asked the President of the Board of Trade in what circumstances imported textiles are permitted under his regulations to be sold in this country without bearing any indication of the country of their origin.

Those which neither bear a British name or trade mark nor are subject to a compulsory marking order under the Merchandise Marks Act, 1926.

Surely, the right hon. Gentleman has been receiving complaints of foreign competitive manufactures being received in this country without marks of origin, and in contravention of the existing law? Is he taking no steps about it?

If anything is done contrary to the existing law and the hon. Member calls my attention to it, I will see that the necessary steps are taken or that those able to take them are advised, but if there are firms who think that the marking should be extended further to other textiles not covered, it is open to them to apply to me for that purpose.

asked the President of the Board of Trade whether he has completed his inquiries into the evidence submitted to him of Japanese infringements of British designs; and what action he proposes.

This matter is now being discussed between representatives of the Lancashire and Japanese cotton industries. I hope that these discussions will lead to a solution of the problem.

Surely, the right hon. Gentleman knows that the discussions have been going on for months, that the origin of the complaint took place about 12 months ago, that a lot of evidence was submitted to him, and that all the information that I get is that no action has been taken, while the infringement is continuing unabated?

Quite a lot of action has taken place in consultation with the cotton industry. Japanese representatives have just been over in this country for consultation with the industry here, and they have given an assurance that on their return they will recommend to their industry the need for certain procedures to prevent the copying of textile designs. I understand that that visit is to be followed by a visit to Tokyo by representatives from Lancashire so that action has been taken.

Was it not laid down in the Japanese Peace Treaty that the Japanese Government should take action against copying of this kind, and can we have an assurance that that policy is still being followed?

I fully appreciate that. This is a complicated subject involving a pretty wide field, and I am as ready as anyone to see that this policy is carried out. The underlying purpose of the discussions is to find the best procedure by which it can be done.

Has my right hon. Friend taken the opportunity of the visit to this country of the Japanese Prime Minister to discuss this important subject with him?

Yes. Sir.

asked the President of the Board of Trade whether he will support a proposal for the progressive reduction of Customs tariffs during the General Agreement on Tariffs and Trade Conference to be held in Geneva.

Her Majesty's Government have co-operated with other Contracting Parties to the General Agreement on Tariffs and Trade in formulating proposals for the progressive reduction of tariffs. It would, however, seem to us difficult to come to any effective decisions until we know what contribution the United States may be enabled by future legislation to make for their part towards the reduction of tariffs, which can only be undertaken on a multilateral basis.

In view of that Answer, will the President make it quite clear that the world needs trade rather than aid, and that trade should not only be free but fair?

I find myself in general agreement with that view.

Will my right hon. Friend bear in mind that tariffs are not necessarily barriers to trade, but sometimes a means of regulating it?

asked the President of the Board of Trade his present policy with regard to the entry of Japan as a full member of the General Agreement on Tariffs and Trade.

This question was among those discussed recently with Commonwealth officials at the London Conference. I have also had some talks with the Japanese Prime Minister on this subject. Our eventual decision will depend upon whether an acceptable basis can be found to enable us and other countries to undertake relationships within the G.A.T.T. towards Japan without any violent disturbance of existing trade patterns or the development of disruptive or unfair Japanese competition.

Is the President aware that the attitude of the workers engaged in the pottery industry in Staffordshire is that this problem would be more easily solved if they had an assurance that the standard of life of the Japanese workers was beginning to approximate to that of workers in Britain, and that there is nothing they would like to see better than that?

I am always bearing in mind all these considerations.

asked the President of the Board of Trade if he will now remove the control on the importation of newsprint.

asked the President of the Board of Trade whether adequate supplies will be available in 1955 to enable newsprint to be decontrolled.

The balance of payments position does not as yet permit the removal of the control on the importation of newsprint, but I am at present discussing with the Newsprint Supply Company what further progress can he made and whether more freedom in the use of newsprint can be allowed in 1955.

Will my right hon. Friend remember that the difference between men and beasts is that men can read; and that it really is a very serious matter to limit the daily exercise of this priceless function?

I am to discuss this question of newsprint with the Newsprint Supply Company tomorrow.

Is the President of the Board of Trade aware that the 900,000 tons of newsprint which could be made available in 1955 would suffice to enable this restriction to be abolished without any fear about the balance of payments, foreign supplies, or anything of that kind?

Various statements are made about how much would be necessary to do this, that or the other. These matters, which are serious and difficult, are under discussion between me and the Newsprint Supply Company at the present time. I have a meeting with them tomorrow. I think we might wait the outcome of it before reaching any final decision.

What is the saving in dollars by means of these controls?

It is estimated that if freedom for this commodity, and the other consequential freedoms which would necessarily follow, went to their full extent, the burden on our overseas exchange would be about £40 million in sterling, a very substantial sum, not all dollars.

When the right hon. Gentleman is considering this matter, will he see that no steps are taken to make the publication of American horror comics easier in this country?

The problem of newsprint supply is already sufficiently complicated without bringing any further difficulties into it.

asked the President of the Board of Trade what steps he intends taking to negotiate a trade agreement with East Germany which will be of assistance to British firms wishing to increase exports to the East German market.

None, Sir. Her Majesty's Government do not recognise the East German authorities as the Government responsible for the Soviet Zone of Germany, and cannot, therefore, enter into official trade negotiations with them.

Is the Minister aware that, at the Leipzig Trade Fair, British firms exhibiting their goods found that they were at a hopeless disadvantage compared with their European competitors? Nearly every other country has a trade agreement, but the Herring Board has to do its business with East Germany by a process of barter. All this is handicapping British trade. Will the right hon. Gentleman look into the position and see whether something can be done to improve it.

The hon. Gentleman may be somewhat overstating the handicaps. All I am stating is the position. I am not in a position to enter into a trade agreement with a Government which is not recognised by Her Majesty's Government.

Is my right hon. Friend aware that there is something which he can do in this matter? Even to relax the barter arrangement a little would be most helpful to many ports in this country, and particularly to Great Yarmouth, from which herring can be sold to East Germany, which is a good market for them. We cannot make satisfactory arrangements by barter.

If there is anything, short of what I am asked in the Question about a trade agreement, that I can do to ease the individual problems of individual trade organisations, I shall be happy to look at it.

asked the President of the Board of Trade what assurances he has received from the Government of China as to what goods they have available for export in quantity, and at prices and quality that would compete in free world markets, in exchange for the goods they wish to import from the United Kingdom.

None, Sir. Nor indeed have I asked for such assurances.

In view of the fact that China sold much more to us last year than we bought from her, and that therefore she has goods available and can sell them at competitive prices, would my right hon. Friend see whether the embargo on what we can export to China cannot be lifted a bit further?

This Question deals with the other side of the trade, with what the Chinese have for sale to us. So far as that is concerned I have not, at a Government level, asked for allocations of goods because we do not conduct our trade in that way. It is done by importers in this country.

In view of the fact that the President confirms that last year China had goods available at qualities and prices which could compete in our markets, and that she was selling more to us last year than we bought from her, surely we could relax somewhat our export embargo in order that we can sell goods back to them instead of sterling?

Is the Minister aware that the request to do something to relax this embargo now comes from both sides of the House?

asked the President of the Board of Trade if he will take steps to require the Monopolies Commission to adopt a judicial procedure in place of their present procedure when conducting examinations.

My hon. Friend will appreciate that, as the Commission are not a court of law, and no code of law exists in this field, a judicial procedure in the strict sense would not be appropriate or practicable. Full consideration will, however, be given to any suggestions for procedural changes which are put forward.

Is my right hon. Friend aware that the procedural change suggested is quite small and would mean carrying with it the confidence of the businesses which are being examined? Is my right hon. Friend further aware that the change involved is merely that of making the Commission more of an arbitrator and less that of an inquisitor or prosecutor? Would not that be a quite simple change to make, one which would make a lot of difference in the public relations of this Commission and the businesses that were being investigated?

Quite a number of changes have been suggested from time to time over the past few years. Most of them are found on examination to present very considerable difficulty. If my hon. Friend has some particular change in mind and would like to tell me about it afterwards, I should be very happy to have a look at what he suggests.

asked the President of the Board of Trade why it is necessary to place a ban on the export to Poland of grinding and honing machines and multi-spindle automatic lathes, when British firms are able to supply these machine tools more cheaply than the countries from which Poland is at present drawing her supplies.

The export of certain types of these machine tools to Poland and other Soviet bloc countries is forbidden under the strategic control arrangements agreed with other countries.

Is the right hon. Gentleman aware that at the Leipzig Exhibition any amount of these machines were on offer which countries covered by the embargo list could buy, and therefore that the present effect of the embargo in practice is to deny business to British exporters without denying supplies to the purchasing countries?

I think not. The purpose of strategic control is to ensure the opposite, namely that all the countries concerned in this matter should agree together what should be prohibited and what should be permitted to be sent. Such a list has been drawn up. Some machine tools are on the list and some are off. I think that the ones referred to in the Question happen to be embargoed.

Is it not clear that the purpose of the embargo has not been achieved, since Poland and the other countries are able to buy all the machine tools they want, but not from us?

If hon. Gentlemen have any evidence—[Laughter.]—we have asked for evidence on several occasions and so far such evidence has not been forthcoming. If such evidence is available we shall be happy to look at it.

I have already offered the evidence to the right hon. Gentleman, namely, that if he or any of his officers had been at Leipzig he would have found it possible to buy, as a Briton, or a Pole, or anyone else, any quantity he wanted of these machines.

That is an answer in general terms. If the hon. Gentleman can specify to me some machine tool which is embargoed under the agreement with other countries in Europe and which is in fact, being sold by one of them contrary to that agreement, I shall be happy to look into it.

Does not the right hon. Gentleman think that the evidence produced by my hon. Friend the Member for Reading, South (Mr. Mikardo) is sufficiently detailed for him to set up some examination?

So far I have not received any evidence at all.

asked the President of the Board of Trade (1) the total number and value of applications for licences to export machine tools to the Union of Soviet Socialist Republics which were under consideration on 6th July. 1954, and have since been granted;

(2) the total value of the machine tools for which licences have been granted and refused, respectively, in the last six months for export from this country to the Union of Soviet Socialist Republics.

In the last six months applications for permission to export a complete rolling mill and tinplating plant worth together over £10 million have had to be refused. Licences for £11 million worth of machine tools have been granted and £3 million worth refused. This represents the granting of 116 of the 150 licences outstanding on 6th July last. Seven of the remaining applications, for machine tools worth about £3 million, were withdrawn by the applicants.

Is it not clear from the right hon. Gentleman's answer—for which I thank him—and from previous answers given to similar Questions, that in the overwhelming number of cases where applications are made, especially with regard to machine tools, many months generally elapse before the applicant is told whether his licence is to be granted or refused, so that British businessmen are in great difficulties about making their export plans? Cannot the right hon. Gentleman speed up this process of giving a simple answer to a simple question—a simple "Yes" or a simple "No"—which is all the applicants want?

I should have thought that that statement would have been true about the situation as I found it, but I do not think it is true today, because I have been able to re-negotiate a much shorter and much more straightforward list of goods, which has been published, as a result of which everybody should know where they are and whether their goods can be freely sold or are subject to embargo.

Is not the right hon. Gentleman aware that now, three years after he came to power, his supporters in another place are charging him with setting up a Soviet State? Does he not understand the implications of this?

It is not quite in order for me to contemplate what is happening in another place.

Does not the right hon. Gentleman realise that even the most carefully drawn up list of goods is liable to omit large quantities of products which never precisely fit into any item in the list, and concerning which therefore, an ad hocapplication must be made? Will he see that these ad hocapplications are dealt with much faster than at present?

They are, of course, being dealt with much faster than they were under the previous system as I found it. Indeed, one of the purposes of the arrangements which we have now made is to speed things up in order to prevent these goods from going to destinations which might be dangerous, and to expedite trade where that might be safe.

asked the President of the Board of Trade whether, following the publication of the lists of goods controlled for export to the Union of Soviet Socialist Republics, he will now publish a similar list indicating which types and tonnages of ships, floating cranes and dredgers are still embargoed for export to the Union of Soviet Socialist Republics and Eastern Europe.

Consultations about the strategic control of ships are not yet concluded. I think it would be better to defer publication of any list until the discussions have reached a conclusion.

While appreciating all that, may I ask the right hon. Gentleman to hurry forward this business, because there a good deal of anxiety in our shipyards? Is he aware that it is common knowledge that the Soviet is modernising its mercantile marine, and that orders are being placed in almost every Western European yard except British yards? I hope that the right hon. Gentleman will at any rate speed up these consultations.

I have the matters to which the hon. Gentleman refers and the interests of shipyards in Sunderland and elsewhere very much in mind. I am sure that he would not press me to come to an arrangement not in the interests of this country.

Will the right hon. Gentleman read once again the account of the offer which Mr. Ivanov Kabanov, the U.S.S.R. Foreign Minister of Trade, made to the British businessmen of orders for over 200 British ships; and will he also read the article in the "Financial Times" last week, in which it was stated that there are about seven European countries, in addition to Japan, supplying whalers, cargo ships and dredgers to the U.S.S.R.?

I will certainly read again the list which I have read before, but it is true that under the recent reform on strategic controls which I have managed to introduce no less than three-quarters of the goods mentioned by Mr. Kabanov are free for sale in this country.

Is it not a fact that the strategic list proposed by the Government at the time of the Korean war is now hopelessly out of date, even with the changes made by the right hon. Gentleman? If British industry is to hold its own, the list must be much wider so that it can sell its goods.

The list was out of date, and it has been revised in consultation with our friends, including many countries of Western Europe. When one has a revision of that kind, one has to take account of the views of all one's friends in the matter. I think that this is the best list at which we can arrive at present.

asked the President of the Board of Trade how many complaints he has received this year about infringements of the Merchandise Marks Acts; and in how many cases he has instituted legal proceedings.

Forty-one, Sir. Legal proceedings have so far been instituted in 12 cases.

Is the right hon. Gentleman prepared to say what has been the result of the proceedings that have been instituted? How many successes has he secured so far?

I think that in eight cases the proceedings have proved successful, in two unsuccessful and that two are still pending.

asked the President of the Board of Trade whether he will give an assurance that it is still the policy of the Government to secure a balanced distribution of industry throughout the country, in accordance with the declarations on pages 11, 12 and 13 of the White Paper on Employment Policy, Command Paper No. 6527, of 1944.

Yes, Sir.

In view of the expansion in the Greater London area of the motor industry which the President has recently approved, would he not agree that in spite of the general success of the distribution of industry policy there is still a need to steer new schemes away from congested areas like Greater London to other parts of the country that need them?

Yes, but I do not think that the general White Paper on full employment, which is the Paper referred to by the right hon. Gentleman, necessarily makes it obligatory to refuse an expansion of a particular firm in a particular area. The general policy remains as stated.

asked the President of the Board of Trade whether he is aware that the Granville Mill, Oldham, which has been operating as a weft and big cop spinning mill since 1884, has closed down on the grounds of foreign competition; and, in view of the resulting loss of employment and production, if he will make a statement of Her Majesty's Government's policy as to the cotton industry.

My information does not suggest that the closing of this mill is due to foreign competition.

Will the right hon. Gentleman answer two questions? First, will he say whether he has any policy for employment in the cotton spinning industry, particularly in view of the fact that there are now 13,000 fewer people employed in that section than in October, 1951? Second, will he say whether he has power to hold an inquiry into the closing of this mill, which had 97,000 spindles, employed 240 people, made a profit of £24,000, paid a dividend of 15 per cent., changed hands at £2 a share as recently as last June, paid £9,000 for loss of office by directors and was bought by a gentleman who before the war operated successfully as a mill knacker? Will the right hon. Gentleman inquire into this and let us know what the facts are, because the whole of the workers in the industry are concerned about the facts in this case?

As far as employment policy is concerned, I am glad to say that there are four vacancies for every man out of work. So far as this mill is concerned, I suggest that the hon. Gentleman himself might make a few inquiries in Lancashire about this matter. It is true to say that it was taken over as recently as last June by the present owners, who paid £2 for each £1 of issued share capital. At that time imports of foreign grey were running at about the same level as at the present time. On that basis, I think it very hard to contend that it was foreign competition which closed the mill.

I agree with the right hon. Gentleman. The only trouble was that had I not suggested that it was foreign competition, the Question might not have been allowed at all. But does not the right hon. Gentleman think that if a mill which ought to make money is closed down for tax reasons, he owes a duty to the House and to the public to say how this comes about?

That is a shocking charge to make.

The grounds upon which I could order an inquiry into operations of this kind are, as the hon. Gentleman knows, limited by legislation.

asked the Chancellor of the Exchequer, in view of the importance of good industrial relations, what action he proposes to take to ensure a reasonable policy of dividend restraint.

If there is a proper understanding of the full course of industrial dividends and of the part that dividend policy plays in our economy. I do not think there is anything in the present situation which need prejudice good industrial relations.

May I ask the Minister not to under-estimate the dissatisfaction that is felt on this matter, and, before it is too late, will he try to understand that many people are unsettled about it and expect that some real action will be taken in this very important matter?

I certainly do not under-estimate the importance of this matter, and that is why I am most anxious that a complete and proper understanding of the facts in the case should be widespread.

asked the Chancellor of the Exchequer if it is still his policy that there should be restraint in the distribution of dividends; and how he proposes to make his policy effective.

The answer to the first part of the Question is in the affirmative. My right hon. Friend considers that it is best to rely in this matter on the voluntary action of individual managements.

As the voluntary action has broken down, in the sense that profits distributed in the form of dividends over the last 12 months are higher than those distributed in the previous 12 months, what action does the Chancellor of the Exchequer propose to take?

My right hon. Friend has always made it clear that restraint on dividends, just as in the case of restraint on other personal income, is not the same as a complete freeze.

asked the Chancellor of the Exchequer what steps he proposes to take to restrain the present rise in dividends and ensure that a higher percentage of industrial profits is used for re-equipment.

asked the Chancellor of the Exchequer what action he is taking to implement his recent suggestion that companies should plough back a greater proportion of their profits.

It must clearly be left to the managements of individual undertakings to decide how profits should be allocated; and my right hon. Friend trusts that in doing so they will have regard to the great importance, in the national interest, of increasing the volume of industrial investment.

As the only practical effect of the appeal which the Chancellor made a few weeks ago has been that he has been publicly and flatly contradicted both by the "Financial Times" and by the chairman of the Stock Exchange, is he just going to sit idly by and do nothing at all?

There are signs that the rate of industrial investment is increasing. This criticism comes hard from a Member of a former Government whose last Budget was designed to reduce the rate of investment.

Can we have an assurance that there will be a consistency of attitude on the part of the Chancellor? The Chancellor having suddenly changed his attitude from that contained in all the replies which we had last Session, can we be assured that he will not change back again as a result of the bad time he had at the bankers' banquet?

I think that my right hon. Friend's attitude has been consistent in this, as in other matters.

Is my hon. Friend not aware that payment of good dividends is one of the best ways of attracting capital for investment?

It is a most important fact that if we are to have investment in new enterprises, the investors must be assured of a reasonable return.

asked the Chancellor of the Exchequer what evidence he has that British industry is placing to reserve considerably less than industries in many European countries; which countries are shown by his investigations to be reserving more; by how much more than in the United Kingdom; and, in each case, how much of the total gross earnings are taken away by taxation, as compared with the United Kingdom.

The available evidence is to be found in publications of the O.E.E.C. and relates to the level of investment in this country compared with the United States and other European countries. Exact comparisons are impossible owing to differences of definition and tax structure, but there is no doubt that we are investing a much smaller proportion of our resources than the United States and that we are investing less than Germany and several other European countries.

My right hon. Friend has not answered one important point about which I asked him. I asked whether foreign industries were paying as much in taxation as British industries, and my right hon. Friend has not answered that question. Further, will he bear in mind that if company profits were not taxed so heavily, more would be put to reserve, and that if our level of taxation were no higher than that on the Continent, the comparison would not be so bad?

I said that it was difficult to make an exact comparison of the tax structures of individual countries. As far as Germany is concerned, until recently, at any rate, the burden of taxation on its industry was slightly higher than in this country. As to the United States, the margin, although it is in the other direction, is probably not very wide. I certainly agree with my hon. Friend that the lower the level to which taxation can be reduced, the more opportunities companies should have and take to place to reserve.

Would the right hon. Gentleman agree that since the Chancellor of the Exchequer has made a reduction in taxation, dividends have risen?

Since my right hon. Friend has made reductions, so has investment.

Is the hon. Gentleman aware that the "Financial Times" recently published figures showing that, on the average, companies in this country distribute nearly four times as high a proportion of their profits as do countries in Western Europe?

I saw those figures in the "Financial Times," and I thought that the hon. Member might take the particular case of Germany, which is in great contradistinction to some of the other cases put.

asked the Chancellor of the Exchequer if he will make a statement on the recent negotiations concerning the salaries of university teachers.

My right hon. Friend hopes to be in a position to make a statement before long.

Can the hon. Gentleman say whether the Chancellor has had the recommendations of the University Grants Committee, and if so, how long he has had them in his possession? Does not the Financial Secretary agree that there has already been plenty of time for the Chancellor to consider this, and to make up his mind on what have been very protracted negotiations?

These representations reached my right hon. Friend in July. As the hon. Member knows, all these matters have to be negotiated through the University Grants Committee and the Committee of Vice-Chancellors, and the Long Vacation of the Universities has intervened.

asked the Chancellor of the Exchequer whether, in view of the rising price of tea, he will introduce concession price tea coupons for old age pensioners pending an adequate increase in the basic pension.

I am afraid not, Sir. I would refer the hon. Member to the explanations of the difficulties in the way of such a scheme given by my right hon. Friend the Chancellor of the Exchequer, and by my predecessor on 16th and 15th February, in answer to Questions by the hon. Lady the Member for the Gorbals (Mrs. Cullen) and by the hon. Member for Stockton-on-Tees (Mr. Chetwynd).

Is not the Financial Secretary aware of the special place that tea takes in the budget of old-age pensioners? Since he is unwilling to apply a control to the price of tea or to grant this sort of alleviation, will he at least ask his right hon. Friend to stop making imprecise promises about the increase in the basic pension, treat this as a matter of urgency, and give an undertaking to this House now that an increase in pensions will be granted to our old folk in time for Christmas?

I fully understand the importance of tea to old people, but this Question. I think, is based partly on a supposition that the tobacco duty relief scheme could easily be extended to tea. I should explain to the House that tobacco duty relief operates because there is a heavy duty on tobacco. There is no duty on tea. It would not be possible, therefore, even were it thought to be the right thing to do, to operate a similar scheme in regard to tea.

asked the Chancellor of the Exchequer whether he is aware of the public concern at the accumulation of large sums, over periods of many years, in arrears of Income Tax and Surtax by members of the entertainment professions; and whether he will make stricter regulations concerning collection of arrears of Income Tax and Surtax.

I share this concern, and would refer my hon. Friend to the replies given by my predecessor to the hon. Members for Ilford, South (Squadron Leader Cooper) and Liverpool, Kirkdale (Mr. Keenan) on 31st March and 1st April. As he then stated, the Inland Revenue has continuously under review the most effective means of assessing and collecting tax due from these and all other professions and occupations.

Is my hon. Friend aware that workers, who have their Income Tax deducted from their pay packet before they touch it, and small businessmen, professional men and so on who often find themselves pilloried in the courts for small sums, find the position very difficult to accept? There seems to be evidence that there is one policy for the small defaulter and another for the large. Can my hon. Friend say whether there has been any progress during the six months or more since the Questions to which he refers were asked and answered?

Might I also ask if there is not something rather shocking in the fact that men like Robert Newton can get away with about £40,000 of Income Tax while, in the last published figures, 31 people were sent to prison for sums which were trifling by comparison with that large figure?

I think that we all feel very strongly about those who attempt to evade the tax collector. There is, however, the difficulty that one cannot easily apply P.A.Y.E. to people in the entertainment profession because, in the main, they have not an employer. For that reason it is impossible to collect the tax under P.A.Y.E. at the source. I can only repeat that the Inland Revenue is constantly seeking new means to catch up on tax evaders, though some still slip through the net.

Might I ask the Minister to look at newspapers in which he will find a report about a case in my own constituency in which an hotel keeper is bankrupt, and one of the main items of bankruptcy is a terrifically large sum due for Income Tax?

If he will send them to me, I shall be very interested to look at the local papers from the hon. Member's constituency.

asked the Chancellor of the Exchequer if he is aware of the Income Tax concessions made to members of the entertainment professions in respect of expenditure on hospitality, clothing and other items; and what steps are taken by the Commissioners of Inland Revenue to ensure that all expenditure in respect of which such concessions are made is necessarily and exclusively incurred by the taxpayers concerned in the discharge of their duties.

Members of the entertainment professions are, like members of other professions, chargeable to Income Tax in accordance with the relevant statutory provisions. They enjoy no special concessions. In computing the profits of a profession chargeable to tax, no deduction is allowable in respect of sums not wholly and exclusively laid out or expended for the purposes of the profession, and I can assure my hon. Friend that the Inland Revenue uses all the means available to it under the law to ensure that inadmissible items are not allowed.

Does not the evidence show that many members of the entertainment profession, whilst enjoying a substantial portion of their income free of tax, manage to evade tax on the rest? Is my hon. Friend aware of two cases —one that of an actress who was allowed the cost of a mink coat as a chargeable expense, and the other the case of Diana Dors who draws £60 a week, £50 of which is tax free? Does he not feel that figures like that merit the closest scrutiny?

I am precluded from discussing in the House the affairs of individual taxpayers, but I will examine any information which my hon. Friend may wish to send me.

Can the Minister answer the second supplementary question which the hon. Member for Lewisham, West (Mr. H. A. Price) asked earlier, as to what precise steps have been taken by the Treasury in the interval of six months between the time the Questions to which the Financial Secretary referred were asked, and now?

I really think that in matters of this sort it is better not to say in public what precise steps the tax collectors are taking.

asked the Chancellor of the Exchequer whether he is aware that the recovery over the past three years of the gold and dollar reserves of the sterling area has been less rapid than that in the reserves of most other European countries; and what steps he proposes to correct this relatively unfavourable trend.

Yes, Sir. I am also aware that when the Government took office at the end of October, 1951, the reserves were running out at the rate of over 300 million dollars a month; and that from June, 1952, when the policies of the Government began to have effect on their inheritance, the rate of increase in the reserves compares favourably with that of other countries as a whole. I am further aware that in this latter period members of the sterling area have been repaying old debt to the International Monetary Fund and European Payments Union, and that on this score the U.K. alone has repaid over 200 million dollars recently.

Will the hon. Gentleman not agree, in view of the clear statement in the recent Report of the International Monetary Fund, that Europe as a whole has been doing better over the period in which this Government has been in office, the Government ought not to be either too complacent or too self-congratulatory?

Since June, 1952, the reserves of Continental Western Europe have risen by 18 per cent. and the reserves of the United Kingdom have risen by 70 per cent. I have heard legatees complain about their inheritance, but it comes singularly oddly from a testator.

Even though the hon. Gentleman has given a very ingenious answer, is he not aware that the dollar loans arising during the war were repaid throughout the period 1945 to 1951, and is it not a matter of some serious concern that according to the International Monetary Fund, which I imagine the hon. Gentleman does not dispute, the sterling area was the only large trading area which did not show a substantial rise in reserves between 1951 and 1954?

I have given the exact figures and I do not think their accuracy can be challenged. If the right hon. Gentleman is interested in financial assistance and loans and the repayment thereof, he will be interested to know that in the period during the Administration of his party the average net assistance received was over £300 million a year; under our Administration it is £38 million.

Is the hon. Gentleman aware that the whole idea of gold reserves is quite fantastic, having regard to the amount of gold that the Americans have buried at Fort Knox?

asked the Minister of Agriculture which counties have been affected by myxomatosis; and the number of cases which have been reported to him.

Myxomatosis in wild rabbits is now present in every county in Great Britain except Dumbarton, Roxburgh and Selkirk. The disease is so widespread that it is no longer possible to record individual cases.

Is my hon. Friend aware that there is practically no trade at all today in wild rabbits? Can he assure the House that there is no danger to humans from eating rabbits that have been infected with myxomatosis?

I am aware that the trade in wild rabbit carcasses has fallen away to nothing. The evidence with regard to myxomatosis affecting human beings or any other animals is that except for the infection of three hares, there has been no infection passing to any other kind of animal.

asked the Minister of Agriculture in how many cases there has been evidence of the deliberate spreading of myxomatosis; and what action he proposes to take.

I would refer my hon. Friend to the reply given on 21st October to my hon. Friend the Member for Exeter (Mr. Dudley Williams) and the hon. Members for Southampton, Itchen (Mr. Morley) and Test (Dr. King).

Can my hon. Friend say whether there is any foundation for reports that rabbits are already developing some resistance to this disease?

No, we have no evidence of that yet.

Is the hon. Gentleman not aware that not only is there widespread national indignation but a sense of national shame at what has happened about myxomatosis? Will he not use the Bill that is passing through the House to make, at any rate, the further wilful spreading of this disease illegal?

I think that matter could more appropriately be discussed on the Bill.

asked the Minister of Agriculture what progress has been made by the White Fish Authority in respect to the preparation, freezing, packing, storage, transport and handling of quick-frozen fish.

The authority is well advanced with the preparatory work for its commercial experiment in the quick-freezing at sea of distant-water fish, which is being grant-aided by my Department. The authority has drawn up a code of practice on the preparation, packing, storage, transport and handling of quick-frozen fish and have appointed trained inspectors at the main ports who are studying the working of the code in co-operation with the quick-freezers.

From the experience that has been obtained so far, is the Minister optimistic about the success of this experiment?

These are very early days yet. This experimental ship has not yet gone to sea, and it would be premature to express an opinion for another 12 months or so.

asked the Minister of Agriculture what progress has been made in the programme for agricultural expansion.

The net agricultural output for 1953–54 is estimated at about 55 per cent. above pre-war, compared with 43 per cent. in 1950–51 and 52 per cent. in 1952–53.

Can the Minister understand the farmers being a little dissatisfied, or does he think that they are being a little unrealistic?

I think there has been quite a satisfactory rate of progress.

asked the Minister of Agriculture whether he will make a statement on the recent representations he has received about the difficulties farmers are meeting in disposing of bacon pigs; and how far bacon imports from Denmark and the Republic of Ireland are aggravating these difficulties.

Free markets with comprehensive guarantees for the producers as a whole, and for individual producers, have been restored for all fatstock, and the Government are convinced that this represents in present circumstances the best system for marketing pigs as well as other stock. The difficulty over the marketing of pigs has been due, not to imports of bacon, but to the fact that the number of pigs offered to bacon factories has far exceeded their curing capacity. This has been caused by the disparity between the price paid for pigs of bacon weight and the prices for pork pigs in the open market.

My right hon. Friend has discussed the position with representatives of the producers, who have informed us that they are examining the problem of reducing this disparity in prices. Further intervention by the Government would be likely to disturb rather than improve the marketing arrangements. My right hon. Friend, in his capacity as Minister of Food, is now suggesting that his Joint Advisory Panel, which consists of representatives of all the interests concerned, should discuss the position at the next meeting of the panel.

Is it not true that while the Government were encouraging the greater production of pigs, they did nothing whatever to increase the capacity of the bacon-curing factories?

This is not primarily a matter of the bacon-curing capacity of the factories. About half the production of pigs goes to the pork market and half to the bacon market.

Does my hon. Friend's answer apply equally to the import of live pigs from Ireland?

The import of live pigs from Ireland is, as far as I know, negligible. There is a certain import of pork from Ireland and a certain import of bacon, but it is a very small proportion of the total.

asked the Minister of Agriculture whether he is aware of the reduction in the area of tillage of 378,000 acres; and what action he proposes to take to arrest this decline and to increase food production.

I am aware of the reduction in the tillage area this year to which the hon. Member refers. This is mainly due to a reduction in the area under feed crops. The net effect of this will depend on the use made of the increased area of grass. Half of this has gone into the more productive temporary grasses, and it would be premature to assume that there will necessarily be a fall in total food production. All these matters will be taken into account in the statutory review of the economic conditions of the industry, early in 1955.

Does the hon. Gentleman accept that this is a tangible piece of evidence of the failing confidence in this Government on the part of the agricultural community?

No, certainly not.

asked the Minister of Agriculture whether any recurrence of disease among Landrace pigs has now been reported.

Since 1st July, one further outbreak of infectious atrophic rhinitis has been confirmed in Landrace pigs in Cheshire, bringing the total to date in Great Britain to four, one of which was in Fife.

May we take it that time enough has now elapsed for us to be reasonably confident that there will not be further outbreaks of this disease among Landrace pigs?

It is early to give a conclusive reply, but progress is very encouraging.

asked the Minister of Agriculture if he will now favourably consider an egg and poultry marketing scheme, in view of the detrimental effect prevailing uncertainty as to future policy is having on the industry.

asked the Minister of Agriculture what progress has been made towards a marketing scheme for eggs and poultry; and whether he will make a statement.

asked the Minister of Agriculture if he will make a statement concerning the marketing of eggs.

Discussions with the N.F.U.s on the future arrangements for egg marketing, including the question of a producers' marketing board, have been proceeding and the unions' comments on proposals put to them and certain counter-proposals by the unions were received at the beginning of this month. Ministers have now considered this communication and the discussions with the N.F.U.s will be resumed shortly.

Will the Minister take care during these discussions to see that the consumer interest is not overlooked?

Certainly. We shall see that there is a proper balance between consumer and producer interests.

Can my hon. Friend assure us that there is no withdrawal from the position of the Government being in favour of producer-marketing schemes?

That is still the Government policy in appropriate cases.

asked the Minister of Agriculture what steps are being taken to protect the lives of residents and agricultural and other property immediately to the west of Bradwell Quay, Essex, where no work has been done to strengthen the sea wall since the first-aid repairs after the flood of January-February, 1953; and why this part of the sea wall has been neglected.

These defences protect a small area of land in which there was no loss of life in the exceptional flood of last year. The river board informs me that the defences in this area have been restored substantially to their pre-flood strength, first-aid repairs having been strengthend by backing the wall where breaches occurred. The board will consider the need for improving the defences in this area in due course: but it does not regard the matter as one of immediate urgency.

Is the hon. Gentleman aware that the river board informed me a month or two ago that it could not do very much about this place because the residents there are not subject to drainage rates? Is that really the reason why they are not to be protected? Even if fortunately, no lives were lost last year, is it not the case that many of the people living there are below high-tide level, and is not the Minister particularly concerned about the agricultural land?

No, the consideration of drainage rates, although something we should take note of, is not the main consideration. The broad policy is to restore the sea defences to the pre-1953 flood level except where there is a large population, industrial plant or exceptionally large areas of agricultural land. In this case there is no justification for raising the level of the defences immediately.