asked the Minister of Education, in view of the increasing population and overcrowded classrooms, what special steps he will take in the coming year to increase the school-building programme in Newcastle-under-Lyme.

I believe that the programme already approved is sufficient to meet the immediate needs of the area, and I am not at present contemplating any special measures.

The Minister may believe that, but Newcastle-under-Lyme Education Committee does not. Is the Minister aware that Newcastle-under-Lyme Education Committee has persistently put in what it regards as minimum requirements and that these have been persistently reduced by the Ministry, as the result of which the situation has become worse and not better? Will the Minister now investigate the situation to see if he can give the educacation committee a fair chance of catering for the children?

Very considerable investigation has been carried out in the normal course, and two schools have been approved in the current programme. They are principally for the new housing areas. I understand that some other proposals were not thought to be justified in the general context of the difficulty in which the country is of providing first of all for the bulge.

asked the Minister of Education what is the approximate average annual cost of books per pupil in primary and secondary schools, respectively.

About 10s. and 24s.

Will my right hon. Friend see what he can do to ensure that there is no undue economy on the provision of books? When considering pressure for buildings and for more teachers' salaries, transport, and so on, will he not forget that the expenditure on books is one of the most important contributions to education, and will he ensure that there is not unreasonable economy in that provision?

I would agree with my hon. Friend in that, but the general principle, even in this sphere, is value for money.

Is the Minister aware that there never was a time in the history of the country when so many excellent school books were produced, and yet most of them are out of the range of the teachers because no local authority in the country is spending enough on books for schools?

I take note of what the hon. Member says.

asked the Minister of Education whether his attention has been called to the action of some heads of infants' schools who are insisting that all pupils should wear some form of uniform; and whether he will issue instructions to such heads deprecating this practice.

This is a matter for the local education authority.

Will the right hon. Gentleman give some indication to the local education committees as to what he feels about it? Does he realise that this is a big imposition on many parents who do not want their children to be regarded as different from others in the school? If the right hon. Gentleman is not prepared to do something about it in this manner, is he prepared to recomment to the Treasury that it should pay the difference between the cost of the children's normal wear and that of their school uniform?

I hoped the hon. Member might be satisfied if I said that this is a matter for the local education authorities. I think it is properly a matter for them. At the same time, it is very rare for infants to have a uniform and this seems right to me.

Miss Burton.

On a point of order. Will the Minister be good enough to say what he meant by, "This seems right to me"?

Not now. We have passed from that Question.

asked the Minister of Education whether the United Kingdom delegate to the United Nations Educational, Scientific and Cultural Organisation has yet been invited to participate in the Organisation's study of the place of sport in education; and what reply has been given to such invitation.

There is no outstanding invitation to the United Kingdom to take part in a study of this subject.

Is the Minister aware that I am trying to elicit information on this point? As we are members of U.N.E.S.C.O., may we assume that if our delegate is invited to take part in any particular work there, apart from the merits of the case, he will accept such an invitation?

The position is that there was an invitation some time ago which was declined for what were thought to be good reasons, namely, the desire to keep U.N.E.S.C.O. to the most practical and worth-while subjects. On the other hand, I have read the Report and, while it is interesting, I must point out that the English idea of sport is such that the English do not like professional professorial discourses on sport. At the same time, I can see that there is some rather interesting information, perhaps, for some countries which are backward in education matters.

asked the Minister of Education what proposals he has for building new schools during the 1959–60 building programme to replace inadequate, unsuitable or out-of-date accommodation.

I cannot say anything yet about this programme.

Is my right hon. Friend aware that up and down the country there are a number of schools which urgently require rebuilding? Does he not agree that in this modern day and age, when improved education is so necessary in the national interest, it is time that the Government decision not to replace the existing schools should be reviewed as a matter of urgency?

Yes, Sir. I appreciate my hon. Friend's pertinacity in the cause of this fine and ancient school, and perhaps it would be best if we returned to the subject on his next Question which deals with the matter.

Although there seems to he some difference behind him about what exactly are the right objects of educational expenditure, is the right hon. Gentleman aware that there is an interesting enthusiasm for more expenditure in one direction or another, and will he pay some deference to that opinion?

There is no doubt throughout the country that we want educational progress, and there is undoubtedly a feeling of frustration in the educational world because we are having to cope with the bulge and because so much of our tremendous effort in building is having to go in that direction, thus preventing us from making progress in quality, which we very much want to do.

asked the Minister of Education if he is aware of the concern felt in Taunton and the surrounding countryside at the inadequacy of the premises housing Huish's Grammar School; that there is an urgent need to build a new three-stream entry school; and what action he proposes to take to remedy the situation.

Yes, Sir, and I agree that a new school is needed as soon as circumstances permit. I cannot yet say when this will be.

While thanking my right hon. Friend for the sympathy which I know he feels for this very worthy cause, may I ask him whether he is aware that boys attending the school are being taught in a 1919 United States Army hut which is in so bad a condition that the walls and the floor do not even meet, that there are only seven lavatories in the school for 450 boys and that accommodation is totally inadequate? Is he not aware that I have just presented a Petition signed by the remarkable number of 17,600 people in Taunton? Will he give a date when he thinks that this work may begin?

To give my hon. Friend a definite date is exactly what I cannot do today, but he can rely on the fact that I am very sympathetic about this very important matter.

On a point of order. In view of what I must describe as an unsatisfactory Answer, I beg to give notice that I shall endeavour of raise the matter on another occasion.

asked the Minister of Education how far local education authorities have been required, since May, 1956, to estimate the number of children in their areas requiring day and boarding places, respectively, in special schools for the educationally sub-normal, and not at present attending such schools; and what are the figures of the latest estimate.

The special return made in May, 1956, has not been repeated, but in a return on a rather different basis in January, 1957, local education authorities informed me that 7,210 children were awaiting places in special day schools and 6,612 places in boarding schools.

Does the Minister remember that it appeared from the last Report of his Ministry on this subject that the returns which we have had on this matter were rather misleading? Is he arranging that in subsequent Reports we shall have returns which will give a correct picture?

I certainly hope to do that.

asked the Minister of Education how many grammar schools have been completed in England and Wales during each of the last five years; and how many of such schools are planned to be commenced during each of the next five years.

Since the Answer contains a number of figures, I will, with permission, publish it in the OFFICIAL REPORT.

As a great number of these schools have been built, is it not quite extraordinary that there should have been such delay, for more than a quarter of a century, in the rebuilding of Huish's Grammar School, which has just been mentioned and in which I must disclose an affectionate interest as an old boy?

I hope that my hon. Friend will take some comfort from the answers which I gave earlier on that subject, because he will be justified in doing so. It is interesting and satisfactory to note that during the last five years there has, broadly speaking, been a strong upward tendency in the numbers of new grammar schools built each year and also in the number of major extensions added to existing schools. For this coming year there will be about 30 new grammar schools and 100 major extensions.

asked the Minister of Education whether he has received the copy of the resolution passed by the Workers' Educational Association protesting against his department's Education Circular 334; and whether he will agree to meet representatives of the Association to discuss their protest.

Yes, Sir, and I have already written to the hon. Member about it.

Is the Minister aware that one of the presidents of this excellent organisation is his right hon. Friend the Home Secretary? May I suggest that he has a word with the Home Secretary to see whether that right hon. Gentleman will lead the deputation to the Minister?

The association has not asked to bring a deputation to me.

asked the Minister of Education if, in view of the triennial review of university awards, the expansion of the universities and the fact that eight years have passed since the matter was examined, he will now set up the working party, envisaged by the then Parliamentary Secretary in debate on 29th November, 1956, to examine the whole basis of university awards, the selection of students and related questions.

I am considering these matters, but I am not yet in position to make a statement.

As this matter has been under consideration for about 15 months, and is causing great concern in the educational world, will not the Minister take urgent action to deal with it, and, in particular, with the need for a clearing house or other arrangement for university entrants and the division between central and local funds for the scholarships themselves?

I am expecting to receive the recommendations of the working party which has been conducting the triennial review and to announce decisions on them as soon as possible—that is, the new rates which will take effect from this autumn.

asked the Minister of Education if he is now in a position to redefine the aims of the Youth Service and the sphere of its future activities.

Yes, Sir. I regard the Youth Service as a permanent part of the education service, concerned with the leisure time activities of young people, especially those who are no longer at school. I regret that I cannot make more money available for it now, but I am convinced of its value and of the importance of the work done by those engaged in it. I intend to encourage and foster their efforts as much as I can.

Is the right hon. Gentleman aware of the very severe neglect, with some of which he has been charged, of the Youth Service in the past and which has led to the loss of some of its very best personnel? As there will be between one-third and one-half more children between the ages of 15 and 20 in the next five years and as it is already difficult to place school-leavers, is there not need for an extended service with more guidance?

The misunderstandings which have arisen in the relatively recent past have been because the Ministry, not having more money available to give to the Youth Service in accordance with the normal procedure, has felt that it ought not to encourage it too much. On the other hand, I frankly told a deputation from King George's Jubilee Trust recently that I could not at present make more money available but that I would do everything else I could to help the service. I also made it clear that we regarded the service as important although we could not at present spend more money on it.

Will the right hon. Gentleman elaborate what he meant by doing everything else he can to help to service?

The deputation attached importance to a statement by me on behalf of the Government of the value that the Government attach to the Youth Service. This afternoon I have taken advantage of this Question to do that, and it will be appreciated in certain quarters in the service.

asked the President of the Board of Trade what is being done to encourage a uniform method of describing man-made fibre fabrics as an important step towards informative labelling of textiles so that many of the difficulties now being experienced by the public, laundries, dry cleaning and dyeing firms through lack of information will be removed.

The British Standards Institution has recently published a standard setting out a uniform method of describing man-made fibre fabrics. This was prepared in consultation with all sections of the industry and with wholesalers. makers-up, retailers and consumers, who will presumably now make use of it.

In view of the fact that there are numerous new fibres which are making textiles so complex that even experienced retail buyers find them a mystery—and bearing in mind all the hard work to which the right hon. Gentleman has referred—is it not obvious that for the benefit of all concerned, and especially the public, we should have something more definite than a pious hope that manufacturers will take up this informative labelling so as to avoid undue waste, which the country cannot afford? What is the Minister doing to encourage this?

I believe that they will take it up, but it is not Government policy to have compulsory labelling.

asked the President of the Board of Trade whether he is aware of the concern of manufacturers and consumers at the fact that anyone may issue a certificate of quality for goods, which certificates are frequently based on trivial standards; and if he will be prepared to introduce legislation on the matter.

I am not aware of any widespread concern. A critical approach by purchasers to these certificates would be more effective than legislation.

Is the President aware that he is fortunate in not having to purchase these goods? Furthermore, what does he propose should be done to merchants who sell goods stating that they have been tested by XYZ—and using that fact as a selling recommendation—when in reality they have been tested and failed by XYZ? Does he propose that there should be no redress?

I am told that it is exceedingly difficult to take legislative action in this matter. We have no powers at present. By and large, it is a question of judgment as to quality. A man may say, "My beer is best," but it cannot very easily be proved.

Is the Minister aware that he is on the wrong tack? How can a person tell that the goods have been failed by XYZ unless the label says so? No merchant in his right senses is likely to say so.

The publicity which the hon. Lady gives to these matters is doing good, but this is not a case where we can proceed by compulsion.

On a point of order. In view of the unsatisfactory nature of the reply—and if it is possible to get round the question of legislation—I beg to give notice that I shall raise the matter on the Adjournment.

asked the President of the Board of Trade if he will make a statement concerning the merger of the Consumer Advisory Council of the British Standards Institution with the Consumer Research Association; and what effect this will have on the Government grant made to the Institution.

Formal discussions between the two bodies have not taken place and it would be inappropriate to comment on an idea which is still the subject of preliminary discussions within each body.

When do these discussions cease to be preliminary? Is the right hon. Gentleman aware that this has been mooted in the Press since the beginning of December? Is he further aware that on 9th December The Times stated that this matter was to be discussed by the Council of the British Standards Institution at its meeting in the middle of February? As we have now arrived at 20th February, can the Minister say whether that meeting has taken place, and, if it has not, when is it likely to be held?

Many things which are mooted in the Press do not come to much. As far as I know, no formal discussions have yet taken place.

asked the President of the Board of Trade, in view of the importance of the tourist trade, if he will consult with other Departments and trading interests concerned to improve at Dover the reception and clearance of visitors.

If the hon. Member can produce adequate evidence of unsatisfactory arrangements at Dover, I will consider arranging the consultations he suggests.

Is the right hon. Gentleman aware that I will produce these complaints, which have been handled by many Government Departments? It is obvious that somebody should try to co-operate in order to see that people who return here or visit us from overseas find a little more order at Dover and a better welcome than they are getting at present. I will provide the Minister with the information.

asked the President of the Board of Trade if he has received the report of the Exhibitions Advisory Committee on its review of the present practice and policy on overseas trade fairs; and what changes he proposes to make.

The Committee submitted a report in July of last year and I am circulating in the OFFICIAL REPORT a summary of its conclusions. I have accepted them in principle and propose to act on them as the occasion arises, within the limits of the money available. I hope to receive further advice from the Committee from time to time.

In view of the hash that we are making of the Brussels exhibits, does not the right hon. Gentleman think that the time has come for him to do something? Is he aware of the highly unfavourable criticism of our exhibits in the Press and elsewhere; that because of a lack of information our three oast-houses have been described as the three monkeys—see nothing, hear nothing and say nothing—that the concentration has been upon pomp and pageantry; that there is nothing about practical achievements, and that Zeta is hardly mentioned? Is he prepared to do something about this?

The hon. Member has taken much more trouble over his supplementary question than he has over helping British exports.

asked the President of the Board of Trade whether his attention has been called to the excessive increases which have been made recently in the cost of repairing various types of domestic equipment; and whether he will consider calling together a conference of the leading trade associations concerned with a view to seeing what action can be taken to control such increases and to prevent excessive profits.

asked the President of the Board of Trade what steps he proposes to take to investigate and control the recent widespread excessive increases in the prices charged for the repair of radio, television and other electrical apparatus.

I am clear that repair charges are a matter for the customer. The right course is to leave publicity and competition to keep the charges reasonable.

Does the Minister realise that that is a very unsatisfactory Answer? It is estimated that of the 14 million households in this country least half have television sets, and that the people concerned are quite ignorant as to what repairs are necessary when anything goes wrong? Something should be done to see that the public is not fleeced in any way when these repairs are carried out. Is the Minister satisfied that he is doing anything at all in this very important matter which is causing considerable anxiety?

The size of the market mentioned by the hon. Member proves what a lot of competition there must be. Neither the Minister of Supply nor I has any power to control repair charges, and I do not see how we could do it.

Is the Minister aware that that is not only completely unsatisfactory but contrary to the exposures which have already been made in the Press? Is he aware that the Daily Mail of 21st January carried an article headed "Repair racket. Dealer who charged five times the price"? Is he further aware that many of us are receiving complaints of this sort of thing, as well as having personal experience of it, week by week? Surely it is the duty of the Board of Trade to use its power to protect the consumer.

I read the article in the Daily Mail with interest, and I am sure that it will have done good. We have not had many complains in the Board of Trade and, as I told the hon. Member for Leicester, North-West (Mr. Janner), we have no powers to control repair charges.

Do the President's answers mean that he does not propose to take any action in the direction of protecting the public?

The publicity that we are now giving the matter—with the aid of hon. Members opposite—will do some good, but I do not propose to take any legislative powers.

Get the "Co-ops" to put it right.

asked the President of the Board of Trade whether his Department will build factories in advance of demand from individual firms, in South-West and North-West Wales in order to expand employment there.

In North-West Wales, which is not a Development Area, four factories have been built with the help of the Development Fund, and two further factories are due to be built there.

Is not the present situation in South-West Wales the worst unemployment crisis that we have had in any part of the country since the war? Does it not call for some exceptional and urgent action by the Board of Trade?

Yes, and that action is being taken. There is now a committee in South-West Wales considering what can be done with the eight—as I believe it is—tinplate mills which have been closed.

asked the President of the Board of Trade whether he has considered the experience of Northern Ireland in respect of the value of advance factories in the promotion of industrial expansion; and to what extent he is now willing to encourage the provision of advance factories in Scotland.

The Northern Ireland authorities consider that the provision of advance factories has helped to attract industry. But the money available for Government-financed factories in Great Britain is limited, and it seems better to spend it on the specific requirements of individual firms than on building with no tenant in view.

Does not that Answer contradict the experience of Northern Ireland? Has the right hon. Gentleman made any analysis of the two situations? Why should it be better to build advance factories in Northern Ireland but not in Scotland? Is there any difference in the experience of trade or the industrial situation in the two parts of the country which would suggest that different policy?

The unemployment level in Northern Ireland has been, roughly, twice that of Scotland and, therefore, the House agreed on exceptional measures. I am fairly sure that the building of advance factories in this country would not be the most useful way of spending the capital available.

In view of the fact that past records show that advance factories were taken advantage of in Scotland to a great extent, and as Scotland looks as though she will suffer very severely under the new naval programme, will my right hon. Friend consider this whole question again?

I am considering it with my colleagues, but at the present time I think it better to wait until we can get an industrialist who says what kind of factory he wants.

Wait till the crisis hits us.

Is the President aware that the rate of unemployment in Scotland is at least twice that of England and that in one town the rate is up by 8 per cent.? This is a serious matter for an industrial district. Is he aware that in Scotland, South Wales and Northern Ireland advance factories have proved themselves to be the only way to attract industry?

For that reason two-thirds of the expenditure approved for the Development Areas last year was for Scotland.

Is not the finance available for this work limited only by the decision of the Government, and as, since the war, advance factories have repeatedly proved to be the quickest way of bringing help to an area, why does not the President pursue that policy?

I do not believe that in present circumstances advance factories would attract tenants.

asked the President of the Board of Trade if he will place his proposed new Regulations regarding weight tickets on food, fruit and vegetables in the Library and send copies of his proposals to hon. Members on request.

I will, on request, send any hon. Member a copy of the letter in which the Board consulted interested organisations about certain proposed changes in the law. The Regulations themselves cannot be drafted until representations from all these bodies have been considered.

May I express to the hon. Member my appreciation of these proposed changes because they indicate the end of a campaign? Would not the matter be much more effective if housewives were informed that it will be an offence for traders to sell a wide range of fruit and vegetables without weight tickets being clearly marked?

I appreciate the remarks which the hon. Lady has made. It would be better first to publish the Regulations before issuing advance information about what they may contain.

asked the President of the Board of Trade whether his new Regulations regarding stated weights on fruit, vegetables, etc., will be in operation this summer.

No, Sir.

I am disappointed that these Regulations cannot be brought into operation this summer. The proposals would delight the housewives and would have the effect of stabilising prices. While it is known that Regulations regarding alcoholic liquors and soft drinks are to be postponed, is it not possible to bring the soft fruit Regulations into operation this summer?

No, Sir. We are in difficulties here with the timetable. We have to obtain the views of the industries concerned on the draft Regulations. After the Regulations have been approved by both Houses of Parliament, in the case of one set of Regulations there has to be a waiting period of six months which is imposed by the Act.

asked the President of the Board of Trade what steps he is taking to introduce new work into areas now suffering from unemployment due to cessation of aircraft orders.

My right hon. Friend the Minister of Labour and National Service tells me that there is no area where cessation of aircraft orders has resulted in an appreciable addition to unemployment. The Board of Trade will continue its efforts to steer new industry to places in special need of additional work, whatever the reason for this may be.

Have not there been discharges of labour for this reason in Northern Ireland, apart from other areas?

I shall have to have notice of that question.

asked the Chancellor of the Exchequer whether he is aware that the present provision by which a 90 per cent. rate of Purchase Tax is applied not only to all toilet preparations but to the packages, containers and bottles in which they are supplied, imposes a severe handicap on the export business of the toilet preparations industry in this country in so far as in many cases it may necessitate having different packages for the home and export market; and whether sympathetic consideration may be given to this matter at an early date.

My right hon. Friend has received representations on this point and has undertaken to bear them in mind.

Yes, but is my hon. and learned Friend aware that four months ago I put this point to the President of the Board of Trade and that it is proving gravely detrimental to exports of British toilet preparations and the use of the most modern scientific containers, such as aerosol? As it is essentially a matter of interpretation and not change, would my hon. and learned Friend give a direction for the proper interpretation to be made at an early date?

No, Sir. I do not think it is a pure matter of interpretation, but my right hon. Friend has in mind what my hon. Friend has just said.

It is a very good point all the same.

asked the Chancellor of the Exchequer whether he is aware of a ruling by the Customs and Excise authorities that whereas tooth brush racks are only chargeable to Purchase Tax at 30 per cent. under Group 11, tooth brush holders which are personal to the user are chargeable at 90 per cent.; and what machinery exists to decide what tooth brush holders are personal to the user for the purpose of Purchase Tax charges.

Toothbrush racks are taxable at 15 per cent. They are bathroom fittings and are quite easy to distinguish from toothbrush holders, which are carrying receptacles.

Yes, but this invidious distinction gives preference to the communal use of toothbrushes which ought to be discouraged in the interests of personal hygiene. Has not the Treasury perceived that in all these years? Why should not toothbrush holders and racks be freed from Purchase Tax altogether as essential to personal cleanliness and hygiene?

I think that my hon. Friend is mixing up bathroom fittings and carrying receptacles.

asked the Chancellor of the Exchequer whether he is aware that, whereas plan file chests are at present only liable to Purchase Tax at the rate of 5 per cent., plan file chests if combined with drafting tables are subject to tax at 30 per cent.; and whether this anomaly may be rectified at an early date.

Plan file chests combined with drafting tables are, like other office furniture, charged at 15 per cent., and not 30 per cent. In answer to the second part of the Question, I would refer my hon. Friend to the reply given to him on 19th November.

Whether the rate of tax be 15 per cent. or 30 per cent. is irrelevant. Is it not a fact that there is a distinction in the rates of tax as between a plan file chest sold by itself and one sold with a table? As both these articles of equipment can be used only in drawing offices and are items of capital equipment for industry, why should my hon. and learned Friend perpetuate what he was pleased last week to call "this damned nonsense"?

My hon. Friend's supplementary question rests on the false assumption that these articles can be used only for office equipment.

asked the Chancellor of the Exchequer why the totalisator at greyhound racing tracks has to pay a 10 per cent. tax whilst exactly the same totalisator at horse racing tracks, used for exactly the same purpose, is free from tax; when this system of discriminatory taxation was introduced and for what purpose; and whether he will change the present system in his forthcoming Budget.

This duty took this form because of differences in the conditions of betting on horse and dog racing. It was introduced in 1947 to raise revenue. As regards the last part of the Question, I cannot anticipate my right hon. Friend's Budget.

Can the Minister explain why it is that an ordinary working man from my constituency going to a greyhound race track and putting his 2s. on the tote has 10 per cent. tax deducted while a wealthier man going to a horse racecourse and putting exactly the same bet on the same totalisator loses nothing in tax? Why is there a tax on one and not on the other, and should not they both be treated alike?

This is not a question with which I can deal by way of answer to a supplementary question, but if the hon. Member will look at the Budget statement of his right hon. Friend in 1947 he will find a full discussion of the matter there.

asked the Chancellor of the Exchequer the figure of the current deficit of the rest of the sterling area with the United Kingdom in the last three financial years.

I regret that figures in terms of financial years are not available. The current deficits of the rest of the sterling area with the United Kingdom for the latest calender years for which estimates have been published are:

Would not my right hon. Friend agree that these figures show that, whatever the vicissitudes of the sterling area as a whole, the balance of payments of the United Kingdom as a unit has been extremely strong during all these years? As confidence abroad in the United Kingdom as the manager of sterling area currency is of vital importance, would it not be highly desirable to publish not only the sterling area figures monthly but the United Kingdom figures separately, so that people can see how well the United Kingdom is doing?

I will look into my hon. Friend's suggestion. We must in this country earn a large surplus in order to trade with the rest of the sterling area and to finance investment in the rest of the sterling area, which is so important.

asked the Chancellor of the Exchequer in view of the large sums now being paid by steel companies out of what would otherwise be taxable profits, for a campaign against steel renationalisation, if he will subject such expenditure to tax.

I would refer the hon. Member to my right hon. Friend's reply to the Question asked by the hon. Member for West Ham, North (Mr. Lewis) on Tuesday.

Is it not a fact that if the steel owners were not spending this money on propaganda it would be taxable and available to increase Government income, as the Inland Revenue originally held? Does the hon. and learned Gentleman hold that the decision over Messrs. Tate and Lyle applies to this very different situation and campaign?

No claim has yet been made to deduct any such sums from the profits returnable for tax. It is not for me to say how far the case of Morgan versus Tate and Lyle applies to these circumstances, but it does not necessarily apply.

asked the Chancellor of the Exchequer what would be the cost of total abolition of the cinema tax calculated on the present basis of attendance at cinemas.

I cannot give an estimate of the cost of abolishing the Entertainments Duty on cinemas in advance of my right hon. Friend's Budget statement.

Is the hon. and learned Gentleman aware that the President of the Board of Trade, in a written reply to me earlier this week, said that the Government expected that cinema attendances would be down by 18 per cent. for 1957? Would that not then represent a fall in taxation yield of about £5 million and therefore represent a recruitment to the Exchequer of £25 million? Can the Chancellor do proportion, and is my proportion correct?

The matter is not quite as simple as that, because the fall in admissions has been partly offset by an increase in seat prices.

asked the Chancellor of the Exchequer if he will consider removing the upper limit on fluctuations in the sterling-dollar exchange rate.

I have nothing to add to previous statements of Government policy on this subject.

Would not my right hon. Friend agree that the short-term advantages of removing the ceiling are clearly established while the long-term advantages are evenly balanced? That being so, would he not agree that it is time that a little fresh wind blew through the Treasury in these matters?

I do not think the Treasury, any more than any Government Department, is entirely free of draughts. The last Government statement on this matter was to the effect that we intend to maintain the existing exchange rate parity at 2·80 dollars to the £, and the Government do not intend to allow the margin to widen. I cannot add anything to that statement.

asked the Chancellor of the Exchequer what proposal has been put to him to the effect that the continued and increasing subsidy to the Arts Council for supporting opera and ballet in London in two widely separated and unsatisfactory buildings should be discontinued and that London's needs would be more justifiably and less extravagantly achieved by disposing of the existing obsolete buildings with their valuable sites and constructing instead one building containing both an opera house and a smaller theatre.

No such proposal has been put to my right hon. Friend.

Would not my hon. and learned Friend regard this suggestion as a serious one towards a very necessary improvement, particularly for opera?

I do not dissent at all about the seriousness of the suggestion, but it is not for my right hon. Friend to determine how the money which he gives to the Arts Council is distributed. That is a matter for the Arts Council itself.

asked the Chancellor of the Exchequer how many working wives pay Surtax on the whole of their income; and how much it would cost to abolish aggregation of income for Surtax purposes.

About 85,000 taking the wife's earned income as the top slice of the joint income. The cost of abolishing aggregation would be nearly £5 million in a full year on the assumption that the separation applied only to earned income.

Would not the Chancellor of the Exchequer enjoy the undying devotion of 85,000 women and their husbands by removing this unfair incidence of Income Tax?

I certainly cannot anticipate my right hon. Friend's Budget statement, but for all I know he already enjoys the undying devotion of 85,000 women.

asked the Chancellor of the Exchequer how much Income Tax would have to be paid by two unmarried doctors living together with a gross joint income of £4,000; and how much would be payable by two married doctors, presuming the expenses to be identical.

Assuming that the income is all earned and that there are no dependants, the Income Tax and Surtax payable would be between £1,083 and £1,490 in the case of two single persons, and between £1,310 and £1,430 in the case of a married couple, depending on the amount earned by each person.

Do not these figures indicate that there is again an unfair incidence of taxation and Surtax? Would it not be very fitting if the right hon. bachelor the Chancellor of the Exchequer could go down to history as the Chancellor who removed the tax on marriage?

The odd thing is that people continue to get married in spite of every discouragement.

asked the Chancellor of the Exchequer whether he is aware of the discrimination against the hotel and restaurant industry in the present law which excludes them from the benefits of Section 271 of the Income Tax Act, 1952; and whether he will introduce legislation to remove this disability.

Hotels and restaurants are treated in the same way as other commercial buildings. As regards the second part of the Question, my hon. Friend will understand that I cannot anticipate my right hon. Friend's Budget statement.

Would not my hon. and learned Friend suggest to his right hon. Friend that before making his Budget statement he should bear in mind that the catering and hotel industry is now in a position greatly to increase earnings of foreign currency which are so valuable to this country, and that he should do what he can to make it possible for them to do this?

Yes, my right hon. Friend will take that matter into consideration with all other relevant matters in his general review of taxation.

asked the Chancellor of the Exchequer what arrangements have now been made with the Federal German Government or by the North Atlantic Treaty Organisation for meeting the support costs of the British forces in Germany.

This matter is still under consideration by the North Atlantic Treaty Organisation and I have as yet nothing to add to my right hon. Friend's reply on 4th February.

In view of the fact that the Chancellor of the Exchequer in the Defence Estimates is taking credit for the receipt of £47 million, will appropriate savings be made in case the money is not forthcoming from the Federal German Government?

It would be very unwise at the moment to assume that we shall not find a satisfactory solution to this problem.

asked the Chanceller of the Exchequer what loans were made to West Germany by the United Kingdom Government in the early post-war years; and how far these loans have been repaid by the West German Government.

Loans were made to West Germany by Her Majesty's Government in the early post-war years in kind by way of economic assistance. The value of this assistance was £201·8 million. It was agreed in 1953 that the Federal Government should repay £150 million of this sum over 20 years in full and final settlement. So far £37·5 million has been repaid. In addition, a deposit of £75 million was made in 1957 by the German Central Bank with the Bank of England from which future repayments could be made.

Does that mean that there is still a considerable outstanding balance owed to this country by West Germany?

Yes, Sir. The outstanding balance would be £112½ million.

asked the Chancellor of the Exchequer when he expects to give an answer to the staff side on their representations through the official side on the deteriorating position of public and local government servants covered by the Pensions (Increases) Act.

Shortly.

Is my hon. and learned Friend aware that in the staff letter to the official side there is reference to a pledge given by the Prime Minister at Brighton? If the staff side—and a lot of other people—think there was a pledge to the people on small fixed incomes, would he be so kind as to instruct the official side to redeem the Prime Minister's pledge?

I have seen the letter written by the staff side, but I do not think that it would be appropriate for me to comment on it, pending the outcome of negotiations.

asked the Chancellor of the Exchequer how many people he estimates would be affected by restoring the 1955–56 bands of Income Tax payments with a ceiling of £600 gross income per annum; and what would be the cost.

Counting the joint income of husband and wife as one, about 8 million taxpayers have incomes under £600 and it would cost nearly £40 million to restore the lowest reduced rate band of £100 to them.

Would my hon. and learned Friend bear in mind that it was considered, at the time the operation was made, in 1956, that those in the lower income groups got a worse deal out of that Budget, and that it was regarded as a particularly unfortunate cut for people in the lower income groups? As my hon. and learned Friend is anxious to help these people, will he see what he can do to make conditions better?

There was no cut at all. All taxpayers benefited by the remissions of taxation given by my right hon. Friend the Member for Monmouth (Mr. P. Thorneycroft).

asked the Chancellor of the Exchequer to what extent Her Majesty's Government's offer of free trade between the United Kingdom and Canada is to be made to other Commonwealth countries.

Her Majesty' Government are always prepared to discuss such proposals with other Commonwealth Governments.

Would my right right hon. Friend agree that as things are it would be very difficult to achieve free trade between various Commonwealth countries? Having regard to what the Prime Minister said yesterday about the unique importance of the Commonwealth as a world force. will Her Majesty's Government in the United Kingdom use the coming Commonwealth Trade and Economic Conference and all possible opportunities to replace the largely obsolete Ottawa system by a modern, up-to-date system of Commonwealth preference and development?

We certainly hope at the forthcoming Commonwealth Conference to work out with our colleagues ways and means of extending inter-Commonwealth trade, but I think it would be unwise at this stage to particularise any one method.

asked the Secretary to the Treasury why only four Customs officials were available for 1,300 passengers returning from the Continent on the train which reached Victoria Station at 14.30 hours on 12th January. 1958.

Two trains arrived at about that time carrying 1,048 passengers all of whom, with their baggage, had already been cleared through the Customs at Folkestone. There were six Customs officers on duty at Victoria, but they were concerned only with unaccompanied baggage which some passengers had registered through to Victoria.

Is my hon. and learned Friend aware that it is quite a common practice to register baggage through and that, according to my information, the last groups of these travellers spent more than an hour and a quarter before passing through the Customs? Could not better arrangements be made, because this has a very unfortunate effect on foreign visitors?

The information I have been given is that nearly all the baggage was cleared through the Customs within half an hour of its being unloaded from the train. I entirely agree with the implication of my hon. Friend's supplementary question, but, of course, the amount of Customs facilities which can be deployed at any one point must depend on such factors as the cost of making the officers available. It would be unjustifiable to have more than are required to cope with the anticipated baggage.

Is the hon. and learned Gentleman aware that Customs are barbarous institutions which ought to be abolished?