusion about allocation and deciding how much should go to military and peacetime purposes. I say straight away that if we thought that our Amendment meant that there would be any greater emphasis on warlike rather than peaceful purposes, we should not press it; but we do not believe that that would happen. There is a dangerous fallacy which arises from the inability of some hon. Members to dissociate questions of allocation from those of production, research and development.

We want the Minister of Supply to appoint the members of this Authority and to be generally responsible for the welfare and conduct of this body. The main purpose of the Authority will be to conduct research and development in atomic material and to be responsible for the production of fissile material and to do all those things which go with it.

How can he have that when the financial responsibility must be that of the Lord President?

We should prefer that the Lord President did not have financial responsibility, but we have to accept that.

Nevertheless, the people who appoint the members of the Authority will be in a very strong position to influence the policy of the Authority, to help it in its work and to give it guidance and experience. We say that the Authority whose job it is to conduct research and development and to produce fissile material would be far better placed under the authority of the Minister of Supply than under that of the Lord President.

The reasons have been given over and over again, and I do not want to repeat them except in summary. The success of the atomic energy project up to now has been the result of the active work of a number of brilliant people-together with the keenness and enthusiasm of thousands of people—under the organisation of the Ministry of Supply. We know what the Government themselves have said about the extraordinary success of that organisation and how its achievements are greater than or equal to those secured by industry. The document published by the Government, after talking about the building of the factories and establishments under the Ministry of Supply, said that it was "an achievement that would stand comparison with any other in the history of British industry."

That achievement arises from the fact that the atomic energy project has been closely associated with a large Government Department which has great knowledge of the engineering industry and is closely involved with it. If we separate the atomic energy project from the help and assistance of the Ministry of Supply we shall weaken and not strengthen it.

In the Amendment we seek to bring the project as closely as possible into its old association with the Ministry of Supply. We believe that that will be healthy and desirable. The problem we have to consider is not that of deciding who is to allocate anything or whether it is to be allocated for peaceful or warlike purposes; the problem is under what conditions both peaceful and warlike developments of atomic energy are likely to be best advantaged.

5.30 p.m.

We have two definite streams of research, one for the purposes of war and one for the purposes of peace. Surely it would be much better to have the two streams than to have one?

That brings me to the second point, which has been made by my hon. Friends. I do not want to repeat the argument except in a sentence. The Minister of Supply is already in the picture to such a large extent in production and research that we say he ought to be solely responsible. I would remind the Committee of the words in the White Paper on this point, where it is stated:

It is for these reasons that we believe it is desirable that the Ministry of Supply should come in and that a grave mistake was made in separating the atomic energy project from his organisation. It was a mistake which, we feel, was largely based on prejudice against all Government activity—

An hon. Member opposite agrees with me—and largely based on the view that Government servants cannot do what industrialists can do, or in any case cannot do it so well. That is a point of view we do not accept and which I am certain the Minister of Supply could not accept in regard to the functions over which he has control. But that policy, based on political prejudice, has been incorporated in this Bill and we cannot do more than try to amend and improve it.

Moreover, as several of my hon. Friends have said, we believe it is wholly wrong, under any circumstances, that the man responsible for this important work and upon which the prosperity of the country may depend should at any time be in the House of Lords—[HON. MEMBERS: "Oh."] It is true that the office of Lord President of the Council can be moved to this House as was suggested by my hon. Friend the Member for Nelson and Colne, but the present proposal is that in the early and important period of the Authority's existence—we do not know how long the Government will last—this man will be in the House of Lords.

We object to that and think it is wrong; and that is an additional reason why we support this Amendment. We regret, but are not surprised, that the Government have not accepted it. We lay such emphasis upon it that we propose to divide the Committee.

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

The Committee divided: Ayes, 246; Noes, 226.

Division No. 51.]

AYES

[5.33 p.m.

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

George, Rt. Hon. Maj. G. Lloyd

Morrison, John (Salisbury)

Alport, C. J. M.

Glover, D.

Mott-Radclyffe, C. E.

Amory, Rt. Hon. Heathcoat (Tiverton)

Gomme-Duncan, Col. A.

Nabarro, G. D. N.

Anstruther-Gray, Major W. J.

Gough, C. F. H.

Neave, Airey

Arbuthnot, John

Gower, H. R.

Nicholls, Harmar

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

Graham, Sir Fergus

Nicholson, Godfrey (Farnham)

Astor, Hon. J. J.

Grimond, J.

Nicolson, Nigel (Bournemouth, E.)

Baker, P. A. D.

Grimston, Hon. John (St. Albans)

Noble, Cmdr. A. H. P.

Baldock, Lt.-Cmdr. J. M.

Grimston, Sir Robert (Westbury)

Nutting, Anthony

Baldwin, A. E.

Hall, John (Wycombe)

Odey, G. W.

Banks, Col. C.

Harden, J. R. E.

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

Barber, Anthony

Hare, Hon. J. H.

Orr, Capt. L. P. S.

Beach, Maj. Hicks

Harris, Frederic (Croydon, N.)

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

Bell, Philip (Bolton, E.)

Harris, Reader (Heston)

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

Bell, Ronald (Bucks, S.)

Harrison, Col. J. H. (Eye)

Page, R. G.

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

Harvie-Watt, Sir George

Peake, Rt. Hon. O.

Bennett, Dr. Reginald (Gosport)

Hay, John

Perkins, Sir Robert

Bennett, William (Woodside)

Heald, Rt. Hon. Sir Lionel

Peto, Brig. C. H. M.

Bevins, J. R. (Toxteth)

Heath, Edward

Peyton, J. W. W.

Bishop, F. P.

Higgs, J. M. C.

Pickthorn, K. W. M.

Boothby, Sir R. J. G.

Hill, Dr. Charles (Luton)

Pilkington, Capt. R. A.

Bossom, Sir A. C.

Hill, Mrs. E. (Wythenshawe)

Pitman, I. J.

Boyle, Sir Edward

Hinchingbrooke, Viscount

Pitt, Miss E. M.

Braine, B. R.

Hirst, Geoffrey

Powell, J. Enoch

Braithwaite, Sir Albert (Harrow, W.)

Holland-Martin, C. J.

Price, Henry (Lewisham, W.)

Braithwaite, Sir Gurney

Holt, A. F.

Prior-Palmer, Brig. O. L.

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

Hope, Lord John

Profumo, J. D.

Brooke, Henry (Hampstead)

Horobin, I. M.

Raikes, Sir Victor

Broomam-White, R. C.

Horsbrugh, Rt. Hon. Florence

Ramsden, J. E.

Browne, Jack (Govan)

Howard, Hon. Greville (St. Ives)

Redmayne, M.

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

Hudson, Sir Austin (Lewisham, N)

Rees-Davies, W. R.

Bullard, D. G.

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

Remnant, Hon. P.

Bullus, Wing Commander E. E.

Hulbert, Wing Cdr. N. J.

Ridsdale, J. E.

Butcher, Sir Herbert

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

Roberts, Peter (Heeley)

Campbell, Sir David

Hyde, Lt.-Col. H. M.

Robinson, Roland (Blackpool, S.)

Carr, Robert

Iremonger, T. L.

Robson Brown, W.

Cary, Sir Robert

Jenkins, Robert (Dulwich)

Rodgers, John (Sevenoaks)

Channon, H.

Jennings, Sir Roland

Roper, Sir Harold

Churchill, Rt. Hon. Sir Winston

Johnson, Eric (Blackley)

Ropner, Col. Sir Leonard

Clarke, Col. Ralph (East Grinstead)

Johnson, Howard (Kemptown)

Ryder, Capt. R. E. D.

Clarke, Brig. Terence (Portsmouth, W.)

Jones, A. (Hall Green)

Sandys, Rt. Hon. D.

Clyde, Rt. Hon. J. L.

Kaberry, D.

Schofield, Lt.-Col. W.

Cole, Norman

Kerby, Capt. H. B.

Scott, R. Donald

Colegate, W. A.

Kerr, H. W.

Scott-Miller, Cmdr. R.

Conant, Maj. R. J. E.

Lambert, Hon. G.

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

Craddock, Beresford (Spelthorne)

Lambton, Viscount

Smithers, Sir Waldron (Orpington)

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

Langford-Holt, J. A.

Smyth, Brig. J. G. (Norwood)

Crosthwaite-Eyre, Col. O. E.

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

Soames, Capt. C.

Crouch, R. F.

Legh, Hon. Peter (Petersfield)

Spearman, A. C. M

Crowder, Sir John (Finchley)

Lindsay, Martin

Speir, R. M.

Crowder, Petre (Ruislip—Northwood)

Llewellyn, D. T.

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

Darling, Sir William (Edinburgh, S.)

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

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

Davidson, Viscountess

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

Stanley, Capt. Hon. Richard

Davies, Rt. Hn. Clement (Montgomery)

Lockwood, Lt.-Col. J C.

Stevens, G. P.

Deedes, W. F.

Longden, Gilbert

Stoddart-Scott, Col. M.

Dodds-Parker, A. D.

Low, A. R. W.

Storey, S.

Donaldson, Cmdr. C. E. McA.

Lucas, Sir Jocelyn (Portsmouth, S.)

Strauss, Henry (Norwich, S.)

Donner, Sir P. W.

Lucas, P. B. (Brentford)

Stuart, Rt. Hon. James (Moray)

Doughty, C. J. A

Lucas-Tooth, Sir Hugh

Studholme, H. G

Drayson, G. B.

McAdden, S. J.

Summers, G. S.

Drewe, Sir C.

McCorquodale, Rt. Hon. M. S.

Sutcliffe, Sir Harold

Duncan, Capt. J. A. L.

Macdonald, Sir Peter

Taylor, William (Bradford, N.)

Duthie, W. S.

McKibbin, A. J.

Teeling, W.

Eccles, Rt. Hon. Sir D. M.

Mackie, J. H. (Galloway)

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

Eden, J. B. (Bournemouth, West)

Maclean, Fitzroy

Thomas, Leslie (Canterbury)

Erroll, F. J.

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

Thomas, P. J. M. (Conway)

Finlay, Graeme

MacLeod, John (Ross and Cromarty)

Thompson, Kenneth (Walton)

Fisher, Nigel

Macpherson, Niall (Dumfries)

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

Fleetwood-Hesketh, R. F.

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

Thorneycroft, Rt. Hn. Peter (Monmouth)

Fletcher, Sir Walter (Bury)

Maitland, Patrick (Lanark)

Thornton-Kemsley, Col. C. N.

Fletcher-Cooke, C.

Manningham-Buller, Sir R. E.

Tilney, John

Ford, Mrs. Patricia

Markham, Major Sir Frank

Touche, Sir Gordon

Foster, John

Marshall, Douglas (Bodmin)

Turner, H. F. L.

Fyfe, Rt. Hon. Sir David Maxwell

Maude, Angus

Turton, R. H.

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

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

Tweedsmuir, Lady

Galbraith, T. G. D. (Hillhead)

Medlicott, Brig. F

Vane, W. M. F.

Gammans, L. D.

Mellor, Sir John

Vaughan-Morgan, J. K.

Garner-Evans, E. H.

Moore, Sir Thomas

Vosper, D. F.

Wade, D. W.

Waterhouse, Capt. Rt. Hon. C.

Williams, R. Dudley (Exeter)

Wakefield, Edward (Derbyshire, W.)

Webbe, Sir H. (London & Westminster)

Wilson, Geoffrey (Truro)

Walker-Smith, D. C.

Wellwood, W.

TELLERS FOR THE AYES:

Ward, Hon. George (Worcester)

Williams, Rt. Hon. Charles (Torquay)

Mr. Oakshott and Mr. Wills.

Ward, Miss I. (Tynemouth)

Williams, Paul (Sunderland, S.)

NOES

Albu, A. H.

Hall, John T. (Gateshead, W.)

Parker, J.

Allen, Arthur (Bosworth)

Hamilton, W. W.

Parkin, B. T.

Anderson, Frank (Whitehaven)

Hannan, W.

Pearson, A.

Attlee, Rt. Hon. C. R.

Hardy, E. A.

Peart, T. F.

Awbery, S. S.

Hargreaves, A.

Plummer, Sir Leslie

Bacon, Miss Alice

Harrison, J. (Nottingham, E.)

Popplewell, E.

Balfour, A.

Hastings, S.

Porter, G.

Barnes, Rt. Hon. A. J.

Hayman, F. H.

Price, J. T. (Westhoughton)

Bartley, P.

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

Proctor, W. T.

Bellenger, Rt. Hon. F. J.

Herbison, Miss M.

Pryde, D. J.

Bence, C. R.

Hewitson, Capt. M.

Pursey, Cmdr. H.

Benn, Hon. Wedgwood

Hobson, C. R.

Rankin, John

Benson, G.

Holman, P.

Reeves, J.

Beswick, F.

Holmes, Horace

Reid, Thomas (Swindon)

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

Houghton, Douglas

Reid, William (Camlachie)

Blackburn, F.

Hoy, J. H.

Rhodes, H.

Blenkinsop, A.

Hubbard, T. F.

Robens, Rt. Hon. A.

Blyton, W. R.

Hudson, James (Ealing, N)

Roberts, Albert (Normanton)

Boardman, H.

Hughes, Cledwyn (Anglesey)

Robinson, Kenneth (St. Pancras, N.)

Bowden, H. W.

Hughes, Emrys (S. Ayrshire)

Rogers, George (Kensington, N.)

Bowles, F. G.

Hughes, Hector (Aberdeen, N.)

Ross, William

Braddock, Mrs. Elizabeth

Hynd, H. (Accrington)

Royle, C.

Brockway, A. F.

Hynd, J. B. (Attercliffe)

Shackleton, E. A. A.

Brook, Dryden (Halifax)

Irving, W. J. (Wood Green)

Shinwell, Rt. Hon. E.

Broughton, Dr. A. D. D.

Isaacs, Rt. Hon. G. A.

Short, E. W.

Brown, Rt. Hon. George (Belper)

Jay, Rt. Hon. D. P. T.

Silverman, Julius (Erdington)

Brown, Thomas (Ince)

Jeger, George (Goole)

Skeffington, A. M.

Burton, Miss F. E.

Jeger, Mrs. Lena

Slater, J. (Durham, Sedgefield)

Butler, Herbert (Hackney, S.)

Jenkins, R. H. (Stechford)

Smith, Norman (Nottingham, S.)

Callaghan, L. J.

Johnson, James (Rugby)

Sorensen, R. W.

Carmichael, J.

Johnston, Douglas (Paisley)

Soskice, Rt. Hon. Sir Frank

Castle, Mrs. B. A.

Jones, David (Hartlepool)

Sparks, J. A.

Champion, A. J.

Jones, Jack (Rotherham)

Steele, T.

Chapman, W. D.

Keenan, W.

Stewart, Michael (Fulham, E.)

Chetwynd, G. R.

Key, Rt. Hon. C. W.

Strauss, Rt. Hon. George (Vauxhall)

Clunie, J.

Lee, Frederick (Newton)

Summerskill, Rt. Hon. E.

Coldrick, W.

Lever, Leslie (Ardwick)

Sylvester, G. 0.

Collick, P. H.

Lewis, Arthur

Taylor, Bernard (Mansfield)

Corbet, Mrs. Freda

Lindgren, G. S.

Taylor, Rt. Hon. Robert (Morpeth)

Cove, W. G.

Lipton, Lt.-Col. M.

Thomas, George (Cardiff)

Craddock, George (Bradford, S.)

Logan, D. G.

Thomas, Iorwerth (Rhondda, W.)

Crosland, C. A. R.

MacColl, J. E.

Thomas, Ivor Owen (Wrekin)

Crossman, R. H. S.

McGhee, H. G.

Thomson, George (Dundee, E.)

Cullan, Mrs. A.

McGovern, J.

Thornton, E.

Daines, P.

McInnes, J.

Timmons, J.

Darling, George (Hillsborough)

McKay, John (Wallsend)

Turner-Samuels, M.

Davies, Ernest (Enfield, E.)

McLeavy, F.

Ungoed-Thomas, Sir Lynn

Davies, Stephen (Merthyr)

MacPherson, Malcolm (Stirling)

Usborne, H. C.

de Freitas, Geoffrey

Mallalieu, E. L. (Brigg)

Viant, S. P.

Delargy, H. J.

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

Warbey, W. N.

Dodds, N. N.

Mann, Mrs. Jean

Watkins, T. E.

Donnelly, D. L.

Manuel, A. C.

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

Driberg, T. E. N.

Marquand, Rt. Hon. H. A

Weitzman, D.

Ede, Rt. Hon. J. C.

Mason, Roy

Wells, Percy (Faversham)

Edelman, M.

Mellish, R. J.

Wells, William (Walsall)

Edwards, Rt. Hon. John (Brighouse)

Messer, Sir F.

West, D. G.

Edwards, Rt. Hon. Ness (Caerphilly)

Mikardo, Ian

White, Mrs. Eirene (E. Flint)

Edwards, W. J. (Stepney)

Mitchison, G. R.

Whiteley, Rt. Hon. W

Evans, Albert (Islington, S.W.)

Moody, A. S.

Willey, F T

Evans, Edward (Lowestoft)

Morgan, Dr. H. B. W.

Williams, David (Neath)

Evans, Stanley (Wednesbury)

Morley, R.

Williams, Rev. Llywelyn (Abertillery)

Fernyhough, E.

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

Williams, Ronald (Wigan)

Fienburgh, W.

Mort, D. L.

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

Finch, H. J.

Moyle, A.

Williams, W. R. (Droylsden)

Fletcher, Eric (Islington, E.)

Mulley, F. W

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

Follick, M.

Neal, Harold (Bolsover)

Wilson, Rt. Hon. Harold (Huyton)

Foot, M. M.

Noel-Baker, Rt. Hon. P. J

Winterbottom, Ian (Nottingham, C.)

Forman, J. C.

Oldheld, W. H.

Winterbottom, Richard (Brightside)

Freeman, Peter (Newport)

Oliver, G. H.

Woodburn, Rt. Hon. A.

Gibson, C. W.

Orbach, M.

Wyatt, W. L.

Gooch, E. G.

Oswald, T.

Yates, V. F.

Greenwood, Anthony (Rossendale)

Padley, W. E.

Younger, Rt. Hon. K.

Grenfell, Rt. Hon. D. R.

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

TELLERS FOR THE NOES:

Grey, C. F.

Paling, Will T. (Dewsbury)

Mr. Wallace and

Griffiths, David (Rother Valley)

Palmer, A. M. F.

Mr. John Taylor

Griffiths, Rt. Hon. James (Llanelly)

Panned, Charles

Hall, Rt. Hon. Glenvil (Colne Valley)

Pargiter, G. A.

I beg to move, in page 2, line 7, at the end, to insert:

When we were dealing with the last Amendment and the Minister said that we must wait and see if any strange thing happened to the other two Amendments we have on the Order Paper, I hope he was not indicating that it would be a strange thing if anyone on the Authority had experience and knowledge of the organisation of the workers. It seems to me, for various reasons, that the personnel side, the staff problems, will be one of the most important of the responsibilities facing those individuals whom it is proposed to appoint to the Authority.

5.45 p.m.

I have mentioned one special reason for that, this wretched business of security with which the industry is beggared or handicapped. It is most essential in this matter that we have someone on the Authority who has some special knowledge of staff and personnel problems and the organisation of the workers. Moreover, as we have been told that many of the senior executives, and indeed members of the Authority possibly, will be brilliant men pursuing a comparatively narrow objective with a single-minded enthusiasm, I can see that these individuals, admirable as they are in their respective fields, may well be in need of some guidance in personnel matters.

The staff of this Authority will undoubtedly grow in numbers. I do not know what are the numbers, but they may be considerable, and we should be quite certain that the scientists and their assistants, the industrial workers and clerical staffs in this remarkable indus- try will be recognised as being men and women and not robots. It seems to me that a person of the type we have in mind can make a most significant contribution to the success of the Authority and I hope that this Amendment will be accepted.

This Amendment, which deals with the question of having an expert in labour relations on the Authority, is obviously of extreme importance. I can hardly believe that any Amendment can be more desirable. In fact, I am amazed that, since a provision of this kind has been included in the Acts establishing all the public corporations in recent years, it has been left out on this occasion.

As was said by my hon. Friend the Member for Uxbridge (Mr. Beswick), this Atomic Energy Authority, when it is established—if Parliament makes the mistake of passing this Bill—will be a tremendous employer of labour, of manual employees, technical and technological engineers, and scientific employees. We have never been told just how many people are involved, and probably there are reasons for that. But it is self-evident that already a considerable number is employed and that the number will increase as development takes place. Yet here, where we are to have so many preoccupied scientific gentlemen on the Authority, there is not one who is an expert in labour relations.

In the other nationalised industries—I think it fair to say that this may be described adequately as a nationalised industry—similar appointments have been made over the years. I believe that only men have been appointed so far. In the main, they are people experienced in labour relations. Usually they are ex-trade union officials with great experience in the world of industry, particularly on the trade union side. They have known a great deal about collective bargaining and all those other matters that so intimately concern employees in this country today. If it is necessary to have experts in finance and commerce, it is equally necessary to have an expert in labour relations.

We do not suggest that he or she should be the head of a labour relations department. It is not necessary for the person appointed to fulfill some particular function within the organisation. I do not need to quote to the Committee the reference from HANSARD, but I was rather startled on Second Reading when the Minister, in objecting to this proposal in advance, said that the Government did not want to have special interests represented.

Nobody was asking for a special interest to be represented. What we are asking is that the man with this kind of experience shall be able to put his experience into the common pool provided by the other members of this Authority. I hope the right hon. Gentleman will not try to ride off the point by saying, "We do not want to have representatives of special interests." Already people with scientific and technical training are going to be well represented, and that strengthens the case we are putting forward for having a man who will bring to the Authority the experience of labour relations.

There is no need to argue that there are no precedents. There have been excellent precedents over the last few years. Trade union officials in many cases have gone on public boards, having severed direct connection with their organisations. In nearly every case it can be said that they have been outstanding successes; at any rate, I have never heard it suggested from the other side of the Committee that they have not been a success.

Finally, I can say that this Amendment is favoured by the trade union movement, and by the General Council of the T.U.C. Therefore, I hope the Minister will think again on this point and rectify what I regard as a most serious omission in the Bill.

I take the view that the proposal put forward in this Amendment is sound, and I think that hon. Members on both sides of the Committee will agree, as has been said on several occasions, that this industry is clearly becoming one which has special safety and welfare problems for the ordinary workers. That, in my view, is a strong argument for having someone experienced in labour relations as part of the Authority.

One of the reasons why it would be a great advantage is the fact that, in the making of atomic weapons, safety precautions are required which will need specialised knowledge of atomics. It would be particularly useful to have such a person closely concerned with the organisation, particularly when atomic workers are to be seconded from the Civil Service to the Authority. There will be all sorts of problems to be solved of particular concern to such people as, for instance, houses, which we discussed on the Second Reading of the Bill, and the problems arising from the transfer of staff.

Therefore, I think the proposal to have a person who is officially concerned with labour relations and an expert in such matters will be an advantage and an important part of the machinery. In common with hon. Members opposite, I suggest that the Minister should look into this matter and sympathetically consider it on behalf of the staffs.

I may be regarded as an intruder in a debate on atomic energy, but I certainly am no intruder when it comes to the question of labour relations and the effective use of people of experience on boards of this type. In my opinion the Minister will be making a very grave mistake if he fails to make room for a person of this type and I will give him some of my reasons for so thinking.

I am not an atomic expert, but I know something about the conditions of working in other industries. As I see it, atomic energy will be a continuous process. Atomic piles cannot be closed down at the week-end or for bank holidays and suchlike. It has to be a continuous process, and that will create an enormous number of new problems. This could be a set-up of brains and no common sense, and under those conditions it is not likely to succeed. In an organisation where a high priority is given to people with specialised knowledge but with no experience of productive work, little progress can be made.

It would be fatal for the interests of this country if the Minister were to set up an organisation which failed to take into account the experience of a labour relations officer. I am hoping that the Minister will listen to one who has had some considerable experience in an industry which has probably the best relations' record in the world. I can tell him quite bluntly and plainly that if he wants to make a success of this scheme—and we all hope it will be a success, because any Government will need to make a success of it—he must of necessity take into account the cumulative evidence which can be supplied to a board of this type by those experienced in labour relations.

As a general principle, I am opposed to the membership of these authorities being completed on the basis of functional and sectional interests. On the other hand, it seems to me that experience in labour organisations is as fundamental a part of good management as administration and finance. We had to make provision for the representation of the latter functions in the composition of the Authority, and, therefore, it is expedient to make provision for the former function of experience in labour organisation. Like the hon. Member for Rotherham (Mr. Jack Jones), I think that is all the more so because this is a new and expanding industry, and we shall probably face fresh but as yet unknown problems affecting conditions, welfare and the health of the workers. Therefore, I hope my right hon. Friend will see his way to accept this Amendment.

6.0 p.m.

I said on Second Reading that the Government were still considering the membership of the Authority. We have, of course, looked at the nationalisation Acts, and there seems to be a difference in magnitude between the atomic energy project and the nationalised industries. For instance, there are 700,000 industrial workers in coal, 125,000 in the electricity industry, and 110,000 in the gas industry.

The number of industrial workers employed on atomic energy is less than 10,000, and is therefore of a different order of magnitude. I agree, however, that, certainly in the world of art, a small picture may be of better quality than a large one, and I do not think that size need necessarily be the determining factor.

I have listened to what has been said from both sides of the Committee, and I agree with the hon. Member for Rotherham (Mr. Jack Jones) that of all processes this is one which we cannot turn on and off. I can understand that, at the outset particularly, there will be a number of problems. What the Government were considering was whether there would be a job for such a member of the Authority when the scale was rather on the small side. We have not yet decided whether the additional members of the Authority are to be whole-time or part-time, and we are still thinking about that.

We are, however, ready to accept this Amendment, because we believe that it will be of advantage to the Authority and that we can, without difficulty, find a person skilled in labour relations who will also have as good a general view of the conduct of the Authority as anyone else. However, the Government would deplore the idea that the member who was selected for his experience in labour relations was not there for anything else. I was interested to hear the hon. Member for Cleveland (Mr. Palmer) refer to such a member as "he or she." We believe that such a member will be an advantage, and I am pleased to accept the Amendment.

I am glad that the Minister has been able to accept this Amendment. I do not want to be ungracious, but I must tell him that we on this side of the Committee were profoundly shocked when we first read the Bill land found that this Authority was to be set up which, in principle, is exactly the same as all the other boards and corporations set up to deal with the various nationalised industries, but that for the first time there was no mention of someone on the Authority who was skilled and experienced and had shown capacity in the organisation of workers.

We could not understand it. To depart from precedent in that way seemed to us puzzling. The fact that in this case there are only 10,000 people—which is still a considerable number—while in some of the other cases there are many hundreds of thousands is not sufficient excuse. However, the Government have now said that they have thought again, as they promised to do on Second Reading, and no doubt the views of a number of bodies, including the T.U.C., have been made known to the Government.

I am sure that this Authority will have a better chance of working successfully if there is someone on it who, from experience, understands the reactions and the outlook of those working in the industry and who will give them a feeling of participation. Therefore I am glad that the Minister has agreed to accept this Amendment, and if I carp at him for not having put such a proposal into the Bill originally, it does not detract from the satisfaction of my colleagues who moved this Amendment that the proposal has now been accepted.

Amendment agreed to.

I beg to move, in page 2, line 7, at the end, to insert:

The Amendment proposes, because of the leading part that electricity supply will necessarily play in the utilisation of nuclear energy, that this part should be recognised in the Statute. And not only should it be recognised, but that it should be recognised at the highest level. I am sure that the Parliamentary Secretary to the Ministry of Fuel and Power will note with interest our proposal that his right hon. Friend should be consulted on the appointment. That is a logical suggestion, because he is the Minister of Fuel and Power and this deals with power, and with the important use of the new source of energy that we are now developing.

I do not know if there are any present today on the other side of the Committee who belittle the Ministry of Fuel and Power. I do not, and I have said a good word about it in the past. I think it is an important and necessary Ministry, and I hope that the hon. Member for Kidderminster does not regard it as a candidate for his axe. If he did so, he would be rather contradicting the outlook of the Ridley Report, which thought it necessary that this Ministry should carry out its co-ordinating functions with even more energy in the future than it has done in the past.

We believe that when an appointment is made of an expert in the business of electricity generation and supply, the Minister making the appointment should consult his colleague the Minister of Fuel and Power. I would go further and suggest that it might even be a dual appointment between the British Electricity Authority and the new atomic authority. On Second Reading I took a point of view which was very much my own, that it was not necessary to have this Authority and that the electrical power functions of nuclear energy could go immediately and directly to the British Electricity Authority. I do not know that the B.E.A. wants them at this stage, but it would be a sound principle, and therefore it is reasonable that I should suggest now that it might be a dual appointment but it is a suggestion only and not in the Amendment.

Apparently there are differences of opinion in the country, even among the experts, on the timing of the development of electrical power supply from atomic or nuclear energy. There is an extraordinarily cautious outlook in the White Paper which says: I am backed in that view by what was said to the Parliamentary and Scientific Committee by Sir John Cockcroft who was speaking of the time interval required before the production of electrical energy from nuclear power becomes the order of the day. He said:

On a point of order. As I hope to catch your eye later, Sir Rhys, may I draw your attention to the fact that the hon. Member has so far been dwelling on the very interesting and scintillating possibilities of the application of atomic energy to the production of electricity and to the question of how soon that is likely to take place. Surely the Amendment deals only with the appointment of certain persons to the Authority.

The hon. Member for Cleveland (Mr. Palmer) was arguing that the nature of the scientific development made it necessary or desirable to consult the Ministry of Fuel and Power.

I am not troubled about this, Sir Rhys. I am happy to be in your hands and not in the hands of the hon. Member for Kidderminster (Mr. Nabarro). I am certain that if I am wrong you will put me right. Until then, I shall continue.

My point is that this development has such a bearing on the work of the Ministry of Fuel and Power that it would be especially useful to have such a gentleman as we propose as a member of the Authority, in contrast to the purely scientific gentlemen who are to serve on it. I could quote the Lord President of the Council who has stated in another place that the British Electricity Authority is to be the chief beneficiary from the developments at Calder Hill and Caithness in Scotland, that it will be necessary to secure collaboration between the Atomic Energy Authority and the British Electricity Authority, that there must be mutual aid, and phrases of that kind. Would it not advance mutual aid if there were an expert on these matters serving directly on the Authority?

If I did not wish not to weary the hon. Member for Kidderminster, I could quote from the supplement on the electricity industry recently published by the "Financial Times." The hon. Member knows all about it because he was a distinguished although somewhat eccentric contributor to that supplement. There is an article in it discussing many of the joint problems that will arise between the Atomic Energy Authority and the British Electricity Authority. I could mention other opinions that come to mind on the subject of the siting of atomic reactors and so on. These are immediate and practical problems. It is proposed that the new Authority shall do experimental work and matters will then arise which will be of great interest to electrical engineers, for they are the people who have had the necessary experience. I should have thought, therefore, that the case for putting a man with that kind of experience on the Authority was doubly strengthened.

6.15 p.m.

Expert opinion seems to be that atomic energy can redress the power shortage in this country in 10 or 15 years. That is my impression after summing up the expert evidence. As the price of nuclear energy comes down it is likely that the price of energy developed by conventional methods will go up. I appreciate that it may be used as an argument against our Amendment that there are other uses of atomic energy, medical, biological and chemical and for ship propulsion, but it cannot be doubted that the use of nuclear energy for the peaceful production of electric power is certainly one of primary interest.

The argument has been used to me in private conversation that if we put an electricity expert on the Authority he will tend to retard the development of atomic power stations because he will see them as competitors of the conventional type. My answer is that obviously he will be very heavily out-gunned. He will be only one, and the other people on the Authority will be many. I hope that I have proved the case for this Amendment to the satisfaction of the Committee. I have certainly proved it to my own satisfaction. We regard this Amendment as extremely important. If the Government accept it they will demonstrate to the Committee and to the country that they propose to give a high priority to the peaceful industrial use of nuclear energy.

Nothing that I say in following the hon. Member for Cleveland (Mr. Palmer) should be taken in any way to suggest that I wish to confute, or comment unfavourably or adversely on his arguments about the supreme importance of devoting a first priority in atomic developments for peaceful and civil purposes to the generation of electric power. In fact, I devoted nearly the whole of a fairly long speech on Second Reading precisely to that issue.

Where I am directly in opposition to the views of the hon. Member is on the question whether it is desirable to create in a large measure what it would seem to me to be the result of his argument, a functional board with every member, other than the three members already appointed who have particular knowledge of atomic science, representing individual interests. If there is to be a person on the board representing expert opinion in the electrical generating industry it may equally well be argued that the National Health Service should be represented by a doctor. It might be equally argued that the agricultural services should be represented by a person well versed in scientific matters within the field of agriculture. It might equally well be argued that transport interests should be represented by particular appointments to the Authority.

Nothing in my speech suggested that there should be specific representation. I wanted that kind of experience to be thrown into the general pool of experience.

I must have misunderstood part of the hon. Member's speech, but it follows from what he said that he is anxious that electrical generating interests—

The hon. Member is anxious that electrical generating interests should find expression through one person particularly appointed to the Authority in view of his experience in electricity matters.

If that were the case, the Authority would be putting on its board a representative of its most important potential customer. It is obvious that within the course of a few years electricity will be the principal source of revenue for the Authority. I am one of those who believe that it is a bad thing to put one's customer on the board of one's company—[HON. MEMBERS: "Why"?] Because it is not always judicial or desirable that one's customer should know all one's business.

While it would be digressing somewhat to discuss the amount of the commercial matter in the affairs of the other nationalised industries which is divulged from time to time in the form of their annual reports, it is undoubtedly a fact that a great deal of commercial matter is never so divulged. I believe that it would be a serious mistake to invite the appointment to the board of the Authority of a representative of its principal potential customer, which, in effect, is what the Amendment suggests.

If that were a valid principle, might I inquire why hon. Gentlemen opposite in framing the Coal Nationalisation Act in 1947 did not think it desirable to have arrangements whereby representatives of the principal customers of the National Coal Board should be given appointments to the Board? [HON. MEMBERS: "What about consumers' councils"?] Do not talk about consumers' councils. The principal customer of the National Coal Board is the British Electricity Authority, which buys 35 million tons of coal per year. Does the British Electricity Authority have a representative on the National Coal Board? Of course not. The Coal Board does not believe in the principle of inviting its main customers to be represented on the Board.

Does the Coal Board invite the gas industry, which buys 27 million tons of coal per year and is another of its principal customers, to have a representative on the Board? Does the Coal Board invite the Transport Commission to have a representative on its Board because the Commission is one of its principal customers? In my view, there is no precedent at all for a largely autonomous or statutory corporation inviting one or more of its principal potential customers to take a seat on its board or appoint a representative to its board.

Where is there a reference to the appointment of any such representative?

I am not sure that the hon. Member was in his place throughout the speech of the hon. Member for Cleveland (Mr. Palmer). If he had been, and had listened carefully, he would have learned that the whole case for the Amendment rested upon the need for electrical generation interests to be represented on the board.

It would be a very grave mistake indeed to create a functional board outside the three or four atomic and nuclear science experts who have already been appointed to the board. I believe that the Lord President of the Council should fill the remaining places with people who have a broad, general and long experience of industrial and economic activity of every kind and who have by no means an emphasis upon one industry, important though the electrical generating industry is.

Nothing that was inherent in the concession made by my right hon. Friend on the previous Amendment in any way impinges on the principle that I am now enunciating. The person on the board representing the interests of those employed by the Authority is tantamount to a director of personnel who looks after purely staff matters of a domestic character within the Authority and in connection with staff wage and salary negotiations. That is not a functional matter. If we conceded the Amendment, it would be a functional matter. I hope that the Amendment will be resisted.

Surely the hon. Member has misread the Amendment. It is not suggested that there shall be representatives of the industry. It is merely emphasised that the persons concerned shall have wide experience of the industry, which is a different point of view. The hon. Member is twisting the argument.

There is no twisting of what was said in the previous speech. The case which was made for long experience connotes representation of a sectional interest.

If I follow the hon. Member for Kidderminster (Mr. Nabarro) correctly, one of his arguments was that a representative from the electrical generating industry would be able to see inside the workings of the Authority from which his industry might ultimately have to buy a good deal of its fuel. The interesting point was that it was suggested—the type of mind is exemplified by the hon. Member for Kidderminster—that some twisting would be going on. This is a typical example of the private enterprise mind, for it has the idea that industry is a matter of one concern trying to do down another concern. What the Opposition have in mind is that one great national industry or enterprise may well have something to contribute to another. That is the general conception with which we are dealing.

My impression of the Amendment is that it does not necessarily follow that a member of the board of the British Electricity Authority is to sit upon the Authority. We consider that a person of knowledge and experience of the electrical generating industry would bring a very useful mind to bear upon the deliberations of the Authority when it is discussing matters of day-to-day administration or some of the longer-term matters of policy with which it will be concerned.

The hon. Member for Kidderminster said at great length and with great vehemence, confusing volume with accuracy, that he was against functionalism on the board and was against the appointment of people to represent sectional interests. Yet he has already agreed to appointments giving representation to three sectional interests. It is already very largely a sectional board.

I am sure that the hon. Member would be fair-minded enough to concede that the three appointments already made are of persons of a quite irreplaceable scientific character in our nation, that there is nobody alive in Britain today, or probably elsewhere in the world, who could replace them.

The fact that they happen to represent sectional interests extremely well does not controvert my argument that there are three functional executives on the board. The Minister of Works earlier described the board as very largely a board of managers of functional interests. Therefore, if we are to have a board verging towards the functional at all, it is important to have someone who can argue with it on its own terms and who will be able to pick holes in the arguments put forward at board or executive meetings.

I make the further point that, when we talk of consumers being represented, we should remember that if there is one person qualified—[ Interruption. ] The hon. Member for Kidderminster is a specialist in words, and if he wishes to tell me that there is no difference between customer and consumer, I will accept his definition. The point I am making here is that the whole point and purpose of the Authority is to serve some customers or consumers, and, if one of them were to sit advantageously on the board, I should imagine that it would be a very useful appointment indeed.

6.30 p.m.

I am hoping that, either on the Question, "That the Clause stand part of the Bill," or on some other occasion, the Minister of Works will indicate that he has decided to accept the first Amendment to increase the minimum number from six persons to seven, because, now that one of our Amendments has been accepted, we shall, clearly, need more than six people on this Authority. The right hon. Gentleman is faced with some difficulty in finding people for these appointments, and I would put this to him. As I envisage the position, there will be control by the Lord President of the Council, who will be a spare-time amateur in these matters, and it will be extremely difficult to exercise that control.

In most producing industries, with comparatively few statistics it is possible to watch very closely the progress of the industry, but how anyone sitting in Whitehall will be able to follow the efficiency of this industry is difficult to see. That person will have to take a much closer interest in these matters than is envisaged under this plan, under which the Lord President of the Council will be sitting in a rather strange sort of Department, without adequate staff to advise him.

I should have thought that a man with some experience in electrical generation—the type of mind which has its attractions for the hon. Member for Kidderminster—and having experience of the sort of problem likely to be encountered by the Authority, is required to sit around a table and take a very close interest in the affairs of the Authority. If the Minister has to look round to find two or three people for these appointments, I should have thought that he could do much worse—indeed, I doubt whether he can do any better—than to seek to fill one of these appointments from among people who have had some experience in the generation of electric power.

I therefore hope that he will see his way to follow the excellent example which he set himself a little while ago, and accept this Amendment.

This proposal differs from the last one, because the member who represents labour relations will be part of the working of the Authority as a whole and will be concerned with it over the whole range of the industrial side. The argument for the member representing and having experience in electricity is rather different, because there it is a case of one of the uses of atomic energy for which it is sought to put a special member on the Board.

My noble Friend has a number of places to fill up, and he will select men of broad experience of different types which he thinks will be useful in the conduct of these affairs. If we were to put into the Bill a provision that any one of the different users had a statutory right to be considered for one of these posts, I think we should have to go on to include some of the other users which my hon. Friend the Member for Kidderminster (Mr. Nabarro) mentioned.

There come to mind the doctors, the agricultural users and the industrial users, and perhaps the Armed Services could also say that they should have someone representing them. In our judgment, that could mean that we might have too large an Authority for the best organisation of this business. Indeed, when one looks at the problem of electricity, one sees that there is one Authority for England and two Scottish authorities.

Perhaps, not yet; but I believe there is a proposal to have both a Highland and Lowland authority, so that there will be two authorities in Scotland, and that may be rather awkward. Suppose we had a representative of the English Authority. Experience has shown when we are building plant both in this part of the Kingdom and in the far North, that the people in the far North are fairly active in asking us for the same rights in matters of this kind.

Surely, if he had the choice, the Minister would have no doubt as to whom to appoint? It would be a Scotsman.

The intervention of the hon. Gentleman helps my case, because he says that, whatever else we did, we should have to have a Scotsman.

I should like the Committee to consider what it is that it is really necessary to do to further the relations between the electricity authorities and the Atomic Energy Authority in order to get the best possible co-operation in our advance towards this new form of power. At present, one of the staff of the B.E.A. has been at work at Harwell, and it is proposed—I think the invitation has already gone out—that B.E.A. should send teams of engineers to work with the industrial groups at Calder Hall and Risley. The important point is that reactor technology should be studied by those people who, under the arrangements we have already made with the British Electricity Authority, are to design, construct and operate reactors if Dounreay is a success.

It seems to us that the best thing which the Authority can do it to invite experts from the electricity authorities to come in now, and that was the purpose of my remarks which the hon. Member for Cleveland (Mr. Palmer) quoted. It is necessary to associate, as soon as pos- sible, these electricity experts with this particular section of the Authority's work, and we are determined to do that. The same will be done with the medical profession and with other types of industry, which will also have opportunities to learn about those processes which may be of interest to their particular forms of production.

I really do not think that it would be wise to single out the electricity industry and increase the membership of the Authority by the addition of a person having special knowledge of that industry, because it would be awkward to do it for the others, and we should get too large a Board. I do not think that the proposal would add to the efficiency of the organisation. I also believe that the co-operation that has gone on and still exists between the Authority and the British Electricity Authority will provide everything that is necessary to bring this great enterprise to success. I must, therefore, advise the Committee to reject this Amendment.

We are not at all satisfied with the right hon. Gentleman's answer, but the Amendment has provoked a most useful discussion. The right hon. Gentleman told us that arrangements are being made for extra people to be brought in, such as technologists. The answer is not satisfactory, but, in the circumstances, we do not propose to press the Amendment. I therefore beg to ask leave to withdraw the Amendment.

Amendment, by leave, withdrawn.

Motion made, and Question proposed, "That the Clause, as amended, stand part of the Bill."

One point arose in the discussion on the Amendment in the statement by the Minister, who said that he had not made up his mind whether members of the Authority should be part-time or whole-time. I do not know the views of my hon. Friends on this matter, but we agree that the Authority has to do its work well. We may have opposed its creation at the beginning, but now we must do what we can to make it work and, therefore, its members must be full-time.

The Authority will be engaged in the production of atomic energy. It will have to supervise research, carry out geologi- cal surveys and make arrangements with universities and other organisations for the conduct of research. It will have a full-time job to do, and I hope that the Minister will not be thinking in terms of half-time service for running this concern. One of my hon. Friends spoke of an amateur politician in another place running this organisation, but we have already expressed ourselves on that point. I hope that the members of the Authority will be full-time and that we shall give this matter its essential priority.

The field of atomic research is encroaching on other fields in every direction. To be sure of that, one has only to read the document to which I previously referred, the report for the year 1952–53 of the Department of Scientific and Industrial Research. In fuel and all branches of agriculture there are great possibilities. Moreover, there is the aspect of our relations with outside bodies. We have just concluded an arrangement to participate in a European organisation for research in this direction. There is a laboratory in Geneva to which we contribute, and which has been set up this year. I believe that our grants will reach approximately £300,000 annually for each of the next seven years.

The Authority will have a full-time job which I hope will be regarded as such. I hope that the Minister will not close his mind on this issue, although he has expressed uncertainty on the matter, and that he will convey to the Lord President of the Council the fact that this Committee believes that atomic energy should have first priority. That is why I believe that the Lord President should not be dealing with this matter. I would prefer a Cabinet Minister with full status, responsible to this House. Eventually, we shall have to have one. In the meantime I hope that the Authority will be full-time and that the members of it will co-operate well to get the wide experience of industrial matters that has been mentioned. Above all I hope that they will have, as I am certain they will, the national interest at heart.

While we have expressed our opposition to the arrangement for setting up the new Authority, we wish the Authority well. I hope that it will proceed well, and above all that it will be a full-time board. We must let it have that status which is so essential if the Authority is to do its work successfully.

6.45 p.m.

I should like to press the case against what has just been said by the hon. Member for Cleveland (Mr. Palmer) about full-time members of the board. We obviously all agree that this is a full-time job, but that does not necessarily mean that in the administration of the board its members will have to give full-time service. I will develop that point further a little later.

Has my right hon. Friend seriously considered the question of the minimum number of the board before we come to another stage of the proceedings on the Bill? I am not talking about the 10, which is the top limit, but about the six, which is the lower limit. Six might be taken as too small a number. The reason is that we have had experience in other nationalised industries with a similar setup, and on the whole it has been found that a number like six hampers the Minister too much.

The reason why I stress this point is that we seem already to be establishing three members who will be executive full-time members. I draw a distinction between full-time members and executive full-time members. There is a difference. One man who is doing an executive job inside the authority and is also on the board is an executive full-time member. There can be a full-time member who has no executive job. We seem to have three executive full-time members of the board.

As I understand, the chairman will virtually be an executive full-time member. If we stick to the number six, there will be a majority on the board of executive full-time members. Leaving out the argument whether full-time or part-time membership is good or bad, I suggest that having all executive officers or a majority of them on the board is bad. These people have their own problems inside the organisation in the management of the business, and they tend to say to each other, "I will back up something you do today if you will back up what I shall be doing tomorrow." No doubt my right hon. Friend has had experience of that sort of thing in the past. Assuming I am right in thinking that we are getting four executive members, the lower limit of six must be too small if my argument is right. I would like to see the number increased to eight. There should be either three or four members who are not executive members.

I come to the point made by the hon. Member for Workington (Mr. Peart) about full-time or part-time members. If he has followed my argument he knows that I want to increase the number on the board of people who are not executive members, whether they be full-time or part-time. Experience has shown that full-time non-executive members of a board tend—I will not say to become a nuisance—to collect round themselves people, offices and staff in order to make themselves seem important, although they have no particular job or function.

Would the hon. Member use that argument about the Lord President of the Council?

He has obviously a political function, and, anyway, he will not be a member of the board. That remark was quite off the point.

We have seen full-time non-executive members of nationalised boards, and they have not been a success. I will not go into the details of that point, but we remember when Lord Citrine was on the National Coal Board. He did very useful work, but he is doing more useful work now. But he was in the position of being a full-time member without any particular function to perform. The hon. Gentleman may disagree with me, but I am trying to underline the point that I am making. One could give other instances, and make the same point.

What I am asking my right hon. Friend this afternoon is, first, will he consider the question of the six members as a minimum at a later stage; and, secondly, will he refuse to accept the statement of the hon. Gentleman opposite, to the effect that the whole Committee would support a full-time member, as being the opinion of the whole Committee, because I do not believe it is? I think that we get very useful views from part-time members and that they are more useful than full-time non-executive members. Therefore, I hope that my right hon. Friend will bear this point in mind when he considers these matters.

On behalf of my hon. Friends on this side of the Committee, I wish to express our regret at the rigidity with which the Minister of Works has approached the Amendments which have been put forward. Although he has made one major concession in the Clause proposed by one of my hon. Friends, none the less the Clause as amended is nothing more than the damaging legacy which Lord Cherwell left to the Government.

I cannot help feeling that under the new dispensation the Authority is bound to be seriously hampered in its work. I must say that in all the proceedings which have so far taken place I have been bewildered and baffled by the part played by the Minister of Works. He has replied to the various Amendments. He is the representative of the Lord President in connection with this Bill and in dealing with the Amendments which have been put forward and which are now consolidated in Clause 1.

I thought it remarkable that he should get up time after time to answer points put forward from this side of the Committee while, by his side, the Minister of Supply sat throughout the afternoon like an undertaker's mute. By the side of the Minister of Supply sat his Parliamentary Secretary, looking like an undertaker's under-mute. Of course, I do not say that disrespectfully. But there they were, representing their Ministry's part in atomic development and yet not finding themselves obliged to open their mouths to discuss the various transfers which are taking place.

On Second Reading, the Minister of Supply gave an undertaking that during the Committee stage he would not only be present, but would hold himself available to deal with the various matters raised. Various matters affecting the Ministry of Supply were raised this afternoon, but not a single word has been uttered in defence of the admirable work which the Ministry of Supply did in connection with atomic energy.

I could not help being surprised again when I heard the Minister of Works defending what is, in effect, likely to become a functional authority. The last time I heard the right hon. Gentleman talking about a functional authority was at Strasbourg, when, as I clearly recall, he attacked the Schuman Plan as it was then presented. The general term which he used to describe its weakness was that it was nothing but a body of technocrats.

Here, we are to have a body of technocrats which will be completely removed from effective democratic control, a body of people brilliant in their own particular functions, no doubt, but, none the less, not responsible in any way to Parliament. A new form of technocracy is emerging under this Bill, and I submit that it is a most dangerous form, and something novel in our constitutional experience.

Atomic energy presents new and very serious problems, not only technically and scientifically, but also constitutionally. It presents constitutional problems because it has, to a great extent, to be removed from public scrutiny. But it is a functional power and we should do all that lies in our power as Members of Parliament to make sure that those forms of atomic energy which can safely be exposed to public examination come before Parliament and are examined by it.

The object of this Clause will be, in great measure, to confirm that the study of atomic development will come under the supervision of Members of this House because the Authority and the Lord President in his remote Lotus Land will have no direct connection at all with Members of this House who are, after all, the representatives of the public and have a public responsibility and a public trust. These Members will have no direct access at all to the Lord President.

Of course, when the Lord President wishes to make his views known to the House, he can, no doubt, do so through the person of the Minister of Works, whose personal qualities we all admire, but who, nevertheless, so far as the Lord President is concerned, will merely be a mouthpiece. He will be able to convey the views of this House to the Lord President in return, but he will have no direct power to make personal decisions in any matters affecting atomic energy, except, perhaps, in the physical arrangements of the structures which are to house the machines of atomic development.

That is a very serious matter. Here we have a great revolutionary development in the technique of power production and at the very formative time when hon. Members should be permitted to have the closest possible access to this development they are being removed from it. This Clause is full of the most sinister implications.

I noticed that the Minister of Works gave us absolutely no idea of the form of liaison to be used by the committees which will connect the various Ministries which are now assembled to form the body responsible for atomic power. We have absolutely no idea how this liaison will work. Surely, there is no reason whatsoever why the House should be kept in the dark about how the channels of connection and communication are going to be established.

How, for example, if one wanted to know in what form the new school of reactor technology is to be established, can we obtain that information? Should we go directly to the Minister of Works or should we apply to the Lord President, or, again, should we perhaps ask the Minister of Supply whether he has any recollection of the development which took place during the time that he was responsible for it? No one knows, and in the course of the whole debate this afternoon we have not been enlightened as to how that information is to be obtained.

As I said at the outset of my speech, there is a considerable part of atomic energy which must, by its very nature, remain secret. But because that is so, it is no reason why the Government or their Ministers should abuse that situation to deny to hon. Members information to which they are perfectly entitled.

We know that in due course the Lord President is going to set before the House an annual report, but, in the meantime, we shall not have had the means of eliciting from him many of those day-to-day facts of which we should certainly have knowledge. Thus we shall not be able to apply ourselves usefully to the study, examination and investigation of the report which the Lord President will ultimately lay before this House. These are considerations which we should all bear in mind when considering the Clause as it now stands.

7.0 p.m.

I cannot help concluding that the reason why we now have the situation in which the Lord President is respon- sible for a development from which he will be personally removed and with which he will have little or no day-to-day contact is merely because of a record piece of hangover thinking inspired by Lord Cherwell in another place. That is why we are now saddled with an extraordinarily cumbersome piece of apparatus as represented in Clause 1. The future of atomic development has now reached a climacteric. Everyone hopes that under the new Authority we will be able to make an enormous stride forward, but that can only be taken if hon. Members have access to publishable information so far denied them.

When the Minister of Works replies to the argument which has been advanced, I hope that he will inform us what are the channels of communication. How can we obtain permissible information? How can we apply ourselves to the examination of the report which the Lord President will ultimately produce? Only if we have a reply on that can we believe, even with misgivings, that Clause 1, as it stands, is tolerable. But I hope that my right hon. and hon. Friends will go into the Lobby to oppose this Clause, because I believe it is a bad thing for atomic energy and for this country.

As my hon. Friend the Member for Coventry, North (Mr. Edelman) has said, this Clause is very important because it lays down the organisation of the Authority and the relationship of the Authority to the Government and to Parliament. As we on this side have said previously, we are disturbed by the organisation which is being presented to us. There are one or two points which ought to be cleared up before we leave this Clause.

I tried a while ago to put forward some idea of how I thought the relations of the Authority to the Ministry of Supply and to the Lord President of the Council should be arranged. When the Minister of Works replied he misquoted me and got the thing all wrong. I intended to be rather sharp with him, but as all my constituents are in a very happy state of mind tonight as a result of what happened at Bolton this afternoon—Sheffield Wednesday are going to win the Cup—I shall be very charitable and not speak as harshly as I had intended.

I should make it clear that in our view the Lord President of the Council must, and ought to, retain overall supervision of all the scientific research in every field, and overall supervision of most of the industrial development coming from that research. The relations of this Authority to the Lord President ought to be very much the same as those of other pieces of Departmental research—if I may put it in that way.

The Department responsible for the day-to-day detail of agricultural research is the Ministry of Agriculture. The day-to-day work of aircraft research is the responsibility of the Ministry of Supply. Medical research the Department is the responsibility of the Ministry of Health, and the Ministry of Fuel and Power is responsible for fuel and power research. In atomic power we think that the Ministry which should be responsible—under the supervision of the Lord President—for the day-to-day working should be the Ministry of Supply, and that that organisation which we have suggested in the Amendments we have dealt with is one which, even at this stage, the Government should consider.

When we entered into this discussion the hon. Member for Kidderminster (Mr. Nabarro), expressed views about the relations between the Authority and its customers. He tried to show that in none of the nationalised industries had we attempted to set up any representation of customers, or any association between any Authority and its customers. Because we had not done that in relation to the nationalised industries, he argued that we ought not to do it in relation to this Authority. That is a rather doctrinnaire view, which we hardly expected from the hon. Member—or it is a doctrinnaire view whether we expected it or not. We want more elasticity of mind in these matters.

It is, in any case, well worth while looking at the set-up in the fuel and power industry in order to impress upon the Government that, even at this stage, the Governmental relationships in all this should be reconsidered. While it is perfectly true that in the fuel and power industries there are no customers sitting as functional representatives on the board, they do come together under the chairmanship of the Minister of Fuel and Power to get somewhere near a common policy.

As two of the industries concerned are the biggest customers of the other, one assumes that in those general discussions there is some co-ordination of policy. We think a better co-ordination of policy could be achieved in this if the Lord President of the Council is there in his general supervising capacity and the day-to-day administration is in the hands of the Department most naturally associated with it—the Ministry of Supply.

One or two statements have been made which were not quite accurate and which ought to be cleared up. My hon. Friend the Member for Nelson and Colne (Mr. S. Silverman)—who seems still to hold the view that the Ministry of Supply is largely concerned with armaments—ought to bear in mind that, in so far as there is Government supervision of public and private industry, the Ministry of Supply exercises supervision over the whole range of the metal and engineering industries. The part of the production of those industries which goes into armaments is, I imagine, about 12 or 15 per cent.—certainly much less than 20 per cent, of the whole of their production.

No reference has come from the other side to the fact that the Ministry of Supply has final statutory control and supervision of the iron and steel industry. There must be the closest association between atomic energy development and the iron and steel industry, because someone has to provide the iron and steel both for the power and atomic plants to be set up and for machinery that will go into them.

I would say to the hon. Member for Nelson and Colne that there is another important reason why atomic energy development and this Authority should be associated with the Ministry of Supply. He and I—and I hope every hon. Member of this Committee—would like to see an easing of international tension which would lead to a general reduction in armaments. When that comes about, some authority or Department has to take on the job of unwinding that armament programme, and to make sure that, in the unwinding, we do not put people out of work or have machines idle, but make the change-over from wartime to peace-time production as smooth, as easy, as efficient and as competent as the unwinding accomplished by the Labour Government at the end of the war.

In the Ministry of Supply we have a Ministry that can turn to atomic energy development and, as it unwinds one part of the machine, get another part going to take up the slack. That argument, I think, ought to be borne in mind, because this job, and all the work associated with it should be in the hands of one Department which, in the make-up of our industries, is, naturally, responsible for all the parts and all the activities which go to make up the whole picture.

We should remind ourselves how all this started. In the speech that has been referred to, which was made by a former Member of the Government in another place, an attack was made upon the Ministry of Supply as being an unsuitable body for the control of atomic energy development. The terms of Lord Cherwell's Motion in another place were:

Lord Cherwell said:

I fear that I shall be out of order if I go on quoting Lord Cherwell, but I should like to make one more reference to his speech. He went on to say that he thought we were lagging behind Russia both in weapon development and in peaceful development, and that because of that we should take our atomic energy development out of the hands of a State Department. I do not know what is his view about industrial organisation in Russia, but I am sure that it would be in the hands of a State Department there, as we feel it should be here. We want to see atomic energy developments kept within a Government Department which is naturally associated with them. For that reason I hope that we shall go into the Lobby to show the Government that they have the wrong form of organisation here and that they ought to reconsider the matter.

In the debate on a previous Amendment my right hon. Friend the Member for Vauxhall (Mr. G. R. Strauss) was not able to persuade me that if we were to have a change in the existing atomic energy set-up it was a good idea to make the Minister of Supply rather than the Lord President of the Council ultimately responsible.

It would be quite out of order to rehash all those arguments, and I do not intend to do so, but I thought it right to say that in spite of the very able arguments of my right hon. Friend and of my hon. Friend the Member for Hillsborough (Mr. G. Darling) I still remain of opinion that the Minister ultimately responsible should be the one who is generally responsible for scientific research and development rather than one who is functionally and inextricably associated with the Service Departments, whose main function must be that of an agent of those Departments, and whose other functions are complementary and ancillary.

To that extent my sympathies with the Amendment were most unaccountably—and, in the view of my hon. Friends, most unreasonably—with hon. Members opposite. That is the extent of my agreement with hon. Members opposite, and when my right hon. Friend leads us into the Lobby at the end of this debate in order to try to remove this Clause from the Bill I shall most loyally and enthusiastically follow him. Why?

7.15 p.m.

Here I come to an argument which was used against me by an hon. Member opposite in the course of the debate on the previous Amendment. He said that there was some inconsistency between my opposition to my right hon. Friend's Amendment and my opposition to the Bill, but I do not think there is any such inconsistency. I know that there is no difference of opinion among any of us that the development of atomic energy is probably the most important matter with which civilisation has been faced for a very long time. We are quite agreed about that, however much we may differ on the inferences to be drawn from it.

Most of us are also agreed that the critical part of the whole controversy is the question how to make this scientific miracle conduce to the development of human happiness rather than to the virtual extinction of the human race. That is only another way of referring to the importance of developing it for civil and constructive purposes rather than for purposes of mutual destruction in war.

Having regard to the nature of this subject and to the practical implications of its civil development, do hon. Members opposite really imagine that it is capable of being developed and used in the public interest by some kind of competitive private enterprise? The one thing which is established beyond further controversy by this project is a collective development of communal resources, in the communal interest, and by some communally responsible authority. It is quite impossible to think of the atomic energy age in terms of private industrial competition.

So far, I am with the Bill, because it does not suggest any such thing. It suggests that a matter upon which the happiness and security of the human race depends shall be handed over from a Government Department to a public authority, with only indirect public control. Unless the Bill has that purpose it has no purpose. Why do the Government wish to do this?

I accept what my right hon. Friend said in that earlier debate to which I have already referred, that the only way in which one can understand the Bill and this Clause is first to understand that it arises out of the ideological, doctrinaire inhibitions of the Government and their supporters. They simply cannot tolerate the idea that the power on which the development of our resources will ultimately depend, and by which they may be advanced to a degree unknown in history, can be developed and administered only publicly, communally, and not privately.

Although the practical implications prevent them from doing what they may like to do, that is, hand over the whole thing lock, stock and barrel to private interests, as though it were some form of road haulage, they get as near to that as they can by saying, "Well, at any rate let us diminish Parliamentary control as much as Parliamentary control can be diminished." The practical effect of this Clause is only that.

I quite appreciate what has been said by my right hon. Friend and my hon. Friends about the mischief of having the Minister who is ultimately responsible, responsible to another place and not to the House of Commons. I did not think that was a good argument in that other case, but it is a good argument in the matter now before the Committee. Suppose that defect were cured. Suppose my right hon. Friend had his way and the Minister of Supply were made responsible instead of the Lord President of the Council. Or suppose my other hon. Friend had his way, my hon. Friend who made the interesting and, I think, fruitful suggestion that some day we may find it necessary to have a Minister responsible for this matter alone, away from the Lord President of the Council and away from the Minister of Supply himself. Suppose the Minister were in the House of Commons. Should we be better off?

I should have thought that this was the matter, above all, in which Parliament, no doubt using proper discretion as to the detail into which it would go, would nevertheless have decided for itself in its own discretion how far it would go and how far it would not go. If there is a matter in which Parliament, doing its duty, shall refuse to abdicate its responsibility to any other authority, it is precisely the development and the use of atomic energy.

Surely I am right in thinking that, by the Bill, Parliamentary authority, so far as finance and control are concerned, is exercised through the Minister, who is responsible to Parliament, and could be responsible to the House of Commons. Surely that is as exact as it possibly could be in any system the hon. Gentleman suggests.

The hon. Gentleman will agree that it would be a lot more exact if the responsible Minister could be asked Questions every week. He cannot, even if he is a Member of the House of Commons. The hon. Gentleman must remember the debate we had on the Money Resolution. Here we have the only case in which, as far as I know—I hope I shall be immediately corrected if I am mistaken—Parliament has voted public money, money out of the Consolidated Fund, to be administered by an outside authority.

I do not think there is any other case. I know of none. We have parted with responsibility even for the finance. The hon. Gentleman may say, and quite rightly, that we have not parted with it altogether; that, no doubt, there will be, as in the cases of the other public corporations, one day a year in which 625 Members of Parliament will compete with one another, during five or six hours, to review the operations of this Authority. I see doubtful shakes of the head among my hon. Friends, because there is no provision for that, but I think the Opposition would be failing in their duty if they did not find some method of having, even under these arrangements, some periodic review of that Authority, some periodic discussion of that as of the other public authorities.

However, this is not a matter in which Parliament ought to be satisfied with that. It is a matter in which we ought to exercise the closest possible control, and that control is only to be exercised by having a Minister in the House of Commons who is continuously responsible to the House of Commons for what he does. It is not the kind of matter we can forget about for 364 days in the year. It is not a matter the casual or sporadic discussion of which once a year, to see exactly what is happening to the future of the human race, ought to content us.

It seems to me that, quite apart from the argument whether it is this Minister or that Minister who ought to be responsible, it is perfectly clear that there ought to be some Minister continuously and directly responsible to the House of Commons.

Is the hon. Gentleman not aware that another Clause gives the Minister power to give particular directions to the Authority? Is the Minister not, therefore, answerable to the House on matters of considerable detail?

The hon. Gentleman has been long enough in the House of Commons to know exactly how that would work. The Minister is under no duty to communicate to the House every direction he gives as and when he gives it, and even if he is we cannot always ask him Questions when we want to, or debate what he does when we want to. I concede to the hon. Member that he would be ultimately responsible for those directions to the House of Commons, but he would be accountable only in the annual debate in which, on one day once a year, many hon. Members would compete with each other in a hotchpotch of all kinds of questions and criticisms, some of detail, some of principle.

I cannot see how the control by the House would be less under these arrangements than if the Minister of Supply were left in charge.

I can only refer the hon. Gentleman to the book published by one Erskine May, which defines the rights of Members of Parliament to question Ministers and to debate what they do, and one of the conditions is that a Minister must have responsibility for the matters about which Questions are asked or debates are held. The whole purpose of creating a public authority, rather than having a matter administered by a Government Department with a Minister at its head, is exactly to avoid interference by Parliament with the conduct and administration of the matter concerned. That is what an outside public authority is always created for. What else is it for?

That is what we have had all these discussions about during the last two or three years now, to try to restore to Parliament, largely at the instance of hon. Members opposite, some of the Parliamentary control lost by the creation of these outside public bodies, instead of leaving matters in the hands of Ministers directly responsible to the House of Commons. That is what the entire controversy has been about and I am not surprised to find that hon. Members opposite, who have taken so large a part in it, have not understood what it was all about.

If the hon. Member for Mitcham (Mr. Carr) agrees with me, he should support us in opposing the Clause. There should be complete, continuous, control by Parliament through a responsible Minister in all these matters. If the hon. Member agrees with that, I beg him to believe me when I tell him that the only way in which we can achieve it is by having the matter conducted by a Government Department, with a Minister at the head of it, and not by a public authority outside.

7.30 p.m.

I agree with very much of what was said with all his customary force and lucidity by my hon. Friend the Member for Nelson and Colne (Mr. S. Silverman). In particular, I agree with him that the burden of responsibility on this Authority, on the Minister—whoever he may be—who will have to supervise the policy of the Authority, and, indeed, on the House, is as serious as any which comes to any body of men in one generation.

This is, clearly, a turning point in the development of a scientific discovery, the future of which may, indeed will, most seriously affect the fortunes of mankind and, particularly, of those of us who live in the industrial community of these islands, depending for our standard of life and our bare existence on the use of fuel and power, the present resources of which are gradually being worked out under our eyes.

This critical moment is being chosen by the Government themselves, on the advice and the knowledge which they have on what is taking place, as a moment at which, if we move in the wrong way now, can lead us most seriously astray. In those circumstances we are being asked to set up an Authority under certain control.

When you put the Question about this Clause to us, Sir Charles—I hope in a comparatively short time—what each of us has to decide. Aye or No. is whether we can say that this Authority, so constituted and so controlled, is the right instrument for the purpose. In coming to that decision we must bear in mind that we are deliberately departing from a form of organisation which, so far at any rate, has proved conspicuously successful.

We have, therefore, to be convinced that this Authority is more gifted with, in the words of the Government, flexibility and rapidity of decision—those are the two things upon which the Government ask us to rely—not merely than the Ministry which has done the work in the past but also than any other form of body under any other supervision could be.

I say, quite frankly, that we have not had nearly enough information about the Authority. We have not been given by the Minister nearly enough information, having regard to the particular gravity of the decision which we are asked to take. We have been told that there will be the three atomic knights, as they are occasionally called, and that, as chairman, there will be Sir Edwin Plowden, who, we know, is a most distinguished and highly intelligent man. That accounts for four of the people on the Authority.

We have had one other person added, name unknown, character slightly vague, whole-time or part-time we do not know, who is to be an expert in labour relations. Well and good: that makes five. We have one to play and then we reach the minimum laid down in the Bill. That is not enough. There ought certainly to be more than six people, on the concessions which the Minister made today, and I hope he will tell us so in plain English before we reach the end of the proceedings on the Clause.

I go a little way, oddly enough, with the hon. Member for Heeley (Mr. P. Roberts) in this respect. It seems to me that we are quite certainly to have on this Authority distinguished scientists, but we ought also to have men with a peculiar combination of public reliability, public responsibility, appreciation of the public need and, quite frankly, a sensitivity towards the highest morality of the age.

I should like an assurance from the Minister that he will put on to the Authority some men whose particular burden would be social responsibility towards the community in its very largest sense, and certainly a responsibility towards those who are working in this enterprise and those who will be most directly concerned. If we cannot have these things, then I do not think the Committee is justified in embarking on so momentous a decision in the dark in that respect.

Turning to the question of Ministerial responsibility, I will not repeat what has been said more than once by my right hon. and hon. Friends. It is quite wrong at this critical stage to take a man who has been a good organiser in the Conservative Party and has then been sent to another place because he was a good organiser, who has been a Food Minister and who has broadcast about red meat, about whom I know singularly little, whose services, as far as I can see, are entirely political services—as far as they have not been connected entirely with other matters—and who is out of this House, and to put the responsibility in this case on him.

Would the hon. and learned Gentleman kindly tell me to whom he is referring?

I should have thought my reference to red meat would have been enough. I mean the Lord President of the Council.

Lord Woolton is not the Lord President of the Council. That is Lord Salisbury.

It is sufficient for this purpose that he should be out of the House and that he should be a political figure. The record of administration of one noble Lord is no better for this purpose than that of another, and I do not withdraw one word of what I said. The principle is exactly the same. The qualities of these two persons, although they happen to be different people, are sufficiently similar from this point of view and the objection seems to be as fundamental in one case as in the other.

Upon those grounds I, personally, would not accept the Clause. I believe that we are being asked to take a step in the dark in connection with the Authority, and although a little light has been thrown on the Lord President of the Council for my benefit, we are also being asked to take a wrong step in handing over policy control on this matter to someone who is not in this House and who is not directly responsible to this House.

We have had a very interesting debate on this Clause which, of course, is of fundamental importance to the Bill because it sets up the Authority. The hon. Member for Nelson and Colne (Mr. S. Silverman) asked the crucial question: why have an Authority at all? We have given our reasons for that in former debates. Quite briefly, the reasons which prompted the right hon. Gentleman and his hon. Friends opposite to put coal, gas and electricity in the hands of boards or corporations and not inside a Government Department are the reasons which weighed with us when considering this new nationalised form of production.

There are, of course, certain differences between the other nationalised undertakings and atomic energy. We are here dealing with secret weapons and with a subject which raises acute international issues. We are also dealing with a body which is not going to earn a revenue of significant size compared with its outgoings and must, therefore, be wholly financed by money provided by this House. All these are distinctive features of atomic energy, but none the less, we think it is right to try to get the best of both forms of organisation—that of the nationalised boards and of Departmental control.

As I had occasion to say in a previous debate this of course, is a new form of organisation, in which the Minister concerned, as we shall no doubt discuss when we come to Clause 3, is to have very special powers to intervene at any time he likes on matters general or matters particular. That gives him very much closer control of the Atomic Energy Authority than the Minister of Fuel and Power has over the nationalised industries for which he is responsible.

The right hon. Gentleman has made a rather special point about the fact that this Authority will have practically no revenue. Is the Minister briefed to say for what period of time this situation is expected to last and whether over a period it is not possible that the revenue may well equal the expenditure of the Authority?

How pleased I should be if I could forecast with certainty when the revenue is going to come in from the sale of fissile material for power reactors and from the royalties for their designs, but we desire on both sides of the Committee to progress to that point as quickly as we can.

In the meantime, we have to realise that the great bulk of the expenses of this Authority, which are very heavy, will have to come from public funds.

These funds are under the control of Parliament. They are voted every year and Parliament can refuse the money if it does not approve of the policy for which it is asked.

When it comes to seeking information about the work of the Authority, which I was asked about by the hon. Member for Coventry, North (Mr. Edelman), I can only say to him that it often happens that a senior Minister is in another place and his business is carried on for him in this House by a junior Minister. I shall do my best to act as if I were the Lord President's Minister of State and Questions can be put down to me just as if I were in the same position as the Under-Secretary for Air or the Under-Secretary for Commonwealth Relations. Both of my hon. Friends have their Ministers in the Lords.

7.45 p.m.

I should have thought that this was something with which the Committee was quite familiar. I may not fulfil the rôle as well as hon. Gentlemen would want, but I have access to the workings of the Lord President's department just as I should have if I were a junior Minister. If we allow this arrangement to carry on for a bit my hope and belief is that the House will, in fact, get some information, because we have come to a decision that we have reached a stage in the development of atomic energy where it is possible to give hon. Members more information on the civilian side. That is the desire of my noble Friend. He thinks that it is part of the duty of the Authority to give as much learned information and popular information as possible.

The right hon. Gentleman sought to draw an analogy between himself and the Under-Secretary of State for Commonwealth Relations and the Under-Secretary of State for Air. Surely there is a radical difference. In their case they are members of the Department. The right hon. Gentleman has to represent a totally different Department from the Department which one understands will accrue around the Lord President. To obtain information from the Lord President he will himself have to go by a devious route to get it, and we ask how that channel of communication is to be established.

I do not think that the hon. Gentleman is quite right. The route is no more devious than sending for one of my own advisers in the Ministry of Works. On the contrary, I have been working this arrangement for two or three months and I have never had any difficulty at all in getting the advice of any of those who are in his unit—and it is not the Lord President's intention that I should have. If the hon. Gentleman prefers he can write a letter to the Lord President or to me. That is a matter for him to choose. He will get the same answer.

I want to say one word about the composition of the Authority. I was asked by the hon. Member for Workington (Mr. Peart) whether we did not think that all the members of the Authority ought to be whole-time. My hon. Friend the Member for Heeley (Mr. P. Roberts), who has great experience in industrial organisations, took the other view, that some of the members of the Authority ought to be part-time.

I have looked into this rather carefully to find out if one could really define what is a whole-time member of the Board. It is exceedingly difficult to be quite clear what exactly "whole-time" means, especially, of course, when, as is the case here, some of the atomic experts who are to be invited to join the Authority as members also have executive duties. It is clear to us that even if they were whole-time members of the Board they would be spending a great deal of time on executive duties.

The kind of suggestion which my hon. Friend put forward appeals very much to the Government, and I shall convey to the Lord President the suggestion in particular, that the minimum number should be raised from six. I hope that he will allow us to look into that, especially as we have added one more member to the board by the Amendment which I have accepted.

I think that the hon. and learned Member for Kettering (Mr. Mitchison) said that he hoped that in selecting other members to fill up the board, the Lord President would choose men of public reliability. I suppose that he means men of outstanding experience and reputation for the work they have done in other spheres. That is exactly what my noble Friend has in mind. He certainly feels that the executive members would benefit from the advice of two or three men of just that character, and he is looking round for them.

Hon. Members opposite make a mistake about the Lord President and about the difficulty of having a Minister in another place. The Lord President is, I should say, respected from one end of the country to the other. If one wanted to find a member of the board to match up to the qualifications that the hon. and learned Member for Kettering has put forward, he is exactly the kind of man one would choose.

I am certain that there is some advantage in this complicated affair in having a Minister who does not have very large Departmental responsibilities. All the arguments that were brought forward in favour of the Minister of Supply, on the ground that my right hon. Friend covers such an immense field in industry, are perfectly true. But that means that he does not have a very large amount of time to devote to a growing department like atomic energy. That is what my right hon. Friend feels.

If we are moving in the direction, desired by some hon. Members opposite, of having a Minister responsible for atomic energy and nothing else, we are very nearly there with the Lord President. Therefore, I hope that the Committee will not divide against the Clause. The whole of these arrangements have been thought out simply to try to get the best possible organisation for developing what we all know to be the most promising of the industrial developments in our country today.

I am sure that these proposals represent the Government's view of what is best for the development of atomic energy. We on this side disagree fundamentally, not so much on any matter of principle, party or political, but because we think the Government have made a profound mistake, a mistake which has been brought about largely by the prejudice which some people on the other side of the Committee have about the usefulness and efficiency of Government Departments.

We think that that impetus that was started some years ago by Lord Cherwell before he was a Minister has had its effect in Government circles. The Bill is the result of that impetus, and we are now asked to consider its most important Clause. Because we think the Bill is a bad one and is mistaken, and as this Clause is the kernel of the Bill, we propose to vote against it. But I must first make one or two brief comments on the speech of the Minister.

The right hon. Gentleman told us that one of the reasons why the Authority is being set up is because the Labour Government set up corporations for gas, electricity and coal and, therefore, it was logical that the present Government should set up the Authority for atomic energy. That does not follow at all. What we have not had to our satisfaction is an argument why the present, in our view, most satisfactory situation of the atomic energy department, which has achieved such outstanding and remarkable successes, should be changed at all. It is on those grounds that we differ from the Minister.

When the right hon. Gentleman tells us that he will be able to inform the House on anything that the House wants

to know about the Authority and that he will be just as full of information as an Under-Secretary in a Department, surely he is talking nonsense. A Parliamentary Secretary in any Department is immersed every day in the activities of that Department. He knows from personal experience what is happening. The Minister of Works will be immersed in matters wholly outside the affairs of atomic energy. He will be immersed in his own Departmental affairs. We do not even know today whether the Authority will employ the Ministry of Works for building its establishments; we were told that it would be for the Authority to decide. We do not know whether the Authority may not prefer to employ private contractors and by-pass the Ministry of Works.

As far as we are aware, the Minister of Works will not be in the picture, and certainly he cannot have that day-to-day knowledge of the activities of the Atomic Energy Authority which the House expects. Atomic energy affairs so closely affect today, and even more in future, the lives of the people, that we want to have in the House someone who is right in the heart of it. In fact, we want to have someone who is really the authority in control to answer Questions in the House and to tell us what is happening.

My hon. Friends have expressed admirably and succinctly the reasons why we do not like the Clause. For those reasons and many others which I would happily add if there were more time, we shall vote against the Clause to register our protest at the very silly proposal which the Government are bringing before the Committee and one which, in spite of whatever good intentions lie behind it, will do much more damage to the future of atomic energy in this country than it can possibly do good.

Question put, "That the Clause, as amended, stand part of the Bill."

The Committee divided: Ayes. 244: Noes, 232.

Division No. 52.]

AYES

[7.56 p.m

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

Barber, Anthony

Bevins, J. R (Toxteth)

Amory, Rt. Hon. Heathcoat (Tiverton)

Barlow, Sir John

Bishop, F. P.

Anstruther-Gray, Major W. J.

Beach, Maj. Hicks

Boothby, Sir R. J. G

Arbuthnot, John

Bell, Philip (Bolton, E.)

Bossom, Sir A. C

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

Bell, Ronald (Bucks, S.)

Boyle, Sir Edward

Baker, P. A. D.

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

Braine, B. R.

Baldock, Lt.-Cmdr. J. M

Bennett, Dr. Reginald (Gosport)

Braithwaite, Sir Albert (Harrow, W.)

Banks, Col. C.

Bennett, William (Woodside)

Braithwaite, Sir Gurney

Brooman-White, R. C.

Howard, Gerald (Cambridgeshire)

Perkins, Sir Robert

Browne, Jack (Govan)

Howard, Hon. Greville (St. Ives)

Peto, Brig. C. H. M.

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

Hudson, Sir Austin (Lewisham, N.)

Peyton, J. W. W.

Bullard, D. G.

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

Pickthorn, K. W. M

Bullus, Wing Commander E. E.

Hulbert, Wing Cdr. N. J.

Pilkington, Capt. R A

Burden, F. F. A.

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

Pitman, I. J.

Butcher, Sir Herbert

Hyde, Lt.-Col. H. M.

Pitt, Miss E. M.

Campbell, Sir David

Hylton-Foster, H. B. H.

Powell, J. Enoch

Carr, Robert

Iremonger, T. L.

Price, Henry (Lewisham, W.)

Cary, Sir Robert

Jenkins, Robert (Dulwich)

Profumo, J. D.

Channon, H.

Jennings, Sir Roland

Raikes, Sir Victor

Clarke, Col. Ralph (East Grinstead)

Johnson, Eric (Blackley)

Ramsden, J. E.

Clarke, Brig. Terence (Portsmouth, W.)

Johnson, Howard (Kemptown)

Rees-Davies, W. R.

Clyde, Rt. Hon. J. L.

Jones, A. (Hall Green)

Remnant, Hon. P.

Cole, Norman

Kaberry, D.

Renton, D. L. M.

Colegate, W. A.

Kerby, Capt. H. B.

Ridsdale, J. E.

Conant, Maj. R. J. E.

Kerr, H. W.

Roberts, Peter (Heeley)

Craddock, Beresford (Spelthorne)

Lambert, Hon. G.

Robinson, Roland (Blackpool, S.)

Crosthwaite-Eyre, Col. O. E.

Lambton, Viscount

Robson-Brown, W.

Crouch, R. F.

Lancaster, Col. C G.

Rodgers, John (Sevenoaks)

Crowder, Sir John (Finchley)

Leather, E. H. C.

Roper, Sir Harold

Crowder, Petre (Ruislip—Northwood)

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

Ropner, Col. Sir Leonard

Darling, Sir William (Edinburgh, S.)

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

Ryder, Capt. R. E. D.

Deedes, W. F.

Lindsay, Martin

Sandys, Rt. Hon. D.

Dodds-Parker, A. D.

Llewellyn, D. T.

Schofield, Lt.-Col. W

Donaldson, Cmdr. C. E. McA.

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

Scott, R. Donald

Donner, Sir P. W.

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

Scott-Miller, Cmdr. R.

Doughty, C. J. A.

Lockwood, Lt.-Col. J. C.

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

Douglas-Hamilton, Lord Malcolm

Longden, Gilbert

Smithers, Sir Waldron (Orpington)

Drayson, G. B.

Low, A. R. W.

Smyth, Brig. J. G. (Norwood)

Drewe, Sir C.

Lucas, Sir Joeelyn (Portsmouth, S.)

Soames, Capt. C.

Duncan, Capt. J. A. L.

Lucas, P. B. (Brentford)

Spearman, A. C. M.

Duthie, W. S.

Lucas-Tooth, Sir Hugh

Speir, R. M.

Eccles, Rt. Hon. Sir D. M.

McAdden, S. J.

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

Eden, J. B. (Bournemouth, West)

McCallum, Major D.

Stanley, Capt. Hon. Richard

Elliot, Rt. Hon. W. E.

McCorquodale, Rt. Hon. M. S.

Stoddart-Scott, Col. M.

Erroll, F. J.

Macdonald, Sir Peter

Storey, S.

Fell, A.

McKibbin, A. J.

Strauss, Henry (Norwich, S.)

Fisher, Nigel

Mackie, J. H. (Galloway)

Stuart, Rt. Hon. James (Moray)

Fleetwood-Hesketh, R. F.

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

Studholme, H. G.

Fletcher-Cooke, C.

MacLeod, John (Ross and Cromarty)

Summers, G. S.

Ford, Mrs. Patricia

Macmillan, Rt. Hon. Harold (Bromley)

Sutcliffe, Sir Harold

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

Macpherson, Niall (Dumfries)

Taylor, William (Bradford, N.)

Galbraith, T. G. D. (Hillhead)

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

Teeling, W.

Gammans, L. D.

Maitland, Patrick (Lanark)

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

Garner-Evans, E. H.

Manningham-Buller, Sir R. E.

Thomas, Leslie (Canterbury)

George, Rt. Hon. Maj. G. Lloyd

Markham, Major Sir Frank

Thomas, P. J. M. (Conway)

Glover, D.

Marples, A. E.

Thompson, Kenneth (Walton)

Godber, J. B.

Marshall, Douglas (Bodmin)

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

Gomme-Duncan, Col. A.

Maude, Angus

Thorneycroft, Rt. Hn. Peter (Monmouth)

Gough, C. F. H.

Maudling, R.

Thornton-Kemsley, Col. C. N.

Gower, H. R.

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

Tilney, John

Graham, Sir Fergus

Medlicott, Brig. F.

Touche, Sir Gordon

Grimond, J.

Mellor, Sir John

Turner, H. F. L.

Grimston, Hon. John (St. Albans)

Moore, Sir Thomas

Turton, R. H.

Grimston, Sir Robert (Westbury)

Morrison, John (Salisbury)

Tweedsmuir, Lady

Harden, J. R. E.

Mott-Radclyffe, C. E.

Vane, W. M. F.

Harris, Frederic (Croydon, N.)

Nabarro, G. D. N.

Vaughan-Morgan, J. K.

Harrison, Col. J. H. (Eye)

Neave, Airey

Vosper, D. F.

Harvie-Watt, Sir George

Nicholls, Harmar

Wade, D. W.

Hay, John

Nicholson, Godfrey (Farnham)

Walker-Smith, D. C.

Heald, Rt. Hon. Sir Lionel

Nicolson, Nigel (Bournemouth, E.)

Ward, Hon. George (Worcester)

Heath, Edward

Noble, Cmdr. A. H. P.

Ward, Miss I. (Tynemouth)

Higgs, J. M. C.

Nugent, G. R. H.

Waterhouse, Capt. Rt. Hon. C.

Hill, Dr. Charles (Luton)

Nutting, Anthony

Webbe, Sir H. (London & Westminster)

Hill, Mrs. E. (Wythenshawe)

Oakshott, H. D.

Wellwood, W.

Hinchingbrooke, Viscount

Odey, G. W.

Williams, Rt. Hon. Charles (Torquay)

Hirst, Geoffrey

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

Williams, Paul (Sunderland, S.)

Holland-Martin, C. J

Orr, Capt. L. P. S.

Williams, R. Dudley (Exeter)

Holt, A. F.

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

Wills, G.

Hope, Lord John

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

Wilson, Geoffrey (Truro)

Hornsby-Smith, Miss M. P.

Osborne, C.

Wood, Hon. R.

Horobin, I. M.

Page, R. G.

TELLERS FOR THE AYES:

Horsbrugh, Rt. Hon. Florence

Peake, Rt. Hon. O

Mr. Redmayne and Mr. Legh.

NOES

Adams, Richard

Bacon, Miss Alice

Benson, G.

Albu, A. H.

Balfour, A.

Beswick, F.

Allen, Arthur (Bosworth)

Bartley, P.

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

Anderson, Frank (Whitehaven)

Bellenger, Rt. Hon. F. J.

Blackburn, F.

Attlee, Rt. Hon. C. R.

Bence, C. R.

Bienkinsop, A.

Awbery, S. S.

Benn, Hon. Wedgwood

Blyton, W. R.

Boardman, H.

Hoy, J. H.

Pursey, Cmdr. H.

Bottomley, Rt. Hon. A. G.

Hubbard, T. F.

Rankin, John

Bowden, H. W.

Hudson, James (Ealing, N.)

Reeves, J.

Bowles, F. G.

Hughes, Cledwyn (Anglesey)

Reid, Thomas (Swindon)

Braddock, Mrs. Elizabeth

Hughes, Emrys (S. Ayrshire)

Reid, William (Camlachie)

Brook, Dryden (Halifax)

Hughes, Hector (Aberdeen, N.)

Rhodes, H.

Broughton, Dr. A. D. D.

Hynd, H. (Accrington)

Robens, Rt. Hon. A.

Brown, Rt. Hon. George (Belper)

Hynd, J. B. (Attercliffe)

Roberts, Albert (Normanton)

Brown, Thomas (Ince)

Irvine, A. J. (Edge Hill)

Roberts, Goronwy (Caernarvon)

Burton, Miss F. E.

Irving, W. J. (Wood Green)

Robinson, Kenneth (St. Pancras, N.)

Butler, Herbert (Hackney, S.)

Isaacs, Rt. Hon. G. A.

Rogers, George (Kensington, N.)

Callaghan, L. J.

Jay, Rt. Hon. D. P. T.

Ross, William

Carmichael, J.

Jeger, George (Goole)

Royle, C.

Champion, A. J.

Jenkins, R. H. (Stechford)

Shackleton, E. A. A.

Chapman, W. D.

Johnson, James (Rugby)

Shawcross, Rt. Hon. sir Hartley

Chetwynd, G. R.

Johnston, Douglas (Paisley)

Shinwell, Rt. Hon. E.

Clunie, J.

Jones, David (Hartlepool)

Short, E. W.

Coldrick, W.

Jones, Jack (Rotherham)

Silverman, Julius (Erdington)

Collick, P. H.

Keenan, W.

Silverman, Sydney (Nelson)

Craddock, George (Bradford, S.)

Kenyon, C.

Simmons, C. J. (Brierley Hill)

Crosland, C. A. R.

Key, Rt. Hon. C. W

Skeffington, A. M.

Crossman, R. H. S.

Lee, Frederick (Newton)

Slater, J. (Durham, Sedgefield)

Cullen, Mrs. A.

Lever, Leslie (Ardwick)

Smith, Ellis (Stoke, S.)

Daines, P.

Lewis, Arthur

Smith, Norman (Nottingham, S.)

Darling, George (Hillsborough)

Lindgren, G. S.

Sorensen, R. W.

Davies, Ernest (Enfield, E.)

Logan, D. G.

Soskice, Rt. Hon. Sir Frank

Davies, Stephen (Merthyr)

MacColl, J. E.

Sparks, J. A.

de Freitas, Geoffrey

McGhee, H. G.

Steele, T.

Deer, G.

McInnes, J.

Stewart, Michael (Fulham, E.)

Delargy, H. J.

McKay, John (Wallsend)

Strauss, Rt. Hon. George (Vauxhall)

Dodds, N. N.

McLeavy, F.

Summerskill, Rt. Hon. E.

Donnelly, D. L.

MacMillan, M. K. (Western Isles)

Sylvester, G. O.

Driberg, T. E. N.

MacPherson, Malcolm (Stirling)

Taylor, Bernard (Mansfield)

Ede, Rt. Hon. J. C.

Mallalieu, E. L. (Brigg)

Taylor, John (West Lothian)

Edelman, M.

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

Taylor, Rt. Hon. Robert (Morpeth)

Edwards, Rt. Hon. John (Brighouse)

Mann, Mrs. Jean

Thomas, George (Cardiff)

Edwards, Rt. Hon. Ness (Caerphilly)

Manuel, A. C.

Thomas, Iorwerth (Rhondda, W.)

Edwards, W. J. (Stepney)

Marquand, Rt. Hon. H. A.

Thomas, Ivor Owen (Wrekin)

Evans, Albert (Islington, S.W.)

Mason, Roy

Thomson, George (Dundee, E.)

Evans, Edward (Lowestoft)

Mellish, R. J.

Thornton, E.

Evans, Stanley (Wednesbury)

Messer, Sir F.

Timmons, J.

Fernyhough, E.

Mikardo, Ian

Tomney, F.

Fienburgh, W.

Mitchison, G. R.

Turner-Samuels, M.

Finch, H. J.

Moody, A. S.

Ungoed-Thomas, Sir Lynn

Fletcher, Erie (Islington, E.)

Morgan, Dr. H. B. W.

Usborne, H. C.

Follick, M.

Morley, R.

Viant, S. P.

Foot, M. M.

Mort, D. L.

Wallace, H. W.

Forman, J. C.

Moyle, A.

Warbey, W. N.

Fraser, Thomas (Hamilton)

Mulley, F. W.

Watkins, T. E.

Gibson, C. W.

Murray, J. D.

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

Glanville, James

Neal, Harold (Bolsover)

Weitzman, D.

Gooch, E. G.

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

Wells, William (Walsall)

Greenwood, Anthony (Rossendale)

Oldfield, W. H.

West, D. G.

Grenfell, Rt. Hon. D. R.

Oliver, G. H.

White, Mrs. Eirene (E. Flint)

Grey, C. F.

Orbach, M.

White, Henry (Derbyshire, N.E.)

Griffiths, David (Rother Valley)

Oswald, T.

Whiteley, Rt. Hon. W.

Griffiths, Rt. Hon. James (Llanelly)

Padley, W. E.

Wigg, George

Hall. Rt. Hon. Glenvil (Colne Valley)

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

Willey, F. T.

Hall, John T. (Gateshead, W.)

Paling, Will T. (Dewsbury)

Williams, David (Neath)

Hamilton, W. W.

Palmer, A. M. F.

Williams, Rev. Llywelyn (Abertillery)

Hannan, W.

Pannell, Charles

Williams, Ronald (Wigan)

Hardy, E. A.

Pargiter, G. A.

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

Hargreaves, A.

Parkin, B. T.

Williams, W. R. (Droylsden)

Harrison, J. (Nottingham, E.)

Pearson, A.

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

Hastings, S.

Peart, T. F.

Wilson, Rt. Hon. Harold (Huyton)

Hayman, F. H.

Plummer, Sir Leslie

Winterbottom, Ian (Nottingham, C.)

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

Popplewell, E.

Winterbottom, Richard (Brightside)

Herbison, Miss M.

Porter, G.

Woodburn, Rt. Hon. A.

Hewitson, Capt. M.

Price, J. T. (Westhoughton)

Yates, V. F.

Hobson, C. R.

Price, Philips (Gloucestershire, W.)

Younger, Rt. Hon. K.

Holman, P.

Proctor, W. T.

TELLERS FOR THE NOES:

Houghton, Douglas

Pryde, D. J.

Mr. Wilkins and Mr. Holmes.

To report Progress, and ask leave to sit again.—[ Mr. R. Allan. ]

Committee report Progress; to sit again Tomorrow.

Transport Freight Charges (Increase)

8.8 p.m.

I beg to move,

That an humble Address be presented to Her Majesty, praying that the Railways (Additional Charges) (Amendment) Regulations, 1954 (S.I., 1954, No. 157), dated 12th February, 1954, a copy of which was laid before this House on 15th February, be annulled.

On a point of order, Mr. Speaker. May I ask for your guidance on what form this debate will take? There are three Prayers on the Order Paper dealing with the recent increase in freight rates, and I think it would be convenient to hon. Members on both sides of the House if the three Prayers were dealt with together, though of course it would be open to us to vote separately on the different issues. I should be very grateful if you would give us your guidance, Mr. Speaker.

These three Prayers have this in common, that they all affect transport charges, and if it were the wish of the House, but not otherwise, I would agree to a combined discussion on the first Motion standing in the name of the hon. Member for Caithness and Sutherland (Sir D. Robertson). I would give an opportunity later for Divisions on the other two Prayers—that in the name of the hon. and gallant Member for Down, South (Captain Orr) relating to harbours, docks and piers; and that in the name of the right hon. Member for South Shields (Mr. Ede) relating to canals—if that were asked for, but I cannot do that without the leave of the House. I should like to know the view of the right hon. Member for South Shields on the matter.

Mr. Speaker, that procedure will be quite convenient to us. It will, I think, be apparent from the names on the Order Paper that on each Prayer it is hoped to raise a wide variety of subjects. For instance, I understand that some hon. Members are anxious to deal with the problem of a common charge irrespective of distance, or something approaching that, and others wish to discuss the general question of the increase in charges. We on this side will be quite content if we can have a wide discussion on the first Motion and after that we can decide whether we should like to have Divisions on the second and third Motions.

Does the hon. and gallant Member for Down, South (Captain Orr) agree to that course?

Freight charges have always been a source of great anxiety to those who have the honour to represent Highland constituencies. We have always had to pay the highest rates and charges because we are the furthest away from the centre. That situation applied in the days of private railway companies; it applied when the "Big Four" companies came along, and it applies today.

A great change came over the scene after the war. Before the war, freight rates were fixed within the limits of the Acts of Parliament governing the operations of the various companies, and special rates were given for cheap commodities and major industries where the return was looked for not on a high unit rate per ton, but on the high flow of traffic. During the war that system of rating was departed from for the first time, and for a very good reason. We had not the manpower to devote to a review of all the thousands of freights, and the flat rate of 16⅔ per cent, was imposed on freights and on passengers as well.

That situation has continued since then, and this is the ninth occasion when the Government have been approached to grant a percentage increase in freight. It has now reached the colossal figure of 153 per cent, over the pre-war figure, and in some cases it is as much as 179 per cent. I say that for a service industry that is a colossal increase. I have some knowledge of this subject because I operate a service within the transport service, where the highest charge is a 90 per cent, increase with the average nearer 60 per cent.

This is not a prefabricating industry where raw materials have to be bought at high inflated world prices. It is a service industry. The lines are there. They are the finest of their kind in the world, built by a generation long since dead That is the raw material, plus the wages, coal and maintenance. Coal represents only 5 per cent, of the gross revenue.

I say that an increase of 153 per cent, is an extraordinarily high figure. I think—and I say this with some regret—that there is something wrong with the management of British Railways. I have always been a fervent believer in our railway system. I have said before that I cannot imagine a prosperous Britain without an efficient, economical and well operated railway system, and I can see no other form of transport that will render such a service.

The men in the management grades and the lower grades are second to none, but there is something wrong with policy, and that is the reason why my hon. Friends and I have put down this Prayer. We feel that we could not allow this increase to pass simply on the Questions answered by my right hon. Friend the Minister of Transport in the House of Commons on 10th February, which he amplified when he gave the report of the Consultative Committee. We think that ventilation of the matter is essential, because all is not well with the railways.

It can be imagined how we in the Highlands are hit by this proposed increase. Our rates were high to begin with, but when this compound interest system is raised over 150 per cent, our position can easily be imagined. A deputation of farmers from Northern Scotland, from the Western Isles, from Caithness and Sutherland, from Ross and Cromarty, from Inverness, from Morayshire and from Aberdeenshire came to see us a few weeks ago. They told us, "It is going to be impossible for us to produce crops for human consumption and livestock without incurring a loss. We have obeyed the Government's behest to increase production and we are up 50 per cent, on pre-war figures, but the more food we ship to the South the more we lose." That is an intolerable situation.

These are all men of quality and experience. They did not come here to waste their time or ours, but to bring us a message which we know to be true. The difference which exists between the Government and myself is that they gave in to the Transport Commission on this ninth occasion when it requested another increase. We have no objection to the lower paid railwaymen getting an increase in wages. We believe in good wages as long as they are earned. But we have grave doubts when we are told that a very large number of railwaymen are being maintained by British Railways when their services are not required. We feel that that is a responsibility which does not rest on British Railways, but on the Minister of Labour and National Insurance.

The duty of the Transport Commission is laid down in Section 3 of the 1947 Act, where it says:

The last thing I want to see is any man thrown out of work, but I believe that the policy of rating which I and my hon. Friends are going to suggest will deal with that situation, and work and wages can be found for everyone. I say that the railways are pricing themselves out of business. Their rates are much too high, not only for goods but for passengers. A sheep can be brought from New Zealand to London cheaper than it can be brought from my constituency to London. Can anyone justify such a situation as that?

We say that British Railways should follow sound commercial principles. Let them look for their earnings on a large turnover. If there is any industry in the world that should depend on turnover it must be the railways. The lines are there, the marshalling yards are there, the stations are there, the signal boxes are there and the whole system is going for seven days, night and day, the year round. The trains are running, but they are sparsely filled. They could be filled if rates and fares are reduced; more trains will run, turnover will increase, and so will net earnings.

What happens now? This latest proposed increase is the last straw to break the camel's back. This yielding to British Railways is infectious, because they keep running to the Government and saying, "Look how our expenses have gone up. You will have to give us some more." I should like to hear my right hon. Friend reply, "Go back and earn your own livelihood. Go back and work out your own salvation." Here on the morning of freedom as a result of the 1953 Act, when we propose to give freedom to the transport user and the transport contractor, we are faced with another increase by the monopoly.

Those of us in the far North are very dependent on this monopoly. We cannot operate five-ton wagons from Caithness and Sutherland, from Ross and Cromarty and from Inverness to London in the same way as the short haulier can. We are dependent on the railways, and we should be dependent on the railways. They are there for our service, but they are pricing themselves out of business. As I say, it takes more to bring a sheep from my constituency than it does to bring it from New Zealand. That is uneconomical, unrealistic and a wrong situation. We say that the whole system can be cured by the railways producing a price list—

Are not sheep from New Zealand brought here as frozen carcases and carried in refrigerated ships, whereas the hon. Gentleman is referring to the cost of conveying a live sheep from Scotland to London, which is altogether different?

I am obliged to the hon. Member for his interruption. I am referring in both cases to sheep carcases.

I understand that the hon. Gentleman is talking about the cost of shipping a carcase from Wellington to this country and is not saying anything about the charges of New Zealand railways, which I understand are more expensive than they are here?

That may be so. I have no knowledge of New Zealand railways, but I have taken the trouble to communicate with the New Zealand Shipping Company to get their rates, and I have been in touch with the station masters at Wick and Thurso and I have their rates also. What I am saying to the House is an illustration of something which everybody here realises must be true.

The railways used to compete. The courageous investors who put up the money for the railways, and the people who operated them, had to face many difficulties. First they had to face a hostile public opinion. Then they had to overcome the coastal shipping, the canal boat industry and the road transport industry of that day, which was considerable for short hauls between the Lancashire towns and Liverpool and Manchester, and other industrial towns and the docks.

They did all these things and competed with one another. Some people may say they competed excessively, but when I was a young man our railways were things to be proud of. The rates were attractive and people could afford to travel. Yet 10 days ago I took my wife to my constituency and the fare was £20 return. How many people can afford fares like that? Of course that is the passenger side, which we are not discussing tonight, but it is symptomatic of the disease of high expenses and high unit price.

Some people think that is the way to get it back instead of by having better filled trains and encouraging freights to flow. Who is responsible for casting half a million additional C licences on to the roads? British Railways. I can speak of this from experience. I had to go and buy lorries for a little coal mine because we could not afford to send the coal by rail. It pays to have a C licence, otherwise people will not enter the transport industry. That is a thought to bear in mind. None of us wants to be in the transport industry, but we are forced into it by mounting charges. We can run these vehicles one way and bring them back empty in competition with British Railways and make a profit.

It is a wrongful situation. The railways are put there for our benefit, and we must use them.

What is the immediate effect of this increase? My right hon. Friend the Chancellor of the Exchequer made a timely speech in Glasgow a fortnight ago when he called upon everyone to produce more, to do it more efficiently and to work harder. Every one of us on all sides of the House will applaud him for that. He said that unless we do so we shall be up against it, because Western Germany and Japan are coming back with a rush and we are meeting fierce competition in our export markets. We are no longer enjoying the seller's market which prevailed after the war and we have to go and earn our own livelihood. The Chancellor was quite right in telling us to do that but, a few days later, 10 per cent, went on to all the freights. Will that not add to the cost of exports? Will that not add to the cost of living?

Speaking as an old accountant, I say that there is no costing system known to mankind which could justify the long-haul rates from London to the north or vice versa. Every railway company expert will say that the major costs are terminal costs, incurred at the centre of our great capital structure in the marshalling of the vehicles, filling them, getting the trains together and so on. The movement costs are relatively small. In the days when there were 300 private railway companies naturally every company wanted its pound of flesh. I do not find fault with that.

Even then the rates were much cheaper than they are now, but now the railways belong to us and this system prevails. We are still without a price list and we must be one of the few industries without one. We were promised one in 1947, but we have not got it yet. We are on the old pre-war price list plus 150 per cent.

I shall not divide the House tonight—[HON. MEMBERS: "Yes."] Oh, no—

I am explaining this now so that the other side of the House will realise that we are not sailing under false colours. We are very proud to support the Government in office today. But no one appreciates ventilation more than the Government, and I think the public will do so also, and the great trade unions too. Maybe, as a result of this ventilation, the things that I am seeking for the benefit of my constituency will result. And I am speaking not only for the Highlands but for Britain, because this is not a parochial Highland problem but the problem of Britain. It is question of using our railways properly instead of keeping them under-used and idle in many cases, while our roads are overcrowded and dangerous. And who pays? The ratepayer and the taxpayer.

Forty years ago I remember coming down the North Road by car or bus. Today I would do anything to avoid it. It is a road railway, a place of danger. All our main roads are similar, carrying great engineering products frequently extending half-way across the road, heavy six and eight-wheeled vehicles biting into the road in the heat of a summer's day. Is that right? [HON. MEMBERS: "No."] Why are they there?

It was hon. Gentlemen opposite who introduced the system which put up freights. It was they who came seven or eight times to the House, whereas this is the first that this Government have done it. If there is blame, it rests fairly and squarely on the party opposite.

In conclusion, I say how proud everyone has a right to be of our railways. I left here a few nights ago on a Queen Victoria train, the 7.20 from Euston which you, Sir, may remember? I remember it when I was young. After leaving a full day's work in London behind me, I boarded that train at 7.20, had a meal on it, slept on it, and at nine o'clock in the morning, after travelling through heavy snow, frost and blizzard, we came into Inverness on time. If that train ran in America every schoolboy would know it. It would have been named "The Royal Highlander" like their "Yankee Clippers" and their "Senators," and so on. But here nobody knows it, and our Commissioners are very reticent about it.

We can do these things. There is so much we can do if we make travel attractive to the people and make it attractive to goods instead of driving them on to the roads. I appeal to my right hon. Friends, who are governing this country so well, to say to this Commission, "Put your house in order."

8.29 p.m.

I beg to second the Motion.

My hon. Friend the Member for Caithness and Sutherland (Sir D. Robertson) has made out a very impressive case indeed for not having any further increases in freight charges. Like my hon. Friend, I have no intention of treating this problem from a purely parochial point of view. If, as I am sure they do, the Government want to see a more even balance between town and country in the North of Scotland this sore and serious question of freight charges must be tackled immediately and with determination.

I do not expect the Minister to run the railways, but the method of continually coming to the Minister for permission to increase charges is certainly the wrong way to go about it. It will not get the railways out of their difficulties. If we are to relate this problem to wage increases we should remember that the railwaymen themselves agreed that if they were awarded the recent increase they would see that the railways were run more efficiently. Surely it is right therefore, to ask the Minister to see that the promise which the railwaymen made is carried out. Certainly, these increased charges do not encourage greater efficiency.

Would it not be possible for the Minister to say that he will not agree to any further increases until the railways have issued a price list? Trade is being lost at present because it is impossible for traders in the North to calculate the incidence of freight costs and to quote prices to people who intend to buy their commodities unless they have some form of price list on which to work. When the proposed increases were announced the town clerk of the burgh of Invergordon in my constituency wrote to the Minister pointing out the

Further representations were made at a meeting of the Easter Ross Branch of the National Farmers' Union on 14th March, which was attended by some of my hon. Friends and, also, I believe, by the hon. Member for the Western Isles (Mr. M. MacMillan). I was not present, but I have had a letter from that branch which states that the district traffic superintendent

I should be most interested to learn of the justification for any such statement. It is in vivid contrast to the practice everywhere else. I will gladly follow up any suggestion which my hon. Friend has to make to the effect that there might be an exception in Easter Ross, although I cannot really believe that that is so.

I am merely quoting information which was given to me. I say that the suggestion that special freight rates should be negotiated by individuals is impracticable. How can we expect small farmers and traders in a scattered area like the North of Scotland to negotiate individually? I hope that my right hon. Friend will be able to make it clear that I am wrong in this respect.

It was stated in paragraph 4 of the Cameron Report:

My hon. Friend mentioned seed potatoes, one of the most important commodities grown by farmers in my area and the basis of a very important trade in Easter Ross. Before the present increases were agreed to, trade was being lost. I have here a letter from a trader in my constituency, who says:

The Easter Ross farmers are near the railway, but what happens in the areas which are more remote still? I am sure that the hon. Member for the Western Isles will agree with me in this, for the people in his islands are in a far worse position than my people on the mainland of Easter Ross.

I could give the House the innumerable instances, but I will content myself with one example of what I mean. Cement costs £4 10s. per ton for transportation from Loch Carron on the mainland to Applecross, a distance of 23 miles, and that is in addition to the freight charges which are payable for transportation to the railway stations.

There are many factors which are responsible for what we in the Highlands have for many years called "the Highland problem," and we fully appreciate that. The question of freight charges is one of the most acute, and is responsible for the decrease in population in our rural areas. Apart from the direct in- crease which traders have to bear in these areas, we have another problem, which is the incidence of the Purchase Tax on freight. The incidence of Purchase Tax has increased the cost of freight, because that cost is added to the basic price before the Purchase Tax is arrived at, and, therefore, the higher the freight the higher the tax. That does not encourage people to come to develop light industries in the Highlands, and this is a problem to which I think we are all trying to find a solution.

One firm in the north of Scotland bought goods from London only to find that the freight charged was one-third of the legitimate profit on the resale of the goods, and that sort of thing does not encourage industry in these areas. Many commissions of inquiry have issued reports on this question, and the problem has been pointed out for many years, but there is now a much deeper feeling on this question in the Highlands than I think Ministers and Members of the Cabinet really appreciate.

I will, therefore, ask the Minister to make a start now, and at least agree with one of the recommendations of the Cameron Report which is contained in paragraph 33, by means of which longdistance transport would be made relatively cheaper by the introduction of further "steps" of a tapering rate for, say, 150, 200 and 300 miles. If that were done, it would certainly help to give some encouragement to people to believe that the problem was really being tackled, because they are virtually being taxed out of existence by the burdens which they have to bear in the remote areas.

The problem must be tackled, and it is important for us to do everything we can to enable the people in the rural areas to stay on the land which they love, where they were brought up, but on which these tremendous burdens are causing serious depopulation.

8.43 p.m.

Most hon. Members on this side of the House, and I am sure many on the other side, who may, however, qualify their sympathies in the matter of voting, probably agree with what has been said by the hon. Member for Caithness and Sutherland (Sir D. Robertson) and the hon. Member for Ross and Cromarty (Mr. John MacLeod).

It is generally felt that the Highlands have many special problems, but that no problem is so vital as that of transport. That has been recognised by Parliament, and the Highlands have never lacked in this House any amount of patience and courtesy on the part of other hon. Members living far away from the Highlands; but, when we get to the point of action, that sympathy, and all the other good qualities exercised by our colleagues here, which we must appreciate are of little avail.

We have to get beyond the point of sympathy to the point of action, and what we really want to know—and mean to know—is how the Highland communities and the country as a whole can be helped to a solution of these special problems by some special assistance to meet the additional burdens which these transport charges have imposed upon them.

I was rather sorry that the hon. Member for Caithness and Sutherland used all that very useful steam which he worked up for heating instead of pulling, when he indicated that he was not going into the Lobby on this matter. It is all very well to talk up to the point of saying that something should be done, but the hon. Gentleman himself will have to go into this matter in a much more practical way than merely by talking about it.

We have all talked for many years on this subject, although some of us less successfully. Perhaps we shall get a lead tonight. We shall follow the hon. Gentleman the Member for Caithness and Sutherland. I would rather follow him than lead him because I want to be quite sure that he goes right on. I only hope that we shall have a little locomotion as well as commotion.

I should like to set the hon. Gentleman's mind at rest on this point, not only for tonight but for all the other nights on which I shall be in this place. I shall be on this side of the House supporting the Government. I was not elected to attack the Government; but I believe, as I said earlier, that ventilation of the matter is important.

The hon. Gentleman was not elected to support this Government. Tonight he is moving a Prayer which might very well destroy the Govern- ment if it is carried in the Division Lobby. He can make up his mind where the contradiction lies; but I assure him that if he is to represent the Highlands he will certainly have to fight the Tory Government all his days. I am sorry that he does not intend to divide the House and that we shall not have the opportunity of following him into the Lobby.

In carrying out his attack upon these Regulations, the hon. Gentleman is afraid to attack the Government although the situation has been created by a deliberate act of Government policy. These railwaymen's wage increases were long overdue. I think that has been agreed on every side of the House, and I do not think one voice will be raised against it. The hon. Gentleman sympathises with the increases but thinks railwaymen should have to work a wee bit harder, like the shareholders of British Railways. What will happen if this situation arises again? The Transport Commission will have £7 million less.

It is the surplus last year of the Transport Commission. I hope that the hon. Gentleman will not dispute that.

I want to know how the hon. Gentleman arrives at the figure of £7 million.

The Commission has indicated that £7 million is roughly the profit from British Road Services. With the hon. Member's general argument I am in general sympathy, but he failed to attach any blame to his own Government on this issue; indeed, he has guaranteed to them that he will not in any way attack them. However much they may increase freight rates in the Highlands the hon. Member will always support the Government. He will pray against them, but the Prayer will halt somewhere around the peroration. He cannot get away with that.

The hon. Gentleman is fortunate in having a constituency which is coming into better times. I hope that he has thanked my right hon. Friend the Member for East Stirlingshire (Mr. Woodburn) and the memory of the late Sir Stafford Cripps, who started the big development in all these things. They would not have been set up under a Tory Government, and they are coming to fruition thanks to the work of the previous Administration. I hope he is grateful for that. If he will not attack the Tory Government, perhaps he will at least be careful what he says about their predecessors.

Let us look at the effect of these increased charges on agriculture in the Western Isles and Ross and Cromarty. Take the example of seed potatoes, given by the hon. Member for Ross and Cromarty. That is a specialised and very valuable branch of agriculture in several Highland constituencies. The chief buyers are in Lincolnshire and in certain of the other English counties.

When there is a complete free market in agriculture, which we anticipate when the Ministry of Food is completely destroyed and when the guaranteed prices and guaranteed markets are abolished by this Government, we shall have the situation that the buyers from Lincolnshire will be able to adjust the price which they offer to the seed potato producer to the freight rates as they increase. In other words, they will offer lower and lower prices in the face of ever-increasing transport charges.

That is happening already, but at least we have at this moment the Ministry of Food buying part of the potato crops. When the Ministry goes, there will be no assured markets or prices. There will be what the hon. Member for Caithness and Sutherland calls freedom, and the logical consequence of that freedom, as was pointed out by the hon. Member for Ross and Cromarty, will be the end of the seed potato industry in the Highlands. That is the Government's contribution to that part of the Highlands' agriculture.

These are all acts of deliberate Government policy. First, the robbery of the Transport Commission on its profitable side, then the destruction of the Ministry of Food and of guaranteed markets and prices for agriculture, and, along with all this, the general attack upon the cost of living and the so-called freedom which the hon. Member for Caithness and Sutherland is so proud to flaunt, especially when he is talking to agriculturists. As for his reference to pre-war rights and to how much better things were under that sort of freedom, if he went to any shareholder of any of the railways in the days before the war he would find that only the Great Western Railways was paying any dividend at all in 1938 and 1939.

I always thought that private enterprise measured its prosperity in terms of its dividends. Surely the hon. Gentleman cannot say that we took over a prosperous industry and service and ruined them. What we took over was a service which was nearly bankrupt, which was saved largely by the war, and which is now being reconditioned as well as run by the Transport Commission and the nation.

The Minister and both parties in this House will have to face the time when we can no longer pass on every increase in costs—whether it be in wages, coal, or in any other way—to the freight charges, and thus to the customer. The time will come when the traffic can no longer bear this increasing burden of freight charges. We as a House of Commons should really be looking ahead to the point where it will be quite impossible to pass on any more increases to the person using the railways. At that point what the hon. Member for Ross and Cromarty anticipated in connection with seed potatoes will happen in that area as a whole.

Already, a great deal of freight is passing from our railways to the roads. What will happen under the new arrangement—or disarrangement—I do not know, but, unquestionably, the railways are pricing a tremendous amount of possible freight on to the roads. A point will be reached where we can no longer pass the increasing costs which the railways have to bear—whether as a result of wages, fuel or all the other things—to the consumer and customer. The traffic will bear so much and will then cease completely. Surely it is better to arrive at an arrangement whereby concessions can be made, even at some financial loss to the railways, rather than to lose the traffic altogether and get no revenue at all.

How that can be done is a matter for experts, and railway economics, I know are a complex branch of economics. Those who are responsible for dealing with these problems may even now be working out a solution. If they are I would like to know what it is. I really wish that one party or the other—or both—would tell us what is to happen at that breaking point where no longer can the traffic be expected to bear increased freight charges. That is what every one of us in the Highlands is anxious to know.

The B.T.C. never wanted a subsidy. At the same time, it has enjoyed a certain degree of subsidy because of its 49 per cent, interest in the MacBrayne Steamship Company. The B.T.C. has not the management of the Company—it is directed by shipping directors—but it has a 49 per cent, holding in it. To that extent I have no doubt that it can be said to be already in receipt of some subsidy. Are we or are we not to apply a subsidy as a part-solution?

The railways and the Transport Commission will tell us, as they often have, that they cannot be expected to subsidise all sorts of claims and interests in the Highlands or anywhere else. Perhaps they are right. But we cannot leave it at that and see the railways dying in the Highlands through lack of traffic which would be available if reasonable rates were offered but which cannot afford to go by rail any longer and must go by road or die out altogether.

I am really completely at one with hon. Members who have spoken about Highland agriculture. I will not say for how many years—I do not want to be partisan or controversial—but for the past number of years the Highlands have enjoyed a greater measure of agricultural prosperity than they have known before. Now there is again anxiety and worry, and they are again coming to the point of financial loss. We are anxious to know that the Government have a policy which can be expressed in some form of helpful action.

If there is not yet a concrete policy we must ask the Minister of Transport and the Government what the Government's policy will be. There cannot be a policy for all the Highlands unless, of all things, there is full Government responsibility for transport. I hope that we shall have a statement from the Minister tonight on that—I doubt whether we will—and if he refers to the B.T.C.—

Perhaps he will do both—just as his hon. Friend managed to attack the Government without hurting it.

I hope he will not stop short at offering us sympathy. Are we to have a statement on how the Highlands and Islands are to be relieved from the ever-mounting burden of freight charges? If so, are we then to have action on that statement? I wish he could say "Yes" now. We can give him a few minutes if he will say "Yes" later. Whatever differences may exist in this matter among hon. Members on both sides of the House and on the sidelines, in the Liberal Party, we are all agreed that it will be quite impossible to sustain the population of the Highlands and Islands, with their economic activities and strategic and other contributions, unless something very definite is done very soon to relieve the burden of transport charges in that part of the country.

9.0 p.m.

I do not want to follow the hon. Member for the Western Isles (Mr. M. MacMillan) on the subject of seed potatoes, because if I talked about Scottish seed potatoes I might be doing myself harm as a grower of Northern Ireland seed potatoes, which we try to sell in competition with the Scottish product. The British Transport Commission is not wrong in increasing freight charges, because it has a duty to the taxpayers to run its business as economically as it can and to put as small a liability as possible on to the taxpayer.

The remote areas are the places which suffer most if freight charges are increased. I believe it is right for the Government to follow the policy which they have followed lately in agriculture in Northern Ireland, to help it over this one very difficult problem, which would otherwise put our farmers at such a disadvantage that they would be out of business altogether, but I sometimes wonder whether we can run a nationalised railway system and allow free competition on the roads at the same time.

Northern Ireland has a nationalised system of road transport and we find, too often, that empty trains are running side by side with full buses on the roads. It makes one wonder whether it is a wise policy in Northern Ireland, where railway lines are being closed down altogether. Sooner or later we have to face the fact that if we go on as we are now doing, our people and industry will move nearer and nearer to London. This problem exercised the minds of many people before the last war, when they were considering the strategic aspects of a bombing raid on this country. If it was important then, it is surely a thousand times more important in an atomic age.

Some Government, of whichever political complexion it may be, will eventually have to face this problem. It would be a great help to set up a committee or an expert organisation to re-examine the problem in the light of the present situation. The only way to overcome this difficulty is to adopt a flat-rate system of transport, unless we are to sit back and watch our population and industry concentrate nearer and nearer to London, when the remote areas will be at such great disadvantages that they will hardly be able to exist.

When wage rates are laid down by the National Wages Boards it is no good saying to the people in the remoter areas, "You must have less wages than people in the towns," because in many cases the cost of living is higher in remote areas than in the towns. I should like to give one example, even if it is a luxury example. If one buys a new motor car in Northern Ireland one has to pay £22 more for it than one would pay in Great Britain, because the customer has to pay the freight charge which is incurred in bringing that vehicle over to Northern Ireland.

How often do we see advertisements of things we want to buy that say, "Carriage paid to the nearest station in Great Britain," but if one inquires in Northern Ireland about these things the people concerned go into a little office at the back and on returning say it will be so much more for transport. This is a problem which affects Wales just as much as all the other remote areas.

Yes, but I have an interest in Wales. I believe some committee should be set up to consider these things. I would say to my right hon. Friend, do not get up and say "No" to everybody, but say that some serious examination will be made of this problem.

Is the hon. Gentleman aware that there has been commission after commission over many years and that they have all made the same recommendation, and the solution is co-ordination of transport?

I do not know when the last sat, but if there has been one that has considered present-day conditions, perhaps all we need do is to look up its report.

Is the hon. Gentleman aware that in Northern Ireland there was a commission only a few years ago?

I know what happens there. These problems must be faced in the light of conditions today and in the light of the possibility of atomic war. I believe that if we could get a flat rate for transport it would be a great help to the remote areas, although it might be a slight disadvantage to areas near to London, areas in this part of England, it is only fair to say.

9.7 p.m.

Conditions in the country of the hon. Gentleman the Member for Armagh (Mr. Harden) are like those in my constituency in this respect at least, that not only are there these freight charges imposed by British Railways but there are also the costs of a considerable sea voyage into the bargain. Like the hon. Member for the Western Isles (Mr. M. MacMillan), I have no railways in my constituency, but my constituency is certainly very much affected by this further increase in costs.

I do not want to speak at length on the subject because the background of the case has been explained ad nauseam. Even in the short time in which I have been a Member of the House I have taken part in many debates and initiated debates in which hon. Members from Scotland, Wales, the English West Country, and Northern Ireland have pointed out the declining rural population and handicaps to agriculture, and how the cost of transport affects the amenities of the rural areas, hinders agriculture and fisheries, and the provision of new industries.

Hon. Members from all over the country time and again have explained how these difficulties are largely caused by freight charges. As the hon. Member for the Western Isles said, we always have a very sympathetic answer, whoever speaks from the Treasury Bench; but then, in due course, the freight charges rise again; then we all come back to complain about a declining rural population, the fall in agricultural production, the want of new industries that are not being set up, the need for the establishment of a Development Area, and so on; and then we have another increase in the charges.

I shall make only two points. The first is about the railways' position. I would go a long way with the hon. Member for Caithness and Sutherland (Sir D. Robertson). Although I am one who knows very little about the inner workings of the railways I think they should, and hope they will, improve a great deal, produce their charges scheme, go out for traffic, provide more and new rolling stock, and so on. I think that they are to some extent handicapped by a hang-over from the last century, and have suffered from freight charges which bear no relation to the costs involved, and from various other restrictions placed upon them. I very much hope that the House will set them free from some of the restrictions under which they still labour. We all know that such obligations as safety fencing the railways impose a considerable burden upon them.

In defence of the railways, I would remind the House that every attempt to close a branch line or a station always arouses, quite naturally, protests from hon. Members. I have no doubt that if I had a railway in my constituency I should make a protest if a line were to be closed and a very convincing case for keeping every branch line open and every train running, but in this motor age the railways must be allowed to set their house in order, and they may be compelled to close down lines and stations. But if they are to keep lines open—and clearly many of them must be kept open—they ought to try to use them to full capacity. The overheads are running all the time, and to run an odd train here and there on the line is futile.

May I intervene on this question of running occasional trains along the line? Some of us know something about it, because we have worked on the railways. Is the hon. Member's argument consistent, when he was a party to the denationalisation of long-distance road haulage? The Transport Commission could have used those services to help keep its freight charges down. The hon. Member cannot have it both ways.

I do not think we can go into the question of denationalisation. This is a question of either raising or lowering the freight rates.

On a point of order. I am sorry to interrupt the hon. Member for Orkney and Shetland (Mr. Grimond). Obviously, there is a connection between the increase in the freight charges and certain money lost to the Transport Commission through the denationalisation of long-distance road haulage. Surely denationalisation must come into the reckoning.

In as far as it comes into the reckoning on the additional charges, it will be in order, but merely to have a discussion on the denationalisation of transport will not be in order.

Further to that point of order. It is quite clear that in as much as the policy affects the necessity for the Regulations it would be in order to discuss them.

We cannot have a general discussion on nationalisation or denationalisation or, indeed, on the development of the Highlands. We are merely discussing the charges.

I am sorry to interrupt the hon. Member for Orkney and Shetland (Mr. Grimond). I do not normally raise points of order and interrupt speeches if I can help it. I discussed the question of nationalisation and denationalisation of part of the assets of the B.T.C. and its impact upon freight charges and I was not stopped either by Mr. Speaker or by you, Mr. Deputy-Speaker.

I came in towards the end of the speech of the hon. Member for the Western Isles (Mr. M. MacMillan) and I thought that part of his speech was going rather wide.

I am the one person who has not been able to discuss denationalisation, but I now hope to return to my vary consistent argument, for I do not believe that nationalisation or denationalisation has a very great deal to do with whether the railways can usefully run branch lines or not. It has a lot to do with a great many other things.

I want to pass to the wider question upon which several hon. Members have touched, particularly the hon. Member for Western Isles. There is a much wider transport problem in this country, and I do not think it is one which can be thrown wholly on to the shoulders of the Transport Commission. It primarily affects the remote areas and it is primarily what in these days is called a social problem.

In my view, if assistance is to be given to transport in the remote areas to enable people to stay there, to balance the population—as the hon. Member for Armagh (Mr. Harden) said—to enable agricultural production to rise and light industries to be encouraged, then I would rather see it done by a fair and square charge on the Exchequer and not by an indirect charge on other users of transport. I do not know whether it would be in order to go into the question of how it might be attempted, but I make that my second main problem.

In my opinion, there is a much wider and a national issue behind the matters which we are discussing tonight. If it is argued that it is highly undesirable to assist in any way with subsidies to British Railways, I can only say that it is already done in the case of MacBrayne and, in Northern Ireland, in the case of agriculture. It has been accepted that some special assistance has to be given to such areas. There are other areas in the country similarly placed—the far north of Scotland, Wales, the West Country for all I know—where the same problems arise. I think it is a national problem.

I very much hope that this will not be just another step in the same old journey, but that we shall hear from the Minister tonight that, whatever happens to these freight charges and these Regulations, he is seized of the problem and will give some indication that the Government will take action on what is a general problem which is having a disastrous effect on the agricultural and rural population in some of the remote areas.

9.15 p.m.

I have listened with keen interest to the speeches that have been made for two reasons. In the first place, I wanted to know what principle hon. Members opposite had in mind in putting down a Prayer against these additional charges; and secondly, I wanted to know what their positive proposals were for remedying the difficulty about which they complain. So far as I understand the trend of the debate, we have not had any clear answer on either of those issues.

The hon. Gentleman must be fair. I suggested the recommendation of the Cameron Report, which is that the "taper" should be stepped up.

I shall come to that point later.

It is rather significant that each time a nationalised industry proposes to increase its charges, hon. Members opposite put down a Prayer to annul the increase. I do not remember one occasion since the present Government have been in office when any Tory Member has complained about increased charges for any private enterprise product. Why is it that when it comes to a nationalised industry Tory Members always pray against charges, but that there is never a word of protest from any hon. Member opposite when private enterprise puts up the prices of various commodities essential to the housewife?

Will the hon. Gentleman say under what Parliamentary procedure we can protest against them?

I am a little surprised that the hon. and gallant Member should put that question to me. After all, he is a Temporary Chairman and also a Chairman of Committees. If he does not know the procedure of this House well enough to know how he can do that, then he is less intelligent than I am prepared to give him credit for. The hon. and gallant Gentleman cannot escape his responsibility in that fashion. If he were really concerned about increased prices, whether by nationalised industries or private industries, every hon. Member who knows the procedure of the House knows perfectly well how he could deal with the matter.

The hon. Member for Caithness and Sutherland (Sir D. Robertson), who raised this Prayer—and I give him credit, because I have listened to him many times on this issue and I understand his point of view—complains—and I am using his figures, although I do not necessarily accept them—that railway charges in the Highlands are roughly 153 per cent, over pre-war. What a delightful time the working-class housewives of this country would have today if private enterprise products were only up 153 per cent, over pre-war.

I could take particular pains to draw the attention of the House to the fact that this is a service industry and not a fabricated industry, and there is all the difference in the world between the two.

We will come to that. There is all the difference in the world, the hon. Member says, between what he calls a fabricated industry and railways. I will tell him a few of the differences. The Transport Commission would be delighted if today it could buy timber, steel and copper at 153 per cent, over their pre-war prices. I could go all through the gamut of things which are necessary to run railways and which the Transport Commission has to buy from private enterprise. It is a question, not of 153 per cent., but of 200 per cent., 300 per cent., and in many cases much more.

Let us be honest about this. How, then, can British Railways, who find themselves in the position of having to pay these extra prices for materials which they have to buy, at the same time be expected to run transport at—I do not know what price hon. Members opposite would wish; they have not said what price they want. The simple fact is that if all the time the Transport Commission is compelled to pay highly excessive prices for private enterprise products, if there is to be any sort of economics in the running of the railways the Commission's charges inevitably must go up.

As was said earlier, nobody has complained about the recent increase awarded to the railway staffs. What, then, do hon. Members opposite really want? I wish they would try to get this clear. Transport is not something which should come last. It is transport, surely, which in so many cases gives the product its value. The hon. Member for Aberdeenshire, East (Sir R. Boothby), I imagine, will take part in the debate.

I shall be ready to listen to the hon. Member. He will tell us all about Aberdeen kippers and herrings, for example. Aberdeen herrings have little value at Aberdeen. It is when they are transported to London and the big centres of population that they have their value.

The simple fact is that if Aberdeen fishermen are to thrive, they depend on the population of London and the big cities to eat their herrings and the rest. Why, then, should not the herrings of Aberdeen bear their fair share of transport charges, whatever the fair share may be? Hon. Members opposite do themselves less than justice when, every time there is an Order for an increase in freight charges, they oppose it instinctively and rarely put forward any positive suggestions.

I can understand my hon. Friends on this side, and I have some sympathy with their point of view, when they argue for assistance to be given for freight charges from Scotland. But surely, if there is one thing which distinguishes a Tory from any other person, it is that the Tory believes that the motive power of private industry is private profit. If I understand Tory philosophy, the Tory attitude of mind is that industry should be run for private profit. That is why the Minister took road transport out of the hands of the Transport Commission and gave it back to his friends in the road haulage industry. He believes that it is right that industry should be run on the basis of private profit.

Yes, no one expects him to restore a municipal sewerage works or anything of that kind. It is only private enterprise that they want. That is the only basis in which they think it perfectly right and proper for industries to be run. Yet, when it comes to transport, it looks to me from the sort of argument we hear again and again that hon. Gentlemen opposite are perfectly willing to allow the railway transport system or State-owned industries of any kind to be run at a loss no matter who suffers from it.

The hon. Member accuses us on this side of the House of saying nothing constructive. Surely if my speech conveyed anything, it was that turnover is the answer to more traffic. How can the hon. Member account for three-quarters of British goods being carried on the roads? Once they were all carried by the railways.

This is always a most interesting line of argument. The hon. Member was good enough to tell us he was an accountant. For some years I was a railwayman, but I would not be disposed to tell an accountant how to do his job, and I am never quite sure that an accountant is the best person to tell railway people how to run the railways. I still do not believe—

The hon. Gentleman, for example, talked about British Railways not boosting a particular train to the Highlands. I am with him all the way. I wish that British Railways would do many more things like that, and I have told them so. I hope they will, and in those things we can afford to be critics. Where I part company with hon. Gentlemen opposite on this issue is their demand that British Railways should carry goods from Scotland, not at the new increased rate, or even at the last one. I do not know what rate they want the charge to be.

What about asking the National Assistance Board about rates?

Certainly, as far as they were concerned they would be perfectly willing to accept the transport of goods from Scotland to England at less than the economic rate.

There may be a case for them. When my hon. Friend the Member for the Western Isles (Mr. H. MacMillan) postulates that case, I am in sympathy with him all the time. I believe he may have a case. The hon. Member for Armagh (Mr. Harden) made something of a similar case. I believe there may well be something in it.

I am entitled to believe that because, as a Socialist, I do not believe that private profit should be the motive either of privately run industry or of State industry. As a Socialist I believe that it is a possible line of policy that some of these industries, remote from big centres, might very well have the assistance in freightage charges. If that be so, then hon. Gentlemen opposite must be honest and face up to the consequences. Yet not one of them tonight has said a word apart from the hon. Member for Ross and Cromarty (Mr. John MacLeod)—and he did it more by implication than by a direct statement—about a Government financial contribution to British Railways in order that goods from the Highlands can come south at less than economic rates. Is the hon. Gentleman prepared to urge that on the Government?

First, I want to see the railways run, as the railwaymen promised, more efficiently and then see how we get along.

I want to be kind and generous. There are many people in this country who might be disposed to say—I am not one of them—that if the constituents of the hon. Gentleman made their agriculture more economic they could face up to the transport rates a bit better. Therefore I ask him to look at home first, to get his farmers to make their agricultural industry in his constituency a little more efficient, and then they might be able, or at least be willing, to face up to essential transport charges. Hon. Gentlemen opposite must face up to this and not one of them yet has done so. I shall listen with great interest to what the hon. Member for Aberdeenshire, East will have to say. He may plead that freight should come from Aberdeen to London at less than the economic rates—

He says, "Hear, hear." I shall listen, as I always do, with great interest to know what is his positive line. Is he willing to ask the Minister to persuade the Government to make a subvention to the Transport Commission in order to give him what he wants?

I shall wait and hear, but I am doubtful whether I shall hear what I want to hear from the hon. Gentleman.

I conclude by saying this, that if hon. Gentlemen want uneconomic freight rates from Scotland to London there are many on this side of the House who will not oppose that objective, but if they are going to do it they must be willing to face the issue, and to get the Government to agree to make some financial concession to the Transport Commission in order to make it possible. The railway workers of this country have been living on low wages far too long with all the serious implications involved.

I have warned the House before of the loss of highly skilled railwaymen, which I deplore. It is simply because the wages and the conditions under which they work are not equivalent to other industries. This is not through any fault of the Transport Commission, apart from the fact that it has not the revenue, but because of the constant pleas from all over the country that we should meet every charge except the most legitimate one of transport charges.

If hon. Gentlemen opposite have not the courage to take this Prayer to the Division Lobbies, at least let them have the courage to persuade their right hon. Friend to do the only thing that will make it possible to give them what they want.

9.33 p.m.

The hon. Member for Birkenhead (Mr. Collick) made a very fair inquiry of hon. Members on this side of the House and I shall seek to answer it as best I can.

I welcome the chance, afforded us by this Prayer, of being able to discuss the proposed increase in railway charges, but I shall not vote against the Government on this issue for two main reasons. [An HON. MEMBER: "The hon. Lady did so in 1950."] First, because, although extremely important as this question of transport is, it is not as important as are the great questions of foreign affairs and defence, on which all of us may well feel it worth risking a Labour Government in office. Secondly, because the hon. Member for Birkenhead was quite right in saying that if we imagined ourselves transformed into the being of the Minister of Transport and Civil Aviation, and in that intriguing situation found ourselves confronted by the Transport Act, we would know perfectly well that the Act lays down that the railways have to pay their way. If we have higher wages and costs all over again these have to be met.

Coming as I do from a constituency in the north-east of Scotland, I am very glad that the Minister has gone as far as he can to limit this increase in freight charges to a 10s. a ton maximum, but this Prayer gives us an opportunity to go into the whole question of how the railways are run and how they can be run better. The first question which we must all ask and which hon. Members have already asked in the House is whether any economies can be made. Apart from the administrative economies, there are some very human economies which it is a very diffi- cult and delicate task to make. Various hon. Members have already referred to some of these. Those who use the railways a great deal know perfectly well from what is said to them by people who have years of experience of serving on the railways that many of those people are of the opinion that they have less responsibility now and that they could and would do more work individually if they were given the chance.

We all realise that it is a very delicate and difficult task to try to shift a man from one job to another. This is where the Ministry of Labour comes in. We are entitled to ask the Minister of Transport whether the Transport Commission is making a determined effort to suggest either that men could be shifted to other industries or that there should be less recruitment to the railway industry. Surely it is not economical that too many men should be doing too many jobs which one man is able and willing to do himself.

The noble Lady has made a rather serious statement. When a statement like that is made the House would be indebted to her if she gave chapter and verse for it.

I should be quite prepared to refer to the individuals concerned, but knowing that it is possible that they might get into trouble—[HON. MEMBERS: "No."]—I had better not make a statement.

Every hon. Member who uses the longdistance trains regularly will agree, if he is fair, that there are people who say that they would undertake more jobs and could do them successfully and would like the responsibility if they were allowed to undertake them. [HON. MEMBERS: "Where?"] That is one economy and we are entitled to ask the Minister whether he is prepared to tell us what is the policy of the British Transport Commission on that question. I am sure that the trade union movement would be only too willing to play its full and constructive part in doing its very best to serve the public as a whole.

Is the noble Lady aware that there is ample machinery in connection with the railways which is used by the trade unions to deal with any suggestions of that kind?

Exactly. I am taking the opportunity afforded by this Prayer to try to get the Minister to make a searching inquiry into the economies which are being effected and to ask him whether he will indicate what is being done in this matter.

In view of the fact that the noble Lady is making such searching inquiries into the staff position can she tell us what economies have been made in staffing over the past year?

I am not in a position to make the inquiries. I am using this Prayer to ask the Minister to make inquiries.

Is the noble Lady aware that throughout British Railways today certain work cannot be undertaken because of the acute shortage of locomotive men?

I am not referring to any one particular branch. I am only asking—and I am sure that the whole House is only too anxious to know—exactly what is being done in this vital matter throughout our railway system. Can the railway system in a small island like this ever pay its way? Is it possible?

I was very grateful for the meeting with Sir Brian Robertson which was arranged by the Minister. I had previously met Sir Brian. I was impressed, as I have been before, by his energy, his undoubted administrative ability and his wisdom in dealing with men, and I believe that if anybody can make British Railways a business concern, Sir Brian Robertson will be able to do. I wish him good luck.

I hope the House will bear with me if I now deal with local problems—the Scottish problem, the North-Eastern problem and the problems of the City of Aberdeen. Incidentally, I am delighted to have been called in this debate before my hon. Friend the Member for Aberdeenshire, East (Sir R. Boothby). I shall not repeat the forceful arguments which have been advanced by hon. Members on both sides of the House who represent constituencies north of the Border about the crippling freight charge rates. I merely say, making due allowance for time-lag in consideration after the war, that we have waited six or seven years for the charges scheme which it has often been said will be put before us. I hope very much that my right hon. Friend will be able to indicate when the heads of the charges scheme will be placed before Parliament so that we can consider how they will affect the areas in which we are interested.

Besides economies, there is also the matter raised by my hon. Friend the Member for Caithness and Sutherland (Sir D. Robertson) in his very stimulating speech, where he said that more attractive rates ought to be provided by the railways. There are two points arising out of that. First, it seems to me—I hope I am right—that the Minister will be in a position to say quite definitely tonight that the country can expect a very much more generous tapering charges scheme than we have had in the past. Secondly, we all know that every industry has had the right to have special rates following negotiation with the railways. The fishing industry in the port of Aberdeen is at present in consultation with the railways. We know that the industry in Grimsby and Hull has a reduction of as much as 40 per cent, in the freight charge for its fish on the understanding that the fish is carried only by rail.

It would be dangerous if the hon. Lady or any of us overstated that part of the case. I went to great trouble with other hon. Members to make sure about the point. I learnt that concessions equal to those given to Grimsby and Hull have been offered where they have been sought and have been operating in the Highland areas for a number of years.

Exactly. I was talking about the policy of the Transport Commission on the two main points which affect the Highland areas. One point relates to an increased tapering charges scheme, which I hope the Minister will announce tonight, and the other to the fact that certain major industries have always had the right to have special rates. But that is only as far as the Commission itself is concerned.

We now come to another matter of Government policy which the Government will have to consider, whether attractive rates and economies combined with the effect of tapering charges schemes and special rates will be sufficient for the areas which are remote from the main market. If they are not sufficient, the Government will come to a very great question—hon. Members are right to raise it, because it is fundamental to the whole problem—and that is: what is Government policy towards the transport system as a whole?

We have had various schemes put forward, of which the first was that there should be a general equalisation scheme, which would involve a subsidy. So far as my own area is concerned, the Aberdeen Chamber of Commerce is about 50 per cent, divided on this issue, because where we have local industries we shall have them facing serious competition from the South. Then, we had a suggested flat rate for certain particular industries, and a flat rate for fish was put forward by the White Fish Authority, but was hastily withdrawn because of the representations which came from the ports of Hull and Grimsby.

What happens next? I understand that, under the system as at present laid down, the Transport Tribunal would have to consider representations from all interested bodies who would be bound to include far more users of the short and middle distance traffic than those of the long-distance traffic. Therefore, it seems to me that long-distance traffic users will always be outvoted.

The question was put to me by the hon. Member for Birkenhead whether we would support a direct subsidy to the railways. As I understand, Sir Brian Robertson, in his position as chairman, is against a subsidy at any price, because he believes that he will be able to make the railways pay as a business profit-earning concern. If that is so, we on this side of the House must support him, because we do not support a subsidy except in a very special case where a strategic necessity is concerned.

I am grateful to the hon. Lady for giving way. I do not think that Sir Brian Robertson would subscribe to that point of view if, at the same time, he was told that the request of certain hon. Members from the Highlands was to be conceded, namely, that their freight was to be brought from Scotland to England at less than the economic rate.

I am under the impression, and I hope it will be confirmed by the Minister tonight, that Sir Brian Robertson, who is responsible for the Transport Commission, will be prepared to make the effort to make the railways pay without a subsidy, while, at the same time, supporting a tapering charges scheme and special individual rates for certain industries. I believe that he will try to do that, and I hope very much that the Minister will be able to confirm that tonight. If not, we must look at the railways again.

I think every hon. Member in the House will support me in this view. There are two attitudes that we can adopt towards the railways, or two assumptions with which we must agree. The first is that the railways as a whole are a strategic necessity to the country. The second is that for human and defence reasons, particularly in an atomic age, we wish to attract industry to the remote areas. With that view, all of us, will, I believe, agree. If we are all agreed on this assumption that the railways are a strategic security investment, and no hon. Member, as far as I can make out, dissents from that view, the time may well come when, for strategic reasons alone, we might have to consider a subsidy, or whatever we might call it, in particular cases.

I myself do not consider that this principle is in any way a new one. We know perfectly well, that, from the strategic point of view, we keep open uneconomic ports because we realise their necessity to the lifelines of these islands. At this point I would give the British Transport Commission, under the chairmanship of Sir Brian Robertson, a fair chance, to see what he can make of the railways on business lines. We may find that he can go a very long way indeed towards making them a success.

I do not vote against the Minister, but I do not divorce him from responsibility for the Transport Commission, for the reasons that I have already given to the House. In company with many of my hon. Friends and hon. Members opposite, I say that the time has certainly long gone by when ever increasing burdens can be passed on to the general public. I hope that this debate will have been useful and that it will have made it more than plain to the Transport Commission that we can no longer bear this burden, which I can only describe as very much akin to that of the old man of the sea.

9.51 p.m.

The larger and wider issues which have been raised in this debate will probably be dealt with by one of my hon. Friends. Meantime, I should like to comment on some of the points which have been raised about Scotland.

The noble Lady the Member for Aberdeen, South (Lady Tweedsmuir) very cleverly got the best of both worlds. She started out with an emphatic declaration that Conservatives would never have a subsidy on any account and she finished her speech by arguing, also very cleverly, that the railways would have to be considered as part of the defence mechanism of the country, and, on that ground, would have to be paid for by the Government, would have to be subsidised.

I thank the right hon. Gentleman for giving way. I know that he does not wish to misrepresent what I said. I was saying that on principle Conservatives do not like subsidies and that Sir Brian Robertson does not want a subsidy. I believe that he can make the railways pay without it. The only occasion on which we could accept a subsidy is from the strategic point of view.

If the hon. Lady is trying to discuss whether Conservatives like subsidies or not, it is clear that she has never attended an agricultural debate.

My hon. Friend the Member for Wednesbury (Mr. S. N. Evans) could probably give the noble Lady some education on this aspect of Conservative policy. I have no doubt that when the next debate takes place she will make a similarly strong speech against the Minister of Agriculture giving any more subsidies to the farmers, and if that will help her in the North of Scotland I shall be surprised.

A very strong point about subsidies in general was made that before the nation started giving subsidies it ought to consider whether it got efficient industry. When the fishing industry in Aberdeen asks for a subsidy, the Government must see that the industry in Aberdeen is working as efficiently as possible. The fish that comes from Aberdeen can still get a better price than fish from Grimsby and Hull, and it might be that Aberdeen, working its fish industry economically, could sell its fish and make a better profit than Grimsby and Hull.

I repudiate the suggestion that the fish that comes from Scotland is not fresh after it leaves Aberdeen. It always reaches London in a fresh condition. Grimsby and Hull fish can only be sold in London on the backs of the fresh fish that comes from Aberdeen.

That was not even remotely approaching what I said. Herrings were better, immediately after being taken out of the sea. The cost of transporting white fish from Aberdeen has to be added to the charges made and it is not true that it can compete successfully with Grimsby and Hull.

The Aberdeen fishing industry, by getting a halfpenny more per lb. for its fish than either Grimsby or Hull is, I think the hon. Gentleman will find, able to make a profit and to leave a margin on the freight. However, I do not grudge Aberdeen getting a concession from the Minister if it can get it, but when the hon. Lady says that she does not want subsidies and then asks for a flat rate for Grimsby and Hull, she is not being straight with the House.

But the debate this evening goes much wider than that. Road, rail and air communications in the Highlands are the arteries through which the lifeblood of the Highlands flows. It is no use hon. Members opposite suggesting that the Highlands can be run on an economic basis. How can 21 people to the square mile support either the erection or the running of railways? In the hon. Gentleman's own constituency there are only seven people to the square mile.

I ask for a new policy, not only for the Highlands, but for Britain as a whole. The right hon. Gentleman really cannot expect all the plums to be in London, Glasgow and Edinburgh. The rich traffic in some of these places should make up for the poor traffic in other parts, at least until we get to the atomic age.

The hon. Gentleman now confirms what he said. Instead of a clear subsidy, which everybody can understand, he is suggesting that the rich areas should carry the poor areas on the same basis as the Post Office. The Post Office is not run economically in the Highlands, but it is being subsidised by the Lowlands and by the industrial areas of this country. That is the only way in which the Highlands can be run. They can either be subsidised by rich men spending money on hunting and fishing in the Highlands or by the more prosperous parts of this country. As a matter of fact, the Highlands cannot be run as a private organisation at all.

They have had a chance for 200 years. When hon. Members come here to represent the Highlands they ought to face the fact that those parts of Scotland have got to get assistance from the rest of the country. The MacBrayne steamers and transport system throughout the Highlands provide the area with its necessary communications. Anyone who knows the distances that have to be covered in the Highlands knows perfectly well that the Highlands on their own could not support an economic system of railways.

This is a problem which cannot be solved by the Minister of Transport. The hon. Gentleman who said that there ought to be an inquiry into the whole question of how the Highlands are to live, of which transport is only one small part, was far nearer the mark than the idea of confusing the issue by taking 10 per cent, of these costs.

Anyone who has any sense knows that if the railways are to run economically they must charge the proper costs. If they are not to be run economically, then they will have to be subsidised, in which case there should be a straightforward subsidy so that the nation may know what is being paid and why it is being paid.

I quite agree with the hon. Lady that that is something which has to be decided as a matter of policy and not just fastened on to the Transport Commission. Her faith in Sir Brian Robertson is justified so far as doing his job efficiently is concerned, but even tapering charges may amount to a hidden subsidy, and they can only be made if somebody is meeting the cost.

Would the right hon. Gentleman agree that at least it ought to be worked out?

That could be worked out on a comprehensive basis. No part of the Highlands can be served by railway alone. The hon. Member himself spoke about £4 10s. per ton from the railhead at Lochcarron to Applecross. It is not the nationalised railways that charge that.

No. I said that there were many other factors involved, but that the main reason was the state of the roads.

When the hon. Gentleman had an opportunity to help the Highlands he refused. When he had a road organisation working in conjunction with the railways which was to equalise the rates in the Highlands with those in Glasgow and Edinburgh he voted against it in order to hand back the lorries to the people who had to run on an economic basis and charge £4 10s. a ton.

The hon. Gentleman himself helped to bring about the very situation in the Highlands about which he now complains. Farmers need roads, also. All the roads in the Highlands have been subsidised. Hundreds of millions of pounds have to be spent in connection with roads for the hydro-electric scheme and the Forestry Commission. That has to come from the nation as a whole, and it must be part of a comprehensive policy.

I was surprised when the hon. Member for Caithness and Sutherland (Sir D. Robertson) said so little about the Highlands and the difference that the 10 per cent, would make to the Highland people. He said little about the Highlands, but made an economic attack upon the working of the Transport Commission throughout the country. My hon. Friend is much more expert on the economy of the Transport Commission and will no doubt reply to that, but the hon. Member for Ross and Cromarty (Mr. John MacLeod) raised it, and so did the hon. Lady the Member for Aberdeen, South in regard to Aberdeen.

I ask the Minister to say whether there is any likelihood of the question being examined as a whole, because I cannot see how he can settle the Highlands even if he did not charge the 10 per cent. Even without the 10 per cent, the Highlands are in difficulty and the 10 per cent, is, as it were, only an added difficulty to the people there. The question must be settled some day by a comprehensive statement on behalf of the Government as to how far a general Highland plan is being worked out which will make it possible for people to live there and be able to sell their stock in other parts of the country.

We are not dealing here with a general plan for the Highlands, but with the transport charges.

I was about to say that a great deal of the debate tonight has had nothing to do with transport charges, and that the matter could only be settled in some sphere of government other than transport.

When the Minister deals with the transport charges I hope he will be able to say that, however, much the tapering charges—or any other adjustments of railway freights—may be used to help the Highlands, further steps will be taken to bring the whole system of Highland life into a comprehensive picture with some chance of an economic solution.

10.4 p.m.

The right hon. Gentleman the Member for East Stirlingshire (Mr. Woodburn) has dealt at some length with the problem of the Highlands, and the effect of these Regulations and transport charges upon them. He dealt particularly with the question of a straight subsidy, and I shall come to that a little later. It is perhaps not inappropriate that the debate should move from Scotland to Ireland—

And no doubt back to Scotland again. That is the course which Christianity took. This is St. Patrick's Day, and St. Patrick came from Scotland—

Perhaps I can take another opportunity to educate hon. Members on this point.

I should like to make my position clear with regard to this Prayer. Like my hon. Friend the Member for Caithness and Sutherland (Sir D. Robertson), who moved the Prayer, I shall vote for the Government. It may seem slightly Irish to support a Motion and then vote against it. My reason is that the only Parliamentary method of discussing Regulations is by moving a Motion to annul them. I should not wish to see the Regulations annulled, with nothing put in their place, but it is worth examining, and we should be indebted to my hon. Friend the Member for Caithness and Sutherland for affording us the opportunity to do so.

A little over a week ago we had a debate upon the Ulster linen industry, and one of the problems discussed was the economic condition of Northern Ireland. In my speech on that occasion I referred to the high cost of transport and its effect upon the economy of Northern Ireland. I could not pursue the matter then, because I should not have been in order, but I venture to think that I shall be in order in doing so now. The economic position of Ulster is extraordinarily difficult and dangerous, in that we have something like 42,000 unemployed persons, which represents 9 per cent, of our insured population.

The efforts of the Ulster Government to diversify the pattern of its industry and to attract new industries have been repeatedly frustrated by the continuing rise in transport charges. Every time a new Regulation is produced giving the British Transport Commission the power to raise charges, another obstacle is put in the way of the efforts of the Ulster Government to take up the slack of its unemployment problem. This 9 per cent, of the insured population is not a mere statistic but a question of the lives and welfare of human beings.

If we take the case of an Ulster industrialist who is at present competing with a Birmingham manufacturer for a market in London, we find a disparity between the transport costs which each has to bear, and if the charges are raised by a flat 10 per cent, the Ulster industrialist will find himself unable to compete. He may be able to compete now because he has some local advantage, such as a better quality of labour, but with a flat-rate addition to the transport charge he will find himself at a disadvantage.

It is the people who live in remote areas who are subsidising those living nearer to the sources of raw materials and to their markets. Northern Ireland is a very good example of the way in which the burden of high transport costs falls upon a community. It is an even better example than the Highlands of Scotland, because Northern Ireland has neither of the two basic commodities, coal and steel. We have to import both.

The Highlands may be in that position, but if we take Scotland as a whole it is not such a good example as Northern Ireland. We have to import steel and coal. We are very vulnerable in Ulster, therefore.

No doubt the transport system has to try to pay its way. It is bound to under the Act. We should not feel so badly about it if the method of raising the charges seemed to us to be a fair one. However, every rise puts us in Ulster at a greater disadvantage than before vis-à-vis our competitors in other parts of the United Kingdom. For instance, our inshore fishing industry is having the greatest possible difficulty in competing, and I predict that this latest rise of 10 per cent. will be its death knell, because no provision has been made for a flatrate charges scheme. Boats are already being laid up, and they will continue to be laid up. This will be the end of that industry unless something is done.

The second of these three Prayers, the one that concerns the docks and harbours, was put down to give us an opportunity of considering the through rates. It is difficult to estimate the precise effect of these Regulations upon the through rates. Indeed, it is difficult to estimate the effect on them of any of the other Regulations. The method of arriving at these through rates from Northern Ireland to any other part of the United Kingdom is a conference known as the British and Irish Traffic Conference which meets from time to time to settle the through rates.

In some respects these through rates are concession rates, because they have not always gone up in precisely the same manner as the charges put on by Regulations. The total rise has been something like 140 per cent, since the war, as against the 152 per cent, referred to by my hon. Friend the Member for Caithness and Sutherland. Nevertheless, there has been a substantial percentage rise, and there is no doubt that the conference must take into account every increase made through Regulations. There was one occasion when it did not. On this occasion, however, I understand it has increased its charges by 10 per cent, on the through rates with effect from 1st March.

I should like to give some examples of the extraordinary rises that take place. To help solve our unemployment problem in Ulster we have been encouraging boot and Shoe industries. The cost of transport per ton of boots and shoes from Belfast to Birmingham before 1st March was 207s. 3d.; after the 1st March it is 225s. 7d. There is a similar increase on similar goods packed from Armagh to London. The textile industry is one of our basic staple industries upon which our whole prosperity depends, and yet whereas before 1st March linen goods were sent at 181s. 11d. a ton, after the 1st March the rate is 197s. 7d. That is an enormous rise because it is a percentage rise on something which is already far too high.

There is a curious fact about through rates which I invite my right hon. Friend to consider, and it is that the British and Irish Traffic Conference, in fixing through rates, is not bound by the limitation contained in Statutory Instrument No. 157 of 1954—that is, the 10s. limitation.

Perhaps I may give another curious example. In Ulster, part of the textile trade is concerned with bleaching and finishing. This trade will be particularly affected because 50 per cent, of the bleaching and finishing in Ulster is of cotton cloth brought over from Lancashire. Apparently we can produce a high quality finish in Ulster which Lancashire cannot produce. Consequently, 50 per cent, of our bleaching and finishing is of Lancashire cloth brought over and finished in Ulster. We believe that the latest rise of 10 per cent, in transport charges will severely damage that trade.

Any competition which would arise in that way would be with cotton which is sent from Lancashire to my constituency in Dunbartonshire, and I am sure the charges in that case would be very much the same.

I expect they would.

I have given a few examples from which it will be seen that it is not easy to remedy the situation. This debate has been extraordinarily interesting, because it appears that hon. Members in all parts of the House are groping for some method of solving this problem, for solved it must be. There are several ways of doing it. The first is by means of a partial subsidy—in other words, a subsidy arranged within an industry as, for example, a subsidy on one form of commodity, a flat rate for fish or special provisions for agriculture. I dislike that method intensely, because it is unfair. In Ulster we are helped in agriculture and we are subsidising our industrial coal in order to compensate for transport charges, but it is an unfair method. Why help agriculture and not fishing? Why assist in the case of industrial coal and not in the case of domestic coal? This method always operates against the smaller man, and in my view it is not a satisfactory method.

Next, there was the suggestion made by several members opposite, first put forward, I think, by the hon. Member for Orkney and Shetland (Mr. Grimond) and then advanced by the hon. Member for Birkenhead (Mr. Collick)—a suggestion that we should have an all-out flat subsidy on freight. I do not altogether like that idea, either.

I did not say an all-out flat subsidy. I said I could concede the case for assistance.

I accept that correction, but if one concedes the case for assistance, I think the only method of implementing it is by a subsidy. What the hon. Member intended to convey was that any assistance should be borne by the Treasury. I do not altogether like the idea that the general taxpayer should give this assistance. There may be something in it, and it is perhaps worthy of more examination, but instinctively I do not like it. I feel that we ought to examine every other possible method first.

In this connection, I was impressed by the speech which my hon. Friend the Member for Caithness and Sutherland made in opening the debate. I think that there is something in what the hon. Member said. There is something to be said for increasing the flow and for perhaps a reduction in rates to see whether it would provoke greater traffic. I think that this is something worth trying, because it is something which has not been tried since the war.

I am not clear as to what the hon. and gallant Gentleman means by increasing the flow. Where do the goods come from in order to get the flow if there is no population and no production in the area?

I believe that a substantial reduction in the through rates of transport, say to Northern Ireland, would be an immediate incentive, because of the other incentives there for industrialists to consider putting subsidiaries of their concerns in Ulster. Secondly, there would be a great amount of traffic developed on the railway, and so this might work. It is, at any rate, worth trying.

Is the hon. and gallant Gentleman advocating what amounts to preferential rates for Northern Ireland, a rate somewhat lower than the present one and would he advocate that on all shipping lines and for all methods of transport as well as the nationalised one?

I was suggesting that instead of a 10 per cent, increase we should try a 10 per cent, decrease.

On everything, and see what happens. It is, I think, a suggestion well worth looking into, and I would invite my right hon. Friend to do so. At any rate, something has to be done, and I invite the Government to consider this suggestion.

If the present trend goes up, it will mean that the remote areas of Northern Ireland and the Highlands of Scotland and elsewhere will be denuded, and there will be an increased tendency for factories to be set up near to sources of raw material and near to their markets and the population will flow out. That is unhealthy and undesirable. If it is the Government's intention that that trend should go on, then let them leave things as they are, but if it is not the Government's intention that they should go on, then the Government ought to look at this matter again.

While I say that it is my intention to support the Government tonight, that may not always be my intention on future Regulations if I do not feel that this particular problem has been carefully looked at with a view to some action being taken, because so far as we are concerned in Ulster this is our very life-blood, and if the trend went on it would have very serious consequences for us indeed and for the employment of the population.

10.24 p.m.

I do not like intervening in a debate which is largely concerned with the transport problems of Scotland, but I do so tonight because it is not a Scottish problem alone and were it not for England and Wales the position in Scotland would be very much worse than it is at present.

This is not a new problem. It is very long-standing. It goes back as far as 1921, when all the separate private railway undertakings were brought together into four main groups. At that time, Scotland had the opportunity of having a railway system of its own, but it was found to be economically impracticable. Therefore, Scottish railway transport had to be integrated with the general system of England and Wales. We must realise that fact. Hon. Members opposite must be rather careful how far they want to press transport users in England and Wales to increase the subsidy—that is what it amounts to—on Scottish railway transport.

This question has a wide background and to some extent has an important financial problem connected with it. The responsibility now rests with the Transport Commission, which has inherited very largely the basic financing of the old railway systems. Everybody who has considered the problem and understands it is well aware that before the railways were nationalised, they were very much over-capitalised.

The Transport Commission, through Treasury stock, has had to take over much of that responsibility. I have no hesitation in saying that the industry is over-capitalised and that the demand made upon it for interest payment on Transport Stock is far too high. Nevertheless, that cannot be altered at the present time and the interest must be paid on stock which was over-capitalised.

When we consider what can be done to solve this problem, there is one thing with which I must disagree in the speeches of many hon. Members and of the hon. Lady the Member for Aberdeen, South (Lady Tweedsmuir) on the other side of the House. Why do they always assume that we can look for a reduction for freight charges in Scotland by dismissing railwaymen? It is all very well to make an extravagant charge of over-staffing in Scotland and to say that railwaymen are not pulling their weight, but we want to bring this question down to earth.

Where does the overstaffing exist? For what grades of railwaymen is there no work? When one comes to consider the facts, quite the opposite is the case. British Railways have more traffic than ever before, with about 70,000 fewer staff. It is all very well to look for a solution of the problem by taking away a man's job, but the Transport Commission is perfectly competent to see that in arrangements in Scotland and elsewhere the most economical and efficient use is made of the staff.

The question of transport must be considered, not in isolation as it applies to Scotland, but as a national problem, and one that is not limited to railways. [HON. MEMBERS: "Hear, hear."] Hon. Members opposite say, "Hear, hear," but it was not long ago that they went into the Division Lobby to break up that principle. The whole aim of the Transport Act was the integration of all transport, which would have assisted Scotland and would have permitted Scotland to have rates of freight traffic subsidised by the more remunerative sections of the industry. It is a fact with the Transport Commission, as with the Post Office, that the more remunerative parts of the transport organisation subsidise the less remunerative parts.

This raises the same point that I mentioned earlier, that we must not enter into a general argument about nationalisation.

I bow to your Ruling, Mr. Deputy-Speaker, but as a matter of fact, I did not think that I was doing that. I was trying to point out that this is a problem which affects the integration of all forms of transport.

The issue before the House is the annulment of these Regulations, which are concerned with freight charges.

That is quite correct, and this question of freight charges affects all forms of railway transport in England, Wales and Scotland—I am not sure about Northern Ireland.

According to hon. Members opposite, the solution of the problem is that these freight increases should not apply to Scotland. That is what hon. Members opposite are asking in principle, and they are even going so far as to suggest that the existing freight charges should be reduced as soon as possible. Economically, that cannot be done unless the right hon. Gentleman grants a subsidy or unless the transport users in England and Wales have to pay the loss.

The solution must be to ensure that the more prosperous sections of our railway transport organisation are able to assist the less prosperous sections. The right hon. Gentleman has lopped off the most remunerative part of that transport organisation to which he could have looked for a subsidisation of uneconomic rates in Scotland. Therefore, the position next year must grow worse because the Transport Commission now is restricted in its activities, and next year it will be divested of the remunerative part of its enterprise. The economic pressure must, to that extent, be greater and more severe. Hon. Members opposite are merely making a complaint against their own policy, and they are now reaping the reward of a policy which is turning out to be to the detriment of Scotland, to say nothing about England and Wales.

This is an interesting argument. If I understand it, it is to the effect that there would not be any need for the increases if road and rail were properly integrated. It might be of interest to the hon. Member to know that we nationalised our transport system in Northern Ireland long before it was ever thought of here, and transport in Northern Ireland is a permanent liability.

I do not think we can compare the situation in Northern Ireland with the problem as it is in England, Wales and Scotland. The problem is very much different and a much different approach must be made to it.

I do not think the hon. Member has met my hon. and gallant Friend's point. The hon. Gentleman said it would be all right if road and rail were integrated. When it is pointed out to him that road and rail are integrated in Ireland, he says, "I am not going to discuss that." But that is the problem that he is asking us to discuss.

I am quite prepared to discuss the question of railway organisation in Northern Ireland, but Mr. Deputy-Speaker is keeping a very keen eye on me and I know I must not answer. There is a very good answer. Railway transport in Northern Ireland is very much in the same position as it is in Scotland, because of sparsity of population.

If the position is the same in Northern Ireland as it is in Scotland then integration would not help Scotland.

England and Wales can. not come to the rescue in Northern Ireland to the same extent as in Scotland, and that makes all the difference.

This debate has been initiated mainly by Scottish Members and I am very glad that they realise that Scotland is very closely tied to the rest of the country in this matter. But we are trying to organise an efficient transport organisation for all people whether they live in remote and sparsely populated areas or in large towns and cities. We have to consider this problem as a whole. We must do it on the basis that the least prosperous and most sparsely populated areas must have as good a service as we can give them, in the knowledge that that service is subsidised to a great extent by more prosperous and better revenue-producing areas. We want a transport organisation that is commercially and financially sound and protected, in the sense that it should not have cut away from it the remunerative parts of which this Government have deprived it and which would have helped towards its general efficiency and success.

10.37 p.m.

It is a peculiarity of our procedure that to discuss a matter which vitally affects those who represent remote areas we have to put a Prayer on the Order Paper though we are not unmindful of the fact that the Government seem to have appreciated recently, and to have acted in accordance with their appreciation, the very difficult and severe liability to freight charges which we have to undergo in Northern Ireland. My hon. and gallant Friend the Member for Down, South (Captain Orr) has covered our problem in so comprehensive a manner that it will enable me to shorten my speech considerably, but there are one or two questions which I should like to ask the Minister of Transport.

Can my right hon. Friend explain why it is that to ship a motor car from this country to Ireland costs approximately 50 per cent, more than it does to ship one to the continent of Europe? If his answer is to tell me that it is a few more miles from Stranraer to Larne than it is from Dover to Calais, or from Liverpool to Belfast than from Southampton to Le Havre, I should be extremely grateful to him if he would explain to me how it is that the freight rate for eggs from Australia to London is approximately the same as from Belfast to Liverpool.

I should like to quote one or two examples of the quite fantastic rate of freight charges with which we in the remote areas are faced in these days. Reference has already been made to seed potatoes. It is now acknowledged that our seed potatoes are perhaps the finest that are produced anywhere. A farmer who plants seed potatoes has to carry out innumerable cultivations, manuring, planting, sprayings, burning, harvestings, carting and sorting. In fact, he has a year of almost incessant toil with the crop. He sorts it, puts it into 1 cwt. bags and loads it on a lorry at his farm.

What does it cost to take one ton of potatoes from a farm in my constituency, which is not one of the more remote areas of Northern Ireland, to various centres in England? To Southampton, it costs £4 2s. per ton. That is about one-third of what the farmer gets for a year's work. To London, it costs £4 19s.

The hon. Gentleman is quoting figures relating to one ton of potatoes. Surely the farmer is not sending single tons. Will he not be sending larger quantities? There are 2-ton, 4-ton and 6-ton rates. Surely the farmer will be sending the potatoes at the most advantageous rates.

I appreciate what the hon. Gentleman is saying. I am taking the rates for lots of between five and 20 tons in nearly every instance, and am not quoting the highest rates I am giving the normal rates paid on the quantities which are usually sent.

To Peterborough, the charge is £5 19s. per ton, and to Norwich it is no less than £6 10s. per ton. Therefore, about two days' work represented by the journey from Belfast to Norwich is compensated for by 50 per cent, of what the farmer gets for an entire year's work.

I should like to recite one or two recent personal experiences to give a little idea of the incredible volume of freight charge. Last year I took a motor car from Tilbury to Gothenburg, Sweden, and back. The return fare was £12. I immediately went to Stranraer and found that the Stranraer-Larne single fare for the same car was £8 16s. 3d., with no reduction whatever for a return journey.

Recently, I had a rather unusual consignment to make from Euston to Ballymena in my constituency—a rather small pony and a very old trap. As to the cost, I received precisely 4s. 6d. change out of £25. Whether or not the R.S.P.CA. have got to the stage where they insist on ponies travelling in first-class sleepers, I do not know, but it seems to me to be a most fantastic levy for a fairly normal consignment.

At the moment, I am suffering from the severest body blow of all from the Transport Commission. This morning I received a rough indication of what it would cost me to transport the contents of a moderate-sized flat in London to County Antrim, of which, of course, the transport element represents the major part. I have received only an approximate estimate, but no doubt it will not turn out to be less than the detailed one. The sum quoted to me was not less than £300.

Something must be done about these remote areas. In Northern Ireland we are victims of a vicious monopoly and price-ring on the cross-Channel services. I ask the Minister to institute a searching inquiry into the working of these undertakings, to see whether he can lift some of the burden from our shoulders. To assist the economy of remoter areas a system must be devised to cushion the impact of these everlasting freight rises by means of some form of tapered charges. I hope that the Government will take urgent steps to bring it about.

10.45 p.m.

The House has a certain amount of sympathy with the case that has been made out by those who have spoken on behalf of Scotland and Northern Ireland. Scotland has a unique problem, but I do not think that any of us realised that Northern Ireland felt quite so unhappy about the situation as we have just heard.

It is a pity that the Conservative hon. Members who put down two of these Prayers have not the courage to go into the Lobby and vote against the Government, in view of the very harsh words which some of them have used about the present transport situation, for which the present Government are largely responsible. The Minister must be feeling rather unhappy about some of the things which have been said. He will have a difficult case to answer to satisfy some of his hon. Friends.

The hon. Member for Caithness and Sutherland (Sir D. Robertson) should blame the policy of his own Government and himself for the situation which has arisen. He presumably voted for the 1953 Transport Act and against the 1947 Transport Act. When he was advocating a proper use of the railways he suggested that there should be more traffic diverted to the railways to relieve the congested roads and he referred to the excessive number of C licences. He was expounding his own views on transport policy, and I thought he was bound to say that the only solution to the problem was that put forward in the 1947 Act, because with it we were endeavouring to meet that very situation.

The hon. Member is misleading the House. The fact is that I said in my speech that only one increase happened during the war and that the freight-rate bludgeoning type of increase, which the hon. Gentleman's own Government brought in six successive times, raised the rates about 140 per cent. I want to get away from all that. I want to see rate-slashing and a sound commercial policy. It is a very simple issue.

I fully appreciate that point, but the hon. Member has forgotten that the rates were not put up except on the one occasion to which he referred, during the war, and that that was the reason why there was that succession of increases when wages went up and because of the all-round rise in costs. During the war, the traffic carried on the railways was for Government contracts on war account. Hon. Gentlemen are, however, being consistent in the attack they make upon their Government tonight. When we were in power, and whenever we had to come to the House for an increase in the rates, hon. Gentlemen opposed it and attacked the general policy and the transport policy of our Government. That is precisely what I propose to do tonight, in as much as the present Government's policy relates to the present increase.

We admit that some increase in rates might well be necessary at the present time, because, as the Minister pointed out when he made his statement to the House, prices have risen far more than have freight rates or fares. Whereas wholesale prices have gone up by 303 per cent., railway freights have gone up—including this latest increase—by only 253.

The reason why prices have gone up recently is because of the Government's own policy, and it is because of the rise in the cost of living, following its budgetary policy, that the demand for higher wages was inevitable, and increases had to be given. At the same time, their policy of increasing the fuel tax put a heavy additional burden on the Transport Commission as a whole, and not only on London Transport. The gap which exists between costs and freight rates had been largely closed by the economies which have been effected as a result of the unification of the transport system under the 1947 Act and of the increased efficiency which resulted therefrom.

I would remind the hon. Member for Armagh (Mr. Harden) that the taxpayers have not had to put their hands in their pockets to subsidise the Transport Commission at all, that in 1952 the Commission more than balanced its accounts, and that it has been indicated that for 1953 the Commission will again have a surplus. So it is unfair to suggest that it is the taxpayer who pays. Deficits which accumulated before that were met out of the Transport Commission's own reserves.

I would suggest the House keeps fully in mind that it is the Government's transport policy which is preventing the Transport Commission from effecting greater economies, increasing efficiency and bringing about that integration of road and rail which would assist in the more efficient and more economic operation of the transport system. In the Commission's 1951 Report Lord Hurcomb pointed out that if the Commission had been left alone and Government policy had not been changed it would have been able to look forward to the maintenance of equilibrium and to benefits accruing from further integration, and in the 1952 Report there is listed a number of steps which were being taken by the Commission for further integration of road and rail.

Where reference is made to such questions as the transfer of all the cartage of the Railway Executive, to be operated by the Road Haulage Executive, the extension of common commercial services, the pooling of engineering and stores, the transfer of traffic from road to rail and vice versa, where it was more economic to do so, it was pointed out that "substantial economies were anticipated," or that "large savings would have been undoubtedly secured."

It is the Government's policy of putting an end to the possibility of this greater integration that is responsible for the forecast of the Commission that its deficit would be substantially greater during this year, and it would not be in surplus as it was last year. There are other obviously contributory factors, but this question of integration is one of considerable importance. I know that hon. Members opposite frequently sneer at the word "integration," and do not accept that it was being achieved under the Commission. To appreciate this, one has only to look once more at what they have achieved. With the break-up of the British Road Services the harm done to the Transport Commission will become more apparent.

If further economies resulting from greater efficiency were to be achieved, one could well imagine that the gap between costs and revenue would be far easier to close than appears to be the case with the present outlook. Nevertheless, I was glad to see it stated in the Transport Tribunal's statement, published in the OFFICIAL REPORT of 10th February, that from further improvements in efficiency and from minor changes there will be a saving of £5½ million.

If the Commission is able in the coming year to anticipate a further improvement in efficiency which will result in a saving of £5½ million, one can well imagine that there would have been even greater savings had it been possible to continue the policy that was being carried out before the Government intervened and damaged the finances of the Commission.

The Government's transport policy is quite definitely damaging the Commission's finances, because it is cutting off some of the lucrative business of the Commission. The future year's estimate which is given in the Transport Tribunal's Memorandum states that there will be no revenue from British Road Services. With the loss of the revenue which they enjoyed last year, or of even the much smaller revenue which they had the previous year, then, of course, the level of charges and fares of the Commission is affected.

It is no use the Minister saying, as he said in reply to my hon. Friend the Member for Cardiff, South-East (Mr. Callaghan) on 10th February, when he referred to the loss of £7 million from the British Road Services:

Again, to the extent that the capital of the Commission is paid off by the proceeds from the sale of the lorries, that will only be paying off stock which has carried interest of 3 per cent, whereas on a capital of some £80 million invested in the road haulage side of the business the Commission last year, is known to have earned £7 million, and probably £8 million, which would be 10 per cent, on its capital. Therefore the Commission is bound to lose if the whole or any part of its road haulage section is disposed of. It is bound to lose that £7 million or £8 million with which it pays off stock at 3 per cent., so the loss is the difference between 3 and 10 per cent., which cannot be made up. So there will be no net annual saving of interest as the Minister suggested. There is bound to be a deficit on interest as far as the sale of road haulage is concerned.

Then the Minister suggested that it would be easier to maintain the units. He overlooked the fact that to a certain extent the overheads of the British Road Services must remain. A large national organisation has been built up and carries large overheads. While it is being sold off, and premises disposed of—if he can find the buyers—the overheads remain as so large-scale an organisation cannot be disposed of as a whole. A large section will remain unsold carrying those overheads which will be a continued drain on the resources of the Commission since they will be supporting a very much smaller fleet of vehicles.

The Minister's last point in his statement was a reference to the record of the last six years which, he said, is not a happy financial one. Once the organisa- tion was really running well and had been consolidated it was a very happy financial story, and if this £7 million to £8 million profit last year is correct—as we have every reason to believe—then it is certainly a happy financial picture, and not the one the Minister painted.

The hon. Member for Caithness and Sutherland or the Member for Ross and Cromarty (Mr. John MacLeod) referred to the postponement of the charges scheme. This is another result of the Government's transport policy which is affecting the finances and the general situation of the Commission. All these factors are contributory to the necessity for an increase in freight charges to make up the difference between their costs and revenue. But it was the Minister himself who was responsible for the charges scheme being postponed, because that scheme was ready at the time there was a change of Government. The scheme was in draft, and consultations were taking place with the various sections of trade and industry.

The Parliamentary Secretary said in March, 1952, that it would have been ready in the autumn of 1951, but that due to a change of Government further time was needed to enable all concerned to consider the matter in the light of the Government's intentions towards transport. If that scheme had been able to go into operation before the change of policy there would have been correlation between road and rail rates which would have met probably some of the problems referred to tonight, particularly those mentioned by hon. Members for Scottish constituencies, and it would have brought about a more logical charges scheme which would have assisted the revenue of the railways. Now the Minister tells us that there are to be submitted to the Tribunal heads of proposals, and this again will take a long time.

I hope that the Minister will be able to tell us what lines this scheme is likely to follow, and whether it is taking into account the proposals for an extension of tapering which have been pressed quite strongly by several hon. Members this evening.

I certainly think that an extension of tapering is required for long-distance journeys, and that it would be of assist- ance to remote areas. But it could equally be applied to passenger traffic, and long-distance passenger traffic is the Commission's most paying proposition, as it has pointed out. A great deal of traffic is lost to the long-distance coaches because of the high passenger fares on the railways. I should have thought it was possible not only to increase tapering in passenger traffic but to extend the type of charging introduced in the case of the "Starlight Special." Since fully loaded, long-distance trains are the most paying of all railway passenger traffic, the scheme employed in the case of the "Starlight Special," with advance bookings and a fixed period of travel, must be paying the Commission handsomely.

I should like to see the introduction of many similar train services, going from the centres of the dense urban areas to the holiday resorts this summer. It would pay the Commission to introduce these services, with advance bookings to ensure full loading, and with fixed periods of travel—leaving on Friday or Saturday and returning eight or 15 days hence, which would suit those people who are to travel long distances on their holidays. It would bring much more traffic to the railways, because families would much prefer to travel by train than by coach. I suggest that the Commission extends its operations along those lines.

Another aspect of the Government's transport policy which is affecting the industry is the uncertainty which it has introduced, in road haulage and in the case of bus and coach companies, of which the Commission controls a considerable number. If the Minister wants further to harm the finances of the Commission, all he has to do is to denationalise the buses. By denationalising road transport he is losing millions of pounds for the Commission, and if he denationalises the buses he will lose well over another £1 million, which the buses now contribute to the finances of the Commission. That would be a sure way of requiring a further increase in fares and charges.

Is the Minister able to tell us anything about the railway reorganisation scheme? The White Paper has to be laid in the House by 5th May, unless an extension of time is given by the Minister. During the debates on the denationalisation Measure many suggestions were put for- ward by hon. Members opposite for establishing regional or area boards, and the Minister appeared to be sympathetic towards them. I have grave fears that if a policy of complete decentralisation is carried out many of the gains achieved through the unification of the railways, in centralisation, standardisation, and so on, will be lost to the Commission.

If these area boards are set up and there is this attempt to make the different regions more autonomous it will be Scotland that will suffer most. Scotland, from the railway financial point of view, is not able to support herself, and it is standardisation and unification, and the economies that they make possible, that benefits Scotland most of all.

I would remind the Minister of a statement made by Sir Brian Robertson the other night when he was addressing transport men. Talking about the traditional loyalties of the old railway companies, he said:

I hope, therefore, that in considering this scheme with the Commission before the White Paper is presented the Minister will not be tempted to follow the advice of his hon. Friends and create these area boards. I cannot see what useful purpose they would serve. If directors intervene in the regions between the Commission and the Chief Regional Managers they will only make work for themselves— because they must do something—and cause confusion and conflict between the regional officers and the Commission.

As long as the Commission is faced with the necessity of increasing revenue by seeking higher charges the more difficult it is for it to engage in large capital development schemes. We have often spoken here of the need for large capital development on the railways to bring about more electrification and modernisation. If the Minister wants the railways to be competitive in the long run, and without having to come to the House, as, unfortunately, they have had to do in recent years, to seek increased charges, then it is necessary to modernise the railways and to authorise large scale electrification schemes in the urban areas.

Every large scheme of electrification undertaken by the railways has paid handsomely; not only the imaginative Southern Railway schemes, but also the post-war scheme on the line to Shenfield, which has increased traffic immensely and must be contributing substantially to British Railways' revenue.

The Minister should be courageous enough to seek funds to engage in this work. There is scarcely need to remind him that the next scheme must be on the North London suburban lines, the electrification of which is being held up pending the building of the new tube, although no one knows when the money for that will be found. Electrification is necessary not only to modernise the system, but to improve the financial position of the railways in the long run.

I have no hesitation in saying that the Government's economic and financial policy, and its persistent interference with the process of building up a unified transport system, is responsible for the increase in freight charges. The halt which the Government put to integration, and the abandonment of the charges scheme, together with the sale of the profitable assets of the road haulage organisation at a substantial loss and the uncertainty which has been introduced into what was an improving transport system, are all matters which have damaged the finances of the Transport Commission.

If this policy is persisted in, then this will not be the last time that the Government will have to come to the House in an effort to justify an increase in railway charges. So long as the Government pursue a transport policy based on party politics, so will the finances of the Commission be insecure; and before long, I venture to say, the transport freight user, for whom the Government appears to have little concern, will be asked to pay even higher charges, while the passenger will have to pay higher fares.

This process of higher charges chasing higher costs, as is happening at present, is no answer to our transport problem. For therein lies deficit not surplus, insolvency, rather than solvency, and I see no relief for traders or for travellers; but dearer travel, and dearer charges. I suggest that there is a limit to what the transport user can pay and what he will pay. The trader will turn to alternative transport, and the passenger will be forced to reduce his travel.

Under the 1947 Act we endeavoured to create a planned and unified transport system, and substantial progress was being made, when this Government intervened and reversed our policy. Because we still believe that that policy was the correct one, we are determined, when we are returned to power, to recreate that unified and publicly-owned transport system.

11.18 p.m.

I do not wish to prolong the debate, but I do not think we should end it without there being some reference to another of the remote areas, not so far mentioned tonight, and that is Cornwall. We have had speeches about Northern Ireland and Scotland, but nothing from the far West, where, I suggest to hon. Members, the same problems arise. I think that it was from Cornwall that the suggestion arose, some years ago, of inaugurating a service similar to the "Starlight Special," and we still hope that something of that sort will come our way. We hope that some economies will be possible to enable some assistance to be given to districts of the far West.

Having said that, I should certainly not support a vote against the Government on this Prayer because the only result of that, if it were carried, would be to put the general loss on to the taxpayer; and that would be a futile proceeding.

I should like to ask about the sum of £7 million. It is, I appreciate, only an estimate, but I should like to know what is included. For instance, are the central charges deducted in arriving at that figure? I do not know to what it really refers. Even if it is correct at £7 million, there is the question of the loss in the forthcoming year because of the sale of lorries. The Commission is not selling anything like the full number of lorries which are included in British Road Services, and the whole of the profitable part of British Road Services appears to be retained. I should have thought that that would have made a substantial difference in arriving at the figure. I hope that when this matter comes to be considered, the special problems of the remote areas will be given special consideration and that something will be done for them.

The main problem of the economics of the railways has to be dealt with as a whole, and I do not think that the suggestion that it is all tied up with road transport can be sustained. If we look at the 1952 figures we find that British Road Services made £1,500,000 and the railways made £37 million

I have the last published figures, which are for 1952. Something very much smaller cannot support something very much larger, and it is absurd to go on talking as though it could, or to say that the smaller is the principal part of the larger. It is about time ihat that argument was dropped.

As a lot of figures have been bandied about and some say that £7 million was the profit for last year and others say that it was £9 million, would it not be a good idea if the hon. Gentleman asked the Minister to give the right figure? I am sure he knows it.

Even if it is £7 million or £9 million, what has it got to do with £37 million?

The £1,500,000 was the figure for 1952.

I was just bringing my remarks to a conclusion, because I am sure that at this hour the House does not want to prolong a discussion on points which have already been made. I hope that this matter will be looked into and that something will be done, as it is most urgent.

11.23 p.m.

A number of hon. Members opposite have said a good deal about integration and a unified transport system. I cannot quite understand what they mean by integration. We in the North of Scotland have suffered from high freight rates, and to us integration means that the alternative is road haulage the rates of which approximate to rail rates. So we are cornered and the only way out is by means of C licences. We have seen an enormous increase in the number of C licences in recent years. That is surely a sign that our railways are not being properly used. There are well over 800,000 C licences, which gives an idea of the traffic which might have been carried on the railways.

I should like to put a point to the hon. Member following his comments on the situation in the Highlands. Surely he is aware of the service which is rendered by the subsidised MacBrayne freight lorries in inaccessible areas at quite uneconomic rates, and that this House voted £300,000 to enable that freight carriage service to operate in those areas.

That is true, but, unfortunately, it is not the case everywhere. I know of a builder in Inverness who found it more economical to send his C licence lorry empty one way to fetch his bricks than to fetch them by British Road Services or British Railways. There are many of those examples. The position is serious. An increase in freight rates is serious for the whole of the country, but for those of us who live in remote areas it hits like the end of a whip.

Sixteen years ago, before the war, the Hilleary Report on the Highlands and Islands of Scotland pointed out that

The Cameron Report of 1950 pointed to the serious situation then, but nothing has been done to implement its recommendations. The Highland Panel has made repeated representations, but, so far, with no success. The two issues here are: first, what the Transport Commission itself can do; and, secondly, the responsibility of the Government. Obviously, we cannot expect the Transport Commission to subsidise the Highlands. I make it plain that what we who represent Highland constituencies want from the Commission is a sensible arrangement for long-range transport that would affect the whole country. We are entitled to ask that the Government ensure that negotiations for the new arrangements do not take too long and that, if they are not satisfactory, a way is found to make them satisfactory.

We need not always regard the Highland area as a liability. It can be a tremendous asset to Britain if it is used. The Ministry of Food spent £82,000 on transporting meat from the North of Scotland to London in three months last year. I am afraid that a considerably larger sum will now have to be found by the producers. But let us consider what the position would be if we had full development in the Highlands in meat production alone. It has been authoritatively estimated by Mr. Stuart, of the Northamptonshire Institute of Agriculture, that with full development we could have 240,000 head of cattle for slaughter each year from our hills. In other words, we could send approximately 80,000 tons of meat from the North of Scotland to England. That would mean an immense increase in revenue from freight charges alone, apart from its great value to the general economy when one remembers, that last year, we paid the Argentine £150 a ton for meat.

I should like to give one or two examples of the way in which freight charges bear hard upon the Highlands today. In the Isle of Skye a ton of coal costs £8 6s. 7d. delivered. With the latest increase I suppose that the cost will be £8 16s. 7d. Thank goodness that the freight charge cannot be increased by more than 10s There is an exceptional rate for tea. If there were not, it would cost 348s. 11d. to deliver a ton from London to Dingwall. As it is, it costs 196s. 8d. I point out for the sake of comparison that the shipping rate from Glasgow to Malta is 95s. and from Southampton to Barbados and Trinidad 111s. 6d. These are a few examples of my own to show that the cost of ordinary necessaries of life bears heavily on the people in the Highlands.

I know that it is out of order to talk about the cost of passenger transport, but when a man dies, he is no longer a passenger but becomes freight. I have often said that it does not pay a Highlander to die in London. Nor does it. A short time ago a constituent of mine died here, and the cost of sending his body to Portree in the Isle of Skye was £85. That is an absolutely shocking charge.

I know that my right hon. Friend has given a very great deal of consideration to this matter, and Sir Brian Robertson has received us courteously and spoken to us about it, and I know that both he and my right hon. Friend are thoroughly aware of the problems. I ask my right hon. Friend tonight to give us some hope. As the hon. Member for Orkney and Shetland (Mr. Grimond) said, the matter has been debated over and over again. Is it too much to ask my right hon. Friend to give us some hope that the problem will now be tackled?

11.31 p.m.

I want to approach the matter from another angle. The speeches, so far, have fallen into three classes. Some were factual and well-informed; some were ill-informed and unhelpful; and some displayed emotion, a natural emotion because the topic touches the welfare of Scotland and Scottish industry and of the workers in the great railway industry.

I want particularly to refer to the speeches of my hon. Friends the Members for Birkenhead (Mr. Collick) and Acton (Mr. Sparks), which were very well-informed and factual. I echo what they said about the railway workers having for too long waited for decent wages and conditions. I hope that nothing that I say will be taken as in any way prejudicing the workers in that industry.

My two colleagues very properly pointed out that the situation with which the Regulations seek to deal is one which has been deliberately created by the present Government's action in destroying the integration of the transport system of the country; that it is a national problem; and that the Regulations do nothing to solve the national problem.

I therefore pray that these Regulations be annulled because in relation to Scotland they do nothing to solve the problem which they purport to solve, they are bad for the railway industry and for the workers in the railway industry, they are wrong, mischievous, invidious and contrary to public interest and policy, they are defiant of the best public opinion in Scotland, they are regardless of the interests of the producer, the merchant and the consumer, and they are inimical to the good of the industry in Scotland.

That is a formidable indictment. I do not rely upon my own ipse dixit to show that it is sound and true. I am supported in this by the best public opinion in Scotland, by the leading newspapers in Scotland and by the highest expert opinion there.

The freight increases perpetrated by these Regulations are a denial of what we have hitherto regarded as Government policy which pretends to favour repopulation of the Highlands and development of industry in Scotland and facility for intercourse between the North and South of these islands. These increases do the very contrary. They would further depopulate the Highlands, destroy industries in the North and North-East of Scotland, and tend to negative intercourse between North and South. [ Interruption. ] There seems to be an organised claque on the Government benches which wishes to prevent me from speaking, although we paid careful and courteous attention to hon. Gentlemen when they were speaking. I ask for your protection, Mr. Speaker.

The Government pretend to desire to help the fishing industry, and made that a feature of the Gracious Speech. The increased charges will, on the contrary, tend to ruin it, and to drive out of existence the fishing communities round our shores, bankrupt the merchants and distributors, and deprive consumers of fish of that succulent food which is so much desired by the people of this country. These fishing communities are necessary both in peace and war. In peace, they help to feed the nation; in war, they defend it by manning our mine-sweepers and ships of war. It is not right or statesmanlike to attempt to kill these fishing communities.

Perhaps the worst point in this Government hypocrisy in putting forward these Regulations is reached when we compare these Regulations with the Government's foreign economic policy. The Government profess to foster foreign trade, but all this means that they are penalising Scottish trade.

In introducing foreign policy and foreign trade the hon. and learned Gentleman is going a little wide of the Regulations.

I merely mentioned them for the purpose of contrasting the treatment of foreign trade with that of Scottish trade and showing that the Government pretend to desire to foster Scottish trade and yet foster foreign trade above it. I am all for the development of foreign trade and East-West trade, but it is arrant hypocrisy on the part of the Government to do that and yet to penalise Scottish trade by means of these Regulations. It is very good to extend our trade of both kinds, but look at the arrant hypocrisy in fostering one against the other.

That is what the Regulations do. I oppose them. Let me quote some leading Scottish authorities on these Regulations, and first that great organ of public opinion, the "Scotsman." In its issue of 5th March it said in a leading article:

Mr. Speaker, I understood that you were the keeper of order in this House and not that organized claque over there. I am quoting from the "Scotsman," which says:

"Mr. Lennox-Boyd has hinted that the Commission are thinking of extending the system of tapered charges which at present does not operate beyond 100 miles. This concession was proposed by the Cameron Committee three years ago, and endorsed by the Inverness Chamber of Commerce."

Let us consider shipping. Messrs. Hall, Russell and Company, of Aberdeen, shipbuilding engineers and boilermakers, say:

"While we cannot say to what extent trade, industry and employment will be affected by the new charges, it can truly be said any increase in costs in shipbuilding is harmful in every way, and one cannot see how increased transport charges can have any other than a detrimental effect on the industrv."

I have other letters from other sources. The Aberdeen Steam Fishing Vessel Owners' Association wrote a long letter, saying:

"It is difficult to exaggerate the seriousness, of the situation in the port, and informed opinion here can find nothing to remove the impression that the port is moving gradually towards extinction."

Scottish Agricultural Industries wrote a long letter in the same tenor, against these charges, and the Aberdeen Chamber of Commerce wrote a long letter to the same effect.

I have a budget of correspondence on this subject with which I do not propose to trouble the House. I have a long letter from that very distinguished Scotsman, the Provost of Stornoway, and I have a letter from the Provost of Inverness, both to the same effect, both men of great experience and knowledge, who speak with authority on Scottish industry. They all say that this increase in freight charges would be most damaging, and they refer to the report of the Cameron Committee, which sat under the Chairmanship of Mr. John Cameron, Q.C., and was appointed by the Scottish Council, Highlands Panel and the Scottish Board of Industry.

Its remit on this subject was: It took evidence. It sat long hours and many times, and publish its deliberations, which are brief. They are:

I have ventured to trouble the House with that body of authoritative opinion, and the most authoritative body of opinion in Scotland is against these regulations. I hope, therefore, that as we are not to have a Division [HON. MEMBERS: "Oh."] I shall not take my guidance from the hon. Member who proposed this—

—Prayer.

I ask for your protection, Mr. Speaker. I do not know whether it is because this is the post-prandial hour that there is so much disturbance on the benches opposite, but I would draw your attention, Sir, to the fact that when hon. Members opposite were addressing the House they received a courteous hearing from hon. Members on this side, unlike the hearing which I have received.

11.47 p.m.

I know that the hour is late, and that the House wants to get on, as I do. Therefore I shall not attempt to follow the tremendous and indeed spectacular flight of oratory which the hon. and learned Member for Aberdeen, North (Mr. Hector Hughes) achieved. I only wish to give one assurance, and that is that although I have been many things in my life, I have never been an organised "claque."

This has been rather an odd debate, because all my hon. Friends have protested most strongly against the rise in the freight charges and have then said that they were going to vote for them; and all hon. Members opposite have defended with even greater strength the increase, and have concluded their speeches by saying that they would vote against it.

I intervene only because the whole issue is a matter of life and death to the North of Scotland, and has been for the past 25 years. I am sure of only one thing in this connection, and that is that we shall never solve the economic problem of the North of Scotland if we leave out the question of transport. It is no good attempting to solve this problem in a piecemeal fashion. The so-called "Peterhead-Buckie Scheme" is an illustration of that. We must solve the whole problem, within the context of the transport problem; because, otherwise, it will not be solved at all. Transport is not the only thing; but, in my opinion, it is the main factor.

It is better to face up to this issue, and very few have quite faced up to it tonight. If we are going to have a tapering charge—and I think we ought to have it—of sufficient length, strength or magnitude to meet the needs of the remote areas, it will in fact involve a subsidy. I am prepared to face up to that. I am not prepared to accept a general subsidy; but I am prepared to advocate a limited subsidy, for a specific purpose, on a geographical basis. Then everyone will know what it is about. It should not be for Scotland alone, but for all long hauls from remote areas. It should be recognised as a form of subsidy. After all, an increase in freight charges is a kind of subsidy, because the public are paying more for their transport. I believe that, in the long run, some such scheme will be necessary.

I want now to give one set of figures which is applicable to all our industries. I had a letter this morning from one of the biggest growers of seed potatoes in the North of Scotland. This is an important industry in that area. Taking Reading as the destination, the present charges are 100s. 11d. a ton from Fraserburgh; 83s. 4d. from Forfar; and 72s. 4d. from Dumfries. Under the new scale of charges the figures will be 111s, from Fraserburgh, 91s. 6d. from Forfar, and 79s. 6d. from Dumfries. Hon. Members will note the difference as you go South. This producer writes:

In conclusion, I wish to be deliberately provocative. I assert that the railways of this country are inefficient at present, in comparison with those of France and the United States. I am delighted that the wages of the railway workers have been increased. That is splendid, but in comparison with France and the United States our trains and stations are dirty, our engines are filthy, our timing is bad; and while our man-power may not be excessive, it is misplaced to a considerable extent, and we cannot boast—as we used to do—about the efficiency of our railways.

If I want to get to Aberdeen from Turriff in my constituency, I cannot get there by train because they do not run any passenger trains. But they keep the line going, with signalmen and everything else, for goods trains about three times a week. That is not a tremendous turnover. The French would have had little Diesel cars skimming along like trams, full of passengers all the time. If I want to go from Fraserburgh or Peterhead in the winter, I have to make preparations for an Arctic expedition. The carriages were built about 1892. I have to take two greatcoats, a rug, sandwiches, and to rise about 6 a.m. in order to catch the only train which runs in the morning; and, last but not least, I have to take a flask.

All I am suggesting is that we have nothing to be so tremendously proud about. I know that all the "railway boys" are here, ready to defend their industry, as they always are when we have a railway debate; but I do not think that our railways are as efficient as they ought to be, and that is one reason why they are not getting the traffic they should.

My second assertion is this. There is now being placed upon the roads of this country every year an amount of vehicular traffic which they are quite incapable of carrying. Conditions are getting worse and worse with every week that passes. In fact, trains are now being rapidly transferred from the railways to the roads. These trains run along the main roads at night—terrifying things, shooting sparks and smoke and speeding along. No attempt is made to control the amount of new motor cars, vans and heavy lorries which are relentlessly produced and placed on the roads.

I am very interested in what the hon. Member is saying, but I am wondering how it is related to these transport charges.

May I ask my hon. Friend if, when he saw these trains going up the Great North Road, belching out smoke and sparks, he had first fortified himself with his flask.

No. Everybody knows that the trunk roads are extremely dangerous, and that far too much traffic is put upon them. At the same time too much traffic is being taken from the railways. We want to get that traffic back, and get the sort of turnover to which my hon. Friend the Member for Caithness and Sutherland (Sir D. Robertson) referred, because that is the only way to revive the railways. The sheer carnage on the roads, if nothing else, will force the Government to face this issue before long. I do not think that the Minister can give us the solution tonight, and I would not expect him to; but this Government and any future Government will be forced to reconsider the whole transport system of the country, and to deal radically and drastically with the problem, on a national basis, within the next two or three years.

11.58 p.m.

I hope the House will understand why I did not immediately follow the hon. Member for Enfield, East (Mr. Ernest Davies). It became clear that many hon. Members still wanted to speak, and as this time had been specially chosen to enable a large number of Members to take part in this debate, I thought it would be courteous on my part to let them make their observations. Had I risen when I first intended, we should have missed the speech of the hon. and learned Member for Aberdeen, North (Mr. Hector Hughes). I join in what my hon. Friend the Member for East Aberdeenshire (Sir R. Boothby) said about that rollicking performance on St. Patrick's Day, when the hon. and learned Member galloped through sheaves of letters—all of which we had ourselves read and carefully pondered—with the speed of one of his horses, for I think he won the Irish Grand National some years ago, strange as it may seem.

That destroys a legend, and I am rather sorry I brought that fact to light.

At some other time I shall join issue with my hon. Friend the Member for East Aberdeenshire in regard to some of the comparisons he drew. He spoke of little French diesel trains rushing up and down the rails, and said that we ought to follow the example of France and give similar facilities to the people of Aberdeenshire. At some other time I shall debate with him the consequences of the financial structure in France or other countries, which is scarcely reconcilable, in the field of transport, with our general approach to the problems of taxation. But that is quite another matter, and it would be unwise to develop it tonight.

We have had a very helpful and interesting debate, which has been listened to not only by many hon. Members but also by officers of the British Transport Commission. Everything that has been said will be most carefully pondered. I shall not go into the detail of the story of these freight charges. I think they are all well enough known to hon. Members on both sides of the House. There are, however, one or two points to which I should draw attention.

The British Transport Commission applied to me on 30th December for an increase of 10 per cent, as from 1st February in its freight charges, subject to a maximum of 10s. a ton, under the transitional provisions of the 1947 Act. I passed on its application next day to the Transport Tribunal, and the Tribunal made very speedy recommendations. Some criticism has been made of the fact that the Tribunal did not hold a public inquiry or consult trade and industry. It is for the Tribunal to determine its own procedure, but I must make it quite plain that in my view it may have been influenced, and probably was, by my request for early advice, as well as by the urgent needs of the Commission's situation.

Without an early recommendation the Commission would have gone on adding to its accumulated deficit at the rate of £500,000 a week, and this must be my answer to my hon. Friend the Member for Ross and Cromarty (Mr. John MacLeod), who asked why I could not have had a stay of execution until the merchandise charges scheme was published. It cannot be too often repeated that the Commission has the duty to make its undertaking pay. There is no bottomless pit from which it can draw. Whatever may have to be done to help the railways modernise their equipment, there can be no question of a subsidy to help them with their current expenses. On this the Government and the Commission, not least the Chairman of the Commission, are in complete agreement.

As I have on another occasion pointed out, the facts presented to the Tribunal show clearly that without action of this kind there would have been a deficit in the future year, that is, the year from when it would have reported, of £25·2 million compared with a surplus in 1952 of £4·5 million. Of this, some £23 million is attributable to British Railways. The increase of £2 million anticipated in the passenger receipts and nearly £13 million in freight would have been outweighed by the increase of £36·9 million in working expenses. Of this huge sum wages account for £16·2 million, the increase in the prices of the commodities they have to use for £6⅓ million, and the change in the system of maintenance, which is worthy of Parliamentary discussion on its own and is, I believe, entirely right, for no less than £16 million.

My hon. Friend the Member for Caithness and Sutherland (Sir D. Robertson) said the railways were not a fabricating industry. That is true, but none the less, as was pointed out by the hon. Gentleman the Member for Birkenhead (Mr. Collick), they are deeply involved in the cost of the commodities they have to use.

I shall not go further into the general scheme, but shall try to deal with the various points raised in regard to Scotland and Northern Ireland, and one or two suggestions that have been made, and the element of controversy that was introduced by hon. Gentlemen opposite to remind me of old days last year. Let me first thank the Scottish Members on both sides of the House for the way in which they have spoken tonight. I would in particular thank my hon. Friends the Members for Caithness and Sutherland and Ross and Cromarty, who moved and seconded the Motion, for the temperate manner in which they did so.

I recognise the gnawing anxiety that transport problems are to the splendid fellow countrymen of ours who live in the Highlands and Islands of Scotland. The remoteness of the Highlands from their markets and sources of supply inevitably entails high transport costs. I recognise that in addition to the cost of railway carriage they have often to add heavy road costs or sea costs from the railhead to the ultimate destination. I recognise also that there has been an ever-decreasing revenue for them with each successive increase since the war, most of which increases have taken the form of percentages of the existing rates. It so happens that on two occasions it has been through the responsibility of the present Government that a limit of 10s. a ton was put on the freight increase. This was proposed by the Commission as a deliberate act of policy in order to temper the effect of the greater freight charges on longer distance traffic.

If I appear to criticise some of the figures used, and to qualify a little some of the robust declarations made, I hope that it will not be thought that I do not regard transport as fundamental to such parts as the Highlands and islands, or that I am unconscious of the urgency of the problem. I hope to be able to say something of value to all hon. Members as representing a great step forward in this great problem which my hon. Friend the Member for East Aberdeenshire has said has worried Scotland for a quarter of a century. But long hauls to Scotland and elsewhere have advantages not offered to short haul traffic, and weightings in their favour as a matter of policy by the British Transport Commission. They have special rates far below the standard rates.

On the question of the special rates, the principal outgoing traffic from the islands and Highlands is seed potatoes, oats, barley, livestock, oatmeal, timber, and whisky in cask. In all these commodities special rates are in operation, and in most instances, up to 40 per cent, or more below the authorised standard charge. Scotland as a whole sends more than 300,000 tons of seed potatoes by rail, carried at a rate lower than any other root crop in the whole of the United Kingdom. The Highlands send some 30,000 tons at special rates. My hon. Friend the Member for East Aberdeenshire read a moving letter from one of his constituents, and I would like to say that I, in conjunction with the Commission, will gladly look into any special case to see where the regional officers of the Commission can give advice.

I have also equipped myself with some figures, and although I do not deny that there is a heavy freight bill at the end of the journey for agricultural produce from Scotland, the Commission has faced its obligations in trying to make special rates for long distance hauls. My hon. Friend the Member for East Aberdeenshire, the hon. Member for Ross and Cromarty (Mr. John MacLeod) and the hon. Member for the Western Isles (Mr. M. MacMillan), among others, referred to seed potatoes, and they might be interested to hear that taking these from Inverness to Ely, a distance of 505 miles, and comparing the rate for that traffic with carrying the same commodity from Spalding to Preston, the figures are, Inverness to Ely, 1·986 pence per ton per mile, and Spalding to Preston, 3·520 pence per ton per mile. That is a definite attempt to try to meet a special need.

Let us look at grain from Inverness to Manchester; the rates are 2·8 pence per ton per mile, but from Liverpool to Leicestershire, 3·87 pence; or pitwood, where the figures are, Wick to Staffordshire, 2d. a mile, but Welton to Wigan, 4½d. a mile. I do not deny that at the end of the journey the bill for the individual producer is very heavy, because there are so many miles for which he has to pay; but attempts are made by the Commission, in the face of great difficulties, to face up to what are part of its general obligations.

As to the taper, as the House knows, the standard rates for merchandise are made up of conveyance rates and terminal charges. The rate per ton per mile for conveyance is reduced in the case of general merchandise at successive stages—20 miles, 50 miles and 100 miles. The terminal charges remain the same, and the effect of these two factors produces a taper according to distance.

My hon. Friend the Member for Inverness (Lord Malcolm Douglas-Hamilton) quite rightly drew attention to the Cameron Report and to the plea in that Report that there should be further steps in the taper—to 150, 200 and 300 miles. I readily agree that the taper at 20, 50 and 100 miles was fixed a long time ago and these things need looking at from time to time. I think we are all very lucky in the people who are at the moment in charge of the British Transport Commission.

I am sorry, I cannot give way now. I was glad to hear from both sides of the House praise for the vigour and sense of leadership shown by General Sir Brian Robertson as Chairman of the Commission. I have frequently been criticised in public and even more vehemently in private on this subject of taper for constantly sheltering behind the need to wait until the Commission has produced a charges scheme or, at least, the heads of agreement for a charges scheme. They have said that it has been continually postponed, virtually until the Greek Kalends, rather like Sir Walter Scott's words in "The Betrothed"— that we were altering the whole basis of railway charges and giving virtually complete freedom in that field. Setting the stage in that way so that the railways could really become competitive naturally confronted them with new problems. I do not deny that the Road Haulage Executive put a great burden on the Commission which added to their responsibilities.

Sir Brian Robertson is tackling his task, along with the devoted people who work for the Commission, with great drive and vigour. He has already been to Scotland, and in the next week he is going again, to Edinburgh and Inverness. On him lies the duty to make the Commission pay. But he also recognises—and it is in the interests of the profitability of the Commission—the need to encourage trade, industry and agriculture.

I said recently that I hoped that the Commission would be able to produce the heads of agreement soon. I am glad to say that they have made even greater progress with their task than I thought was possible, and I am now able to say that a railway freight charges scheme will almost certainly be presented by the Commission to the Transport Tribunal within the next three months. There are many stages after that when trade and industry in Scotland and Northern Ireland can express their views. I am also able to say, with Sir Brian's full concurrence, that he and the Commission intend that full opportunity will be afforded for prior consultation with using and other interests, in which particular regard will be paid to any views put forward on behalf of Scottish industry.

This represents a very significant step forward—the production of a charges scheme within the next three months. In addition to prior consultation, under Section 78 of the 1947 Act, there must also be a public inquiry on the charges scheme. The Tribunal is obliged to hold that and there will be another opportunity to put forward views on behalf of trade and industry. I am also authorised by the Commission, whose responsibility it is, to say that under the new scheme the Commission intends that a higher proportion of its transport costs shall be absorbed at an earlier stage than at present, namely by the really short-distance traffic. Medium and long distance traffic will benefit accordingly, and, if the scheme is approved, the Commission intends to quote commercial rates for general merchandise traffic which will take load and distance more fully into account. I hope that that will be of considerable aid to those in Scotland and Northern Ireland who are very anxious about the burden of transport costs.

I will say little more on this problem except to add one or two words for the benefit of my hon. Friends from Northern Ireland. They have the treble consequences of the increase in freight charges—the railway increase in Great Britain, the charges in docks in Great Britain serving Northern Ireland, and the charges for carrying by sea between Great Britain and Northern Ireland. As my hon. and gallant Friend the Member for Down, South (Captain Orr) and my hon. Friend the Member for Antrim, North (Mr. P. O'Neill) know, though there is much in common with the Scottish problem there are differences in Northern Ireland. It remains to be seen how far Northern Ireland will benefit as much as will Scotland by a reduction in long distance charges, paid for by an increase in short distance charges. That is something at which they will have to look. As to the problem of dock charges, as Northern Ireland Members know very well, there are both railway owned and non-railway owned docks. Holyhead, Heysham and Stranraer, for example, are railway owned, and Liverpool, Manchester, Glasgow and Greenock and others are not.

The railway owned docks will come under the Commission's scheme, approved by the Tribunal, for an increase of 10 per cent, in dock charges. This is fractionally more than is needed to meet the Commission's proper outgoings, but the Tribunal has taken the view that it would be unwise to be too mathematical in this matter in view of the unpredictable future with which any transport undertaking is faced. As to the non-railway owned docks, no approach has been made to me by any major ports for an increase in dock charges.

Northern Ireland Members are naturally deeply concerned about carriage between Great Britain and Northern Ireland by sea. I was asked by my hon. and gallant Friend the Member for Down. South why the 10s. limitation cannot apply to Northern Ireland. I think that he will agree that most of the rates concerned here are exceptional rates and so start life by being a good deal below standard rates, but the real difficulty is that through traffic to Northern Ireland is composed of different components—rail charges on both sides, shipping and dock charges. I am advised that it is not known how much of any through rate represents railway carriage in Great Britain. The difficulty of arriving at a 10s. limitation in that situation is overwhelming.

I have listened with the greatest interest to the speeches of my hon. Friends from Northern Ireland. In fact, I thought that they were among the most impressive made in the House tonight. I can assure both the hon. and gallant Member for Down, South and the hon. Member for Antrim, North that we do not forget our fellow-countrymen in Northern Ireland. If there are ways in which the Commission can help, we shall readily follow them.

There was a third Prayer on the Order Paper, and I must express a certain amount of surprise that the hon. Gentleman who I thought was going to move it has not done so. It was a Prayer to annul the Regulations relating to canal charges. It had a very impressive list of backers, including the former Home Secretary, the right hon. Member for South Shields (Mr. Ede). Though I do not, therefore, intend to deal with the merits of that matter, I want to make a brief statement about canals on the authority of the Transport Commission, because I believe this to be a matter of interest to the country as a whole.

There has been lately a good deal of renewed discussion about the proper use of our canal system in the United Kingdom. I myself have shared—though I have had to disguise it from time to time—some of the sympathy felt by hon. Members on both sides of the House towards the need for a new examination. I have spoken to the Chairman of the Transport Commission, and I am glad to be able to tell the House that Sir Brian Robertson welcomes the suggestion that there should be a new survey into the canal situation. Indeed, the Commission had already reached the conclusion that such a survey would be desirable.

The survey will be carried out by a member of the Transport Commission and someone from outside the Commission with wide experience of transport methods and practices. Both these men will be appointed by the Chairman of the Commission—the independent member after consultation with me. The general terms of reference will be to inquire into and report to the Chairman of the Commission on the use at present being made of the Commission's canals and inland waterways, and, in particular, whether all possible steps are being taken to ensure that the maximum economic advantage is being derived from the canal system under the Commission's control. I hope that we shall get some profitable results out of this new and objective survey.

Can the Minister tell us whether this inquiry will publish a report and whether the report will be presented to the House? Also, will it be possible to give evidence before the inquiry, or will it be a private inquiry?

I would rather not give any further details at this stage, but I will answer a Question in the House on the further details at an early date if the hon. Gentleman will put one on the Order Paper.

Having dealt with most of the points which have been raised on both sides of the House, I now come to the only party-controversial observations that were made. I feel that it would perhaps be consistent with the hour that we have reached if I did not deal in any detail with the charges which were made that some of the problems of the Commission are due to the reckless policy of the Government, which, it is said, has led to a rise in the cost of living or to the severance of the Road Haulage Executive from the Transport Commission.

I am quite ready to do so if hon. Members would care to hear some of my concluding observations, but I felt that they had not put much vehemence into the attack and were not quite as concerned as they affected to be. However, here are the observations.

In regard to the Road Haulage Executive, many suggestions are made, rarely backed up by facts, that one of the chief difficulties confronting the Commission is the potential loss of the revenue from the Road Haulage Executive.

These facts are constantly disguised. The total working surplus of the Road Haulage Executive over the five years from 1948 to 1952 was about £6·3 million. Allowing that in 1953 there was an operating surplus of £7 million—incidentally, it is very curious how little I appear to have disturbed them last year despite all that has been said by hon. Gentlemen opposite—then the total operating surplus over the six years would be £13·3 million. In passing, I think I am entitled to point out that one group of companies in private hands made over half that amount in one year, with great advantage to the Chancellor of the Exchequer.

The figure of £13·3 million is arrived at without any allocation at all to the central charges of the Commission. Bearing in mind that the value of the Road Haulage Executive assets was about £72 million—it was not that all the time but was built up to about that figure, but it did not include, for example, cash in stores and depots—it is not unreasonable to say that £2 million per year would have been a reasonable contribution from the Road Haulage Executive to the central charges.

This would mean, instead of the rosy picture so often painted by hon. Members, that for five years there would have been an average annual net loss of over £500,000, and that even throwing in last year's profit there would have been only a surplus of £250,000 a year. Hon. Members opposite are apt to forget the proceeds of the sale of the lorries and the levy which will make up for any loss on sale. The value of the property retained by the Commission may be about £9 million, and there will be about £63 million of assets to be sold. For these, the Commission will receive either cash, which can be profitably invested, or the Levy, which will make up the difference.

The Minister is being as slick as he usually is in dealing with these matters. [HON. MEMBERS: "Oh."] Yes. It is grossly unfair for the Minister to take the surplus over five years when this organisation was building up, accumulating assets and reaching the point where it would be a profitable organisation. Will the Minister tell us whether he has reason to believe that if the Road Haulage Executive had been continued it would not have been able to continue to earn £7 million a year? We have to look at the position of organisation last year, and not the position it was in for the five years when it was building up.

That is a wholly hypothetical question. I can certainly say that if private industry before had not been disturbed its profits would have been far greater than anything likely to have been earned by the Road Haulage Executive.

The hon. Gentleman raised once more the old bogy about the cost of living. I would only refer as other hon. Members have done, to the inescapable fact that in the last year of the Socialist Government wages rose by 12 points and prices by 14 points, while in 1953 wages went up by 4 points and prices by only 2 points. When hon. Members constantly cite the 8½ per cent, increase since the present Government came in, they always hide the fact that there was a 16 per cent, increase during the corresponding period under their control, and that 7 points of the increase of 8½ per cent, were incurred before June, 1952, when we had an inheritance of six years of incompetence to clear up.

I congratulate the hon. Member for the Western Isles on his speech. He and my hon. Friend the Member for Aberdeen, South (Lady Tweedsmuir) spoke about the possibility of railways and other forms of transport pricing themselves out of business and of breaking point being reached. It is the duty of the Government to create conditions under which industries such as the railways can prosper. I take some credit for this Government creating that full freedom of charges for the first time in our history which will enable our railways, alone among the railways of the world, to be competitive in the field of charges.

The vast majority of the people who work in the railway system do so with great pride and immense concentration which has not diminished with the passage of time. The problem with which the Commission are now confronted is to bring forward that which is not up to standard. This task can fairly be left to the present leaders of the Commission. In this field of greater efficiency its problems can much better be thrashed out between the trade unions and the British Transport Commission than across the Floor of this House.

I should like to end by saying that the good wishes of our country go with British Railways in the tasks that lie ahead, and we hope that there will be a time ahead when greater efficiency will meet any increased costs, and that it will not be necessary to come to the House with regulations of this kind.

Question put, and negatived.

Does the hon. and gallant Member for Down, South wish to move the Motion standing in his name?

War Pensions (Personal Case)

Motion made, and Question proposed, "That this House do now adjourn."—[ Mr. Vosper. ]

12.31 a.m.

I have called the matter I seek to raise tonight, "The case of Mr. Norgate." It sounds rather like an Edgar Wallace thriller, but for my constituent this is much more of a tragedy than a thriller. I do apologise to the hon. Gentleman who is to reply for keeping him here so late, but I am sure he will realise that this is a matter of great importance to my constituent.

This man was an electrical engineer who, at the outbreak of the war, was employed in a responsible position at the Poplar power station. He might have left London, as so many people did at the outbreak of hostilities—and no one would have criticised him—but he chose to stay and do his duty by the community. He had a responsible position, reasonably well paid by pre-war standards, an assured position with a pension at the end of it, and he had a very long record of about 30 years' excellent service, and very good health, having been absent from the job only one day in 30 years.

On the night of 29th September, 1940 all this was altered. He was the victim of a very near miss during an enemy air raid. He sustained injuries, the seriousness of which were not at first realised. In fact, his doctors say to this day that they will never really know what is the matter with him until he has gone; an opportunity might then present itself for them to discover the trouble. But he was immediately ordered out of London by his doctor and on 3rd October, 1940, he went to Bath, where he came into the care of a Dr. Cuppage, and remained under his care until April, 1942. During the whole of that time his condition neither improved nor deteriorated appreciably, as Dr. Cuppage has since testified. While there, he was twice asked by the Ministry of Pensions to go to Bristol, first for a medical examination, and secondly for treatment. Dr. Cuppage advised him strongly not to go to Bristol, as it was at that time an enemy target area.

The Ministry accepted these objections so far as the medical examination was concerned, and sent their doctor to examine him in Bath. But they refused to accept his objections so far as treatment was concerned, with the result that in October, 1941, payment of benefit under the Personal Injuries (Emergency Provisions) Act, 1939, was brought to an end.

Mr. Norgate had been in receipt of a payment of 35s. a week. I am not quite certain whether this represented a benefit of 100 or 80 per cent.—it was one or the other—and that is an important fact, as I shall show later. In April, 1942, Bath was heavily bombed and Mr. Norgate's doctor advised him to leave. He went to Nottingham and from then until October, 1945, he moved from place to place, living on his capital and on what his wife could earn.

Mr. Norgate himself was virtually unemployable, and it so happens that during this period he and his wife were for a time in the employ of somebody who is now the hon. Member for Harrow, West (Sir A. Braithwaite). Had the hour not been so late, the hon. Member for Harrow, West would have been here to support me, and would have told the House that during that period, despite very courageous and pertinacious efforts to be of service, it was quite apparent that Mr. Norgate was virtually unemployable and was forced to rely almost entirely upon his wife.

During those years he lived at various places, at Beeston in Nottinghamshire, Oxford, Gerrards Cross and Yorkshire. While at Beeston, early in 1943, he asked his professional association to pursue his claim for a pension. They handled the matter extremely badly, and eventually, after Mr. Norgate returned to London in October, 1945, he took the matter out of their hands and passed it to a solicitor. The first solicitor to whom he went advised him that it was not the type of case which he was accustomed to handle, and referred him to another solicitor, who agreed to undertake it.

From then until September, 1948, the Ministry refused all requests on Mr. Norgate's behalf for a pension, but in September, 1948, the case came before a pensions appeal tribunal which found in Mr. Norgate's favour and he was awarded a pension, but only at the rate of 20 per cent. Mr. Norgate refused to accept it and instructed his solicitor to appeal.

An appeal was lodged and a further medical examination followed, with the result that in December, 1948, he was awarded a pension at the rate of 100 per cent, but only from November, 1946, onwards. He was refused benefit prior to that date on the ground that it was the date on which his claim was lodged. The period from February, 1943, when he first asked his professional association to take up the matter on his behalf, to November, 1946, remained completely devoid of benefit.

The next instalment in this thrilling serial, if I may call it that, involves my predecessor, who is now the hon. Member for Hayes and Harlington (Mr. Skeffington). Here, again, but for the lateness of the hour this hon. Member would be here to support me. Mr. Norgate consulted him late in 1949, and, as a result of his efforts, the Minister, by letter dated 13th April, 1950, agreed to exercise the discretion vested in him under Section 71 of the Act and to allow Mr. Norgate a pension for the period February, 1943, to November, 1946, on the ground that he could not be blamed for the failure of his professional association, and that he had made strenuous attempts to persuade the association to act. But he awarded a pension again of only 20 per cent., and while one must applaud his fairmindedness in exercising his discretion under the Act, I find it very difficult to see why, having made that decision, he then awarded Mr. Norgate only what I would call one-fifth of justice.

As a result of the General Election of February, 1950, I became the Member for Lewisham, West and the case came to me. I pursued Mr. Norgate's fight for justice with the result that in July, 1950, the 20 per cent, assessment for the period February, 1943, to November, 1946, was increased to 60 per cent. I hope it will be fully realised that at every stage the Ministry have been forced back with great reluctance from the stand they have previously taken.

From the period November, 1946, onwards they were forced from their first refusal to grant a pension at all, to granting one of 20 per cent.; they were forced then to abandon that view and to grant him a pension of 100 per cent.: they then, with generosity I think, agreed to give him a pension from February, 1943 to 1946, but only at 20 per cent.; and then they were forced to accept the justice of my argument and grant a pension of 60 per cent. Except in the matter of the Minister's discretion at no stage has the Ministry acted willingly. They have been forced to give way every time, and during the whole of this time the medical evidence has been the same. The only thing which changed has been the Ministry's attitude.

A less determined man than Mr. Norgate would have given up the struggle long ago with a grossly inadequate and unfair award, but at this stage he asked me to push his claim for a 100 per cent, pension from February, 1943, to November, 1946, and this Adjournment debate is the last stage in this struggle. Incidentally, he is also claiming that his unemployment supplement should be backdated, and I hope the Minister will not overlook that point.

I contend on the evidence I have so far given, which consists of little more than the factual history of the case, that there is quite sufficient justification for the Minister to cease all further opposition, but in order to persuade him to make the right decision now, I want to show him just how ridiculous two of the previous decisions were.

First I should say that nothing of this is the responsibility of my hon. Friend. It is entirely the responsibility of his predecessor, who in a letter to me dated 8th July, 1950, said:

But the second decision was, if anything, even more difficult to understand. It was an effort to justify the increase from 20 per cent, to 60 per cent., for which I had asked justification. My argument having been admitted—that 20 per cent, was wrong—how can they now claim that 60 per cent, was the right figure? What was the magic attaching to this figure? If 20 per cent, was wrong, why could not 100 per cent, be right?

In a letter to me dated 23rd December, 1953—written by my hon. and gallant Friend himself—the Ministry said: it is the same medical evidence which is now being used to justify an award of 60 per cent, for that period. The absurd illogicality and the complete absence of any consistency throughout these decisions is quite obvious.

I hope that my hon. and gallant Friend is not going to try to justify these decisions. I do not see how they can be justified. I ask him now to make the only right decision, and I would remind him that this decision has been consistently and unanimously supported by Mr. Norgate's two doctors—one in London and one in Bath—by a specialist at Lewisham Hospital and by the Maudsley Hospital, to which he was sent. All have agreed that his disablement is severe. Indeed, the Ministry's own doctor, who examined Mr. Norgate at Bath in 1941, agrees that he was very seriously injured. The counsel who took his case has taken a personal interest in the case ever since, and there are three hon. Members of this House, including myself, who support his case. All these people are united in supporting his claim up to the hilt.

The only people who have resisted it are those at the Ministry. I hope that my hon. and gallant Friend will now be able to tell me that at long last the Ministry has come to the conclusion that the ridiculous decisions to which I have referred have come to an end, and that it will now make the only decision possible, whioh is to give 100 per cent, justice in the case of Mr. Norgate.

12.48 a.m.

The Joint Parliamentary Secretary to the Ministry of Pensions and National Insurance
(Brigadier J. G. Smyth)

My hon. Friend the Member for Lewisham, West (Mr. Price) has taken a tremendous lot of trouble over this case, long before I had anything to do with it. He has gone into it with his usual thoroughness and has stated the case with considerable skill and in a very moderate way. It is very rare for a war-disabled personal case to be brought up on the Adjournment. During the three years that I have been with the Ministry of Pensions and, as it is now, the Ministry of Pensions and National Insurance, this is only the third case that has been brought up in ihis way. That shows that the House has considerable confidence in the sympathetic attitude adopted by the Ministry towards these cases. If we stretch the regulations a little occasionally, they are stretched in a very good cause.

I feel that this case illustrates the way in which the Ministry of Pensions and National Insurance is always ready to reconsider any claim if fresh evidence is produced, or if there is a conflict of medical opinion. This has happened, as my hon. Friend has said, on two or three occasions in this case, and always to the benefit of the pensioner. I shall not admit for a moment that this proves that the Ministry has had a weak case. Thank goodness we can alter our minds with changing circumstances in a desire to give every possible help to the pensioner. That is always the prime idea in everything we do in the Ministry for the war disability pensioners. Certainly that is so in my experience.

As my hon. Friend has said, this case has been dealt with by three different Ministers, but the case is comparatively new to me, though it is far from being a new one. Three years ago it was apparently concluded when it was brought before the hon. Gentleman the Member for Brierley Hill (Mr. Simmons), my predecessor in the Ministry of Pensions, and when he gave a definite ruling on it. My hon. Friend is bringing it up again, exactly the same case. There is no new evidence. It has, however, undergone in the new Ministry a fresh examination, and new doctors have considered it. I think that that is all to the good.

I want to concentrate on the main issue of this claim. The main issue is that the back payment we have already made for the period from February, 1943, to February, 1946, should be raised from 60 per cent, to 100 per cent. The question we have to ask ourselves is: Is this increase justified, and has the Ministry treated this unfortunate civilian, who is suffering from hysteria as a result of a bomb incident in 1940, fairly and generously or not? The point I would make most emphatically is that there was no obligation, in accordance with the regulations on the Ministry, to pay Mr. Norgate any pension before 12th November, 1946, which was the date of the application by Mr. Norgate's solicitors, after nothing had been heard from Mr. Norgate for three years. Strictly in accordance with the regulations there was no obligation whatsoever to pay any pension before that date, and yet the Ministry did, in 1941, allow Mr. Norgate's claim for injury allowance under the Personal Injuries Scheme, and gave him arrears back to the date of his injury, despite the fact that the claim had been time barred.

Not to the date of the injury; back to 1943. The date of injury was 1940.

In the first case back to the date of his injury. I am talking of the 1941 claim and the first Civilians' Personal Injuries Scheme. I think my hon. Friend is going a little ahead.

In 1948, when the appeal tribunal had ruled that the hysteria was due to war injury, we did again back date the claim by two years, to 12th November, 1946, and on 20th December, 1948, when the Ministry's medical board had assessed the injury at 100 per cent., we back dated it again to 12th November, 1946. On 31st January, 1950, when the hon. Gentleman the Member for Hayes and Harlington (Mr. Skeffington) made a claim for a third back payment to 1943, although we had heard nothing in the Ministry about Mr. Norgate between 1943 and 1946, we did allow that back payment from 1943 to 1946. My hon. Friend then, a few months later, asked for a still further increase to 60 per cent., which was agreed to, and I think that both my hon. Friend, and Mr. Norgate admitted in January, 1951, that the Ministry had not been ungenerous.

For three years we heard nothing of this claim at all; that is, from 1951 to 1953, and now my hon. Friend has brought up the matter again. I should state that we only make back payments of pensions in most exceptional circum- stances, and in this case, we have made back payments on two or three occasions. The matter of degree of assessment of pension over a considerable number of years is always a difficult matter, particularly in a disability such as this, which is not necessarily the same as the case of loss of a limb. In such cases, the Minister must act in accordance with the opinion of his medical advisers, and medical boards in 1943 and in 1946 assessed disability at 20 per cent. A board of 1948 said a 100 per cent. Having agreed that back payments should be made to 1943 as a special case, the question was what should be the assessment between 1943 and 1946.

Yes; medical boards in 1943 and 1946 assessed the disability at 20 per cent., and another in 1948, following the tribunal hearing, made it a 100 per cent.

Yes, Ministry boards. The Ministry of Pensions doctors in 1950 recommended that a fair and generous assessment would be 60 per cent., and the Minister of the day accepted that assessment. Over the last year a new chief medical officer, and his assistants, have re-examined this case and have given their opinion as coming to the same conclusion. I, personally, have read the voluminous file, and almost every note on the file, and I do entirely agree with the opinion of my predecessor in 1950 that the assessment of 60 per cent, for the period in question is both fair and generous, and I am sorry that I am not able to meet my hon. Friend to a further degree tonight.

Question put, and agreed to.

Adjourned accordingly at Two Minutes to One o'Clock.