asked the President of the Board of Trade whether he is now in a position to make a statement concerning the progress made by the British Standards Institution on a national approvals scheme being made in conjunction with the electrical industry.

Discussions within the industry are still continuing. I hope that the British Standards Institution will soon be able to report some progress.

Is the right hon. Gentleman aware that many of us share that hope? Does he appreciate, as I think he does, that these discussions have gone on since October, 1957? Is it his hope that they will be determined within a month or so?

I hope so. I inquired and there seem to be genuinely difficult technical problems. All I can hope is that they are resolved within a short time.

asked the President of the Board of Trade if he will take steps to provide credit facilities extending over a greater period than five years for foreign firms and institutions purchasing capital goods from the United Kingdom, having regard to the increasing competitive disadvantage that British exporters of capital goods are suffering in this respect.

British exporters of capital goods are not generally under any disadvantage in this respect. If the hon. Member has any particular case in mind, I should be glad if he would let me have the details.

Is the right hon. Gentleman aware that in the countries of many of our principal competitors there are specialised institutions for giving longterm credit to such organisations, thus giving them a competitive advantage?

So there is in this country— Section 3 of the Export Guarantees Act, 1957

asked the President of the Board of Trade the respective percentage increases in labour productivity in the United Kingdom jute manufacturing industry during 1958, and in the United Kingdom manufacturing industry generally.

I have noted the recent statement made by the retiring Chairman of the British Jute Trades Federal Council that since the war output per head for the jute industry has risen more than in the United Kingdom manufacturing industry as a whole. While I cannot confirm this statement such information as I have supports it.

In view of the way that the jute industry under successive Governments has responded to the national need for increased productivity, will not the President of the Board of Trade give it that reassurance about its future which it now needs?

At present, as the hon. Gentleman knows, the jute industry is doing quite well.

Is not this statement of the Chairman, supported by my right hon. Friend, a great tribute to the employers in the jute industry, who, to make it efficient, have invested more than £11 million worth of capital in the industry since the war?

I agree with my hon. Friend.

asked the President of the Board of Trade the estimated capital investment in the jute manufacturing industry in 1958.

Official figures of capital expenditure in the jute industry in 1958 are not yet available.

Is the President of the Board of Trade aware that the Chairman of the Jute Trades Federal Council has reported that £418,000 was invested in the jute industry last year—a remarkable figure considering the uncertainty created by the right hon. Gentleman—but that that investment is now declining? Will he remove the uncertainty in the jute industry, which is enjoying a temporary period of prosperity, and give that assurance for its long-term future which will allow the industry to carry out its long-term plans for expansion?

The hon. Gentleman knows that the difficulty about such an assurance is that we have to think about our relations with India.

asked the President of the Board of Trade when he expects to be able to announce the membership of the Committee appointed to consider the whole question of consumer protection.

As soon as possible, but it will take a little time to find the right people.

Does the right hon. Gentleman expect to be able to announce the Committee's terms of reference before announcing its membership? Flow much longer does he think it will take the legal experts to settle the legal points arising out of that?

Only a short time, think. A number of Government Departments are involved.

asked the President of the Board of Trade what steps the Government have taken in the last seven years to stimulate trade between the United Kingdom and Canada; and what success their efforts have achieved.

In the last seven years our exports to Canada have increased by nearly a half. The Government have given every support to private initiative in this market and to the Dollar Exports Council and will continue to do so.

While the results so fair as they are known are encouraging in that they show an increase in the overall figures and a decrease in the export gap between us, may I ask my right hon. Friend whether he agrees that it is true that much more remains to be done by the Canadians before a rather fairer balance is achieved?

We welcome any help the Canadian Government can give. As a matter of fact, last year's balance was better than we have had before, and I hope that the improvement will continue.

asked the President of the Board of Trade the amount of trade between Scotland and Canada during each of the last ten years, indicating the products dealt in, and the steps he is taking to develop and increase this trade.

The list of products, starting of course, with whisky, which Scotland sells to Canada, is too long for a Parliamentary Answer. I have no figures for Scottish exports as distinct from United Kingdom exports. Scottish exporters derive advantage from the export services of the Government.

Will the right hon. Gentleman be so kind as to send me a list, if it is too long to state now? Does he realise that I have asked this Question because representative Canadians, many of them Scots or of Scots descent, have publicly expressed their anxiety to increase trade with Scotland and because I want to know what reciprocal action he is taking to encourage them?

It is very good news that Canadian Scots want to buy Scottish goods. I will do my best to send the hon. and learned Gentleman a list.

asked the President of the Board of Trade whether he is aware that highly-skilled machine tool workers in Coventry are being laid off and in consequence are having to look for less skilled work; and what steps he is taking to avoid the breaking up of such skilled teams.

Out of 4,000 industrial operatives employed in the machine tool industry in Coventry, about 200 have been discharged since the beginning of the year. Twenty-two of these remained unemployed on 13th March, of whom 17 were semi-skilled and skilled. The restoration of investment allowances announced by my right hon. Friend, the Chancellor of the Exchequer, will be of particular benefit to the machine tool industry.

It is not a question of employment. Does the right hon. Gentleman realise that a month ago I attended a conference of the shop stewards of the Coventry Gauge Tool Company and that all the shop stewards are very worried about skilled workers having to take less skilled work, and about the dispersal of that skill?

Yes, the position needs to be watched, but we hope that the industry will now pick up.

Does my right hon. Friend realise that the Coventry Gauge Tool Company has factories in Angus as well as in Coventry, and that the same thing is happening in Angus as is apparently happening in Coventry?

Yes, Sir.

asked the President of the Board of Trade if he will make a statement on the nature and kind of Scottish products which will be on exhibition at the forthcoming Lisbon Trade Exhibition.

I am informed that among the Scottish products on display will be ships, marine engines, heating equipment, food machinery, agricultural machinery, pumps, contractors' plant, scientific instruments, textiles and clothing, sports goods, foodstuffs, furniture, glassware and linoleum.

I thank the right hon. Gentleman for that comprehensive reply. Has he been invited to play any part in the compilation of the catalogue with a view to ensuring that justice is done to United Kingdom products at this exhibition?

The F.B.I. is looking after that and I have every reason to think that it can do so very efficiently.

asked the President of the Board of Trade if he is aware of the extensive expont trade between Scotland and the East, West and Centre of Africa, particularly in fish; and what steps he is taking to protect and increase that trade.

As I have often explained to the hon. and learned Member, the services of our Trade Commissioners are available at all times to Scottish exporters. Exports of fish and fish preparations to this area were about 10 per cent. larger in 1958 than in 1957.

Surprising as it may seem, there is already an extensive trade in fish products to these African countries, and my anxiety is to increase it. What is the right hon. Gentleman doing to increase it?

I agree that it is a good export, and when I was in South Africa the other day I saw some of the efforts that are being made.

asked the President of the Board of Trade whether he has now completed his consideration of the Report of the Bankruptcy Law Amendment Committee; and if he will make a statement.

I cannot add anything to the reply given on the 23rd March to a Question by my hon. and gallant Friend the Member for Croydon, North-East (Vice-Admiral Hughes Hallett). This Report is still under consideration and there is little prospect of early legislation.

In view of the fact that there appears to be a good deal of support for the Committee's recommendations and that it is the first comprehensive review of this important subject for nearly fifty years, can the President of the Board of Trade say when he thinks he may be in a position to make a statement?

I wish I could, but I am afraid I cannot.

asked the President of the Board of Trade if he is aware of the opposition of shopkeepers to the operation of Section 25 of the Restrictive Trade Practices Act, which provides for the individual enforcement by legal proceedings of resale price maintenance conditions; and what proposals he has for repealing the section.

Some shopkeepers wish for the repeal of Section 25, but most of the representations received from retailers are in favour of the enforcement of resale prices. The answer to the second part of the Question is " None, Sir."

Is the President of the Board of Trade aware that the effect of this Section is—exactly as was feared—to keep up prices, cut out competition and push up the cost of living? Will he now consider removing this restriction which his Government imposed and set the shopkeepers and the housewives free from these restrictions? Secondly, is he aware that there are indications that this restriction imposed by his Government is being used by price rings for collectively keeping up the price of their products?

I cannot accept the suggestions made by the hon. and learned Gentleman. If there are price rings, they will have to be registered.

asked the President of the Board of Trade if he is aware that, despite the termination of the registered restrictive trading agreement relating to cast iron pipes, 31st December, 1958, the Staffordshire Potteries Water Board continues to receive identical tenders for the supply of such pipes; and if he will therefore reconsider his previous decision and instruct the Registrar of Restrictive Trading Agreements to give this matter priority before the Restrictive Practices Court.

If it is believed that the agreement is still effective evidence should be sent to the Registrar, since it is his responsibility, and not that of the Board of Trade to deal with allegations that the agreement is in fact continuing or has been renewed.

Is the right hon. Gentleman aware that the Staffordshire Potteries Water Board followed his advice and, after the so-called termination of the agreement, asked for new tenders and once again received identical tenders from four firms? Does not this show that the termination of the agreement is merely a " phoney " one; and will he, therefore, give the instructions asked for in the Question that urgent priority should be given in order to stop this keeping up of prices against local authorities?

The Board has informed me of these identical tenders. I cannot say whether that price agreement is still in existence or not, but I have passed the information to the Registrar, who presumably will now deal with it.

Does not the right hon. Gentleman remember that when a similar Question was asked before he gave us information and advice along the lines which my hon. Friend has mentioned. Surely he does not believe that it is a mere coincidence that, on the second occasion, identical tenders are received; and, in the interests of a board like this, is it not wise that he should at least give some direction to the Registrar?

I am sorry, but the Act says that it is the Registrar's duty to pursue allegations that an agreement is still in force. We have drawn his attention to that, and no doubt this Question will do that, too.

Cannot the right hon. Gentleman at least say how the Registrar will be able to pursue it?

If he thinks that in fact there is evidence, he can apply to the High Court to have the persons brought before it.

asked the President of the Board of Trade how many licences he has already granted for the importation of oil from Russia; for what quantity; how many other applications have been made for licences; and what are his reasons for not granting them for a five-year period instead of annually.

Over the last five years no application has been refused outright; one has been modified; 25 have been granted for 526,000 tons of oil not all of which has been imported. In addition, 140.000 tons have come in under 41 open individual licences on issue to long-established oil importers. Oil is now in surplus supply and it is, therefore, necessary to deal with imports on an annual basis.

Is not my right hon. Friend aware that Russian oil is being offered at half the price of the Anglo-American counterpart and that many more firms would take it if they could be sure that they would have a five-years' supply, because the cost of converting from coal burning to oil burning is very considerable? Since the Russians have indicated that they would take part of the price in barter and therefore help our production in this country, would my right hon. Friend consider giving longer-term licences to those who wish to import?

I am not aware of the price differential which my hon. Friend has mentioned. This is a very difficult subject because, as a matter of fact, we have as much oil as and more than we want at the moment. I do not think that it would be wise to tie up our imports by giving a five-years' licence. That would be something quite exceptional.

asked the President of the Board of Trade if he will arrange for a number of practical businessmen who are directly interested in East-West trade to visit Moscow as part of the trade mission he proposes to send; and if he will make a statement on the arrangements so far made.

I will bear my hon. Friend's suggestion in mind, but I am not yet in a position to make any statement about the composition of the mission.

I am much obliged for my right hon. Friend's promise. We hope that when the mission goes it will create a favourable atmosphere between the two parties. If the businessmen are on the spot when the atmovhere is good, trade may result, and that is what we want.

I shall bear that point in mind.

When the right hon. Gentleman is considering the composition of the mission, will he give special attention to the necessity for Scottish businessmen being on it, because of the great need for extra trade in order to decrease Scottish unemployment?

I shall keep all those matters in mind.

asked the President of the Board of Trade whether he is aware that, under the trade agreement signed in Paris on 22nd December, 1958, between France and Poland, there is provision for the export to Poland of silicon to the value of 45,000,000 francs; and whether, in view of the Common Embargo List, published by his Department on 15th August last, which prohibits the export of silicon of a purity of 99.9 per cent. or more, he will give an assurance that the exports of British manufacturers are placed under no greater restrictions than any other member country of the Consultative Committee.

Yes, Sir. I understand that this agreement does not provide for French exports to Poland of any goods subject to the international embargo.

Is my right hon. Friend aware that many people are under the impression that other European countries are not adhering to the embargo list as strictly as we are, and that France is one of the more persistent offenders at present? Is my right hon. Friend's Department taking any action in the matter?

I have no such information. As far as I know, the French have always kept their bargain as well as we have.

asked the President of the Board of Trade why it is the policy of Her Majesty's Government to maintain the common embargo prohibition on the export to the Communist countries of oscilloscopes, cathode ray, and specialised parts thereof containing or designed for the use of one or more cathode ray tubes having three or more electron guns or three or more cathode ray tubes.

Because these instruments have applications for military research.

Is my right hon. Friend aware that that was not quite what I asked? How is it that one of these machines can go with only one or two cathode ray tubes, but that if the machine has three it goes on to the embargo list? If the machine has only one or two it is free. and any number of these can be sent and can be put together on the other side. Is not that absurd?

I am grateful to my hon. Friend for bringing this matter to my attention. It will enable us to tighten up the controls.

asked the President of the Board of Trade whether he has any further statement to make regarding efforts to set aside engineering and power plant contracts obtained by British firms in the United States of America.

No, Sir, but Her Majesty's Government have made clear to the United States Government their concern about this matter.

Can the President of the Board of Trade at least confirm that there is no danger of the Tennessee Valley Authority contract with Messrs. Parsons being set aside?

There is no danger, as far as I know.

Can the Minister at least assure us that until we get some satisfaction in this matter he will not make more trade concessions to the United States?

One cannot link dollar liberalisation with this subject.

asked the President of the Board of Trade whether he will make a further statement in respect of the inter-Governmental negotiations between Great Britain and France concerning trade relations.

As announced on 2nd April, agreement in principle has been reached on quotas with France for 1959.

Are the negotiations purely bilateral negotiations between this country and France, or do they arise out of the Common Market Agreement and the disagreement about the Free Trade Area? In the latter case, will these negotiations be continued with the non-Common Market Powers and, if so, will the Minister deal with the matter himself, or will his right hon. Friend the Paymaster-General do so?

The disagreement arises from the fact that on coming into force the Common Market discriminated against our goods. It has also discriminated against the goods of other members of O.E.E.C. who are not in the Common Market. We have kept them informed of what we have done, and they are now negotiating with the French. I hope that they will get the same treatment as we have got.

Is the House to take it that the negotiations were only with France and not with the Common Market Six, and that hopes of further negotiations with a view to widening the Free Trade Area, or coming to a Free Trade Area agreement of some sort, are now extinct?

The right hon. Gentleman will know that France had very stringent quotas, whereas her partners did not. Therefore, the negotiations had to be with France, because it was only in the French market—and, to a slight extent, in the Italian market—that that discrimination was going to take place.

Since it was the French, in the main, who frustrated the coming into being of the European Free Trade Area, does this development indicate in any way a softening of their attitude and a more agreeable approach to a Free Trade Area, or some such organisation?

It provides a transitional arrangement for this year, during which we can resume wider negotiations.

asked the President of the Board of Trade whether he will state, in respect of imports Class D Division 15 (Machinery other than electric) and Class D Division 16 (Electrical machinery, apparatus and appliances), respectively, the total value of imports into Great Britain in the year 1938 and in the year 1958 together, in respect of each of the two years, with a comparative analysis showing the principal countries from which such imports were acquired.

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

asked the President of the Board of Trade how many jobs were provided by new industrial buildings and extensions completed in the first quarter of 1959; and how many more jobs he expects to see provided in the near future.

No figures are yet available for industrial building completed in the first quarter of 1959; industrial building approved during the twelve months to 31st March, 1959, is expected to provide work for 71,770 people.

I thank my right hon. Friend for his most encouraging reply. Will he bear in mind the value of regular publication of such figures, showing as they do the success of the Government in this field?

Yes.

Is the Minister aware that the Bristol Commercial Vehicles organisation has vacated its premises in Bristol, and that those premises are now standing idle? Will the Minister see that these premises are used before building any others?

I did not know that, but I am glad to have that information, and I will do what I can about it.

Can my right hon. Friend give the figures for Scotland separately?

Yes, if my hon. Friend will put down a Question.

asked the President of the Board of Trade the percentage which Scotland obtained of the total amount of factory building approved in Great Britain during the periods 1949 to 1951 and 1956 to 1958, respectively.

Scotland's share of the total area of industrial building approved in Great Britain was 6.6 per cent. between 1949 and 1951 and 7.1 per cent. between 1956 and 1958.

Has the Minister at hand particulars of the Scottish share of the industrial building completed in the years referred to in the Question? It is the number of completed buildings which is really important.

The one follows the other, at a little distance of time.

Is not the right hon. Gentleman aware that during the six years of the Labour Government Scotland received over 12 per cent. of the industrial buildings completed, and that it was because of the large amount of factory building approved, and awaiting construction in 1949, that the new approvals were discontinued for the time being? This shows that the amount of factory building completed is important.

asked the President of the Board of Trade the percentage increase in the value of United Kingdom exports of motor cars to the United States of America between 1948 and 1958.

Car exports are about eleven times greater in 1958 compared with 1948.

asked the President of the Board of Trade to what proportionate extent United Kingdom trade with Poland has risen since 1951.

Imports have increased by 26 per cent. and total exports—including re-exports—by 56 per cent.

I welcome that increase in trade, but does not the Minister agree that there could be a further considerable increase in the sale of capital goods to that market? Poland is anxious to get increasing quantities not only of capital goods but of consumer goods. Does my right hon. Friend also agree that, although we must try to send as much as possible to Poland, we must be careful not to finance any increased trade by taking an undue quantity of bacon from Poland, thereby upsetting the position of our other suppliers?

My hon. Friend cannot have it both ways.

asked the President of the Board of Trade what steps Her Majesty's Government have taken in the last seven years to increase trade between the United Kingdom and India and what success these measures have achieved.

We have kept our market open to Indian goods and given India substantial financial aid. As a result our exports to India increased from £114 million in 1952 to £160 million last year.

Can my right hon. Friend say whether our trade with India follows the traditional pattern of the exchange of raw materials and consumer goods, or whether it tends more, today, to the supply of capital goods to India?

Indian import licensing is fairly strict on consumer goods. Capital goods form the largest proportion of our trade with India.

asked the President of the Board of Trade if he will include the areas covered by the Farnworth and Walkden Employment Exchanges in the list of areas where Government assistance under the Distribution of Industry (Industrial Finance) Act, 1958, is available.

I am glad to say that the rate of unemployment in Farnworth and Walkden is not such as to warrant our adding it to the D.A.T.A.C. list.

Does the President of the Board of Trade not agree that the proposed reorganisation scheme for the cotton industry plus the recent decision of the Restrictive Trade Practices Court are almost certain to result in an accelerated rate of closing of mills which are now partially operating? Will not this, as forecast by the Restrictive Trade Practices Court, result in a large increase in the wholly unemployed in these areas? Will the Minister consider the problem again, with a view to anticipating the inevitable changes, and scheduling the whole cotton belt?

The hon. Member is quite right in saying that certain changes have taken place in the cotton industry. We shall have to watch them. What happens to any labour displaced depends on the alternative employment in the district, and we have that fact very much in mind.

asked the President of the Board of Trade whether he has now considered the representations sent to him asking for Todmorden to be added to the list of areas to which the Distribution of Industry (Industrial Finance) Act applies; and with what result.

The rate of unemployment in Todmorden does not warrant its inclusion among the places eligible for financial assistance under the Act. But I will continue to keep the situation under review.

Will the right hon. Gentleman kindly inform the House what level of unemployment is necessary, and for how long it must last, before an area of this kind qualifies for assistance under the Act? Is he aware that the proportion of unemployment in Todmorden recently was over 8 per cent. and is now over 5 per cent.? How much higher must it go?

It is getting less.

The hon. Member may have got the figures wrong, because in March the number of unemployed in Todmorden averaged 1.7 per cent. and, including temporary stopped, the figure was 4.5 per cent. It is necessary to have evidence over a rather longer period as to the number of wholly unemployed if we are not to spread much too wide the aid which can be given under the Act.

Would not the President of the Board of Trade agree that the present criteria for scheduling under the Act make it difficult to discriminate between one area and another? Would it not be far better to schedule the whole of industrial Lancashire as a Development Area now?

Todmorden is in Yorkshire.

It is difficult, especially when we have a big city like Manchester, to know what to do with places which are within travelling distance of it. If we were to schedule the whole of a great county like Lancashire it would be awfully difficult to pick out the had places.

asked the President of the Board of Trade how many industrial development certificates have been issued since 30th September, 1958, in respect of the area represented by the hon. Member for Portsmouth, Langstone; and how many persons it is expected will find employment as a result.

Since 30th September, 1958, five industrial development certificates have been issued for the Langstone area, to give employment to 1,133 additional persons.

Does my right hon. Friend realise that, by any standard, that must be regarded as satisfactory progress in a reasonably short space of time? Will he say what proportion of the 1,133 will be male labour?

I am afraid I could not do so, without notice

asked the Chancellor of the Exchequer if he is now in a position to announce a favourable decision on the application by the Inch-green Investigating Company Limited for financial assistance in the construction of the proposed graving dock at Greenock.

I am afraid not

Is not the right hon. Gentleman aware that, since he made the announcement last year, unemployment in my constituency and on Clydeside has remained very formidable and is standing, no matter what the Minister of Labour does, at a very substantial 8 per cent.? Would not he agree that this is most unfortunate?

I agree with what the hon. Gentleman says. I would like to see a satisfactory outcome of the matter to which the Question refers. As the hon. Gentleman knows, these applications are made in confidence to the Development Areas Treasury Advisory Committee and so, beyond my Answer, I cannot say anything more to the hon. Gentleman today.

Is not this a matter of concern not only to my hon. Friend's constituency but to the whole of the Clyde Valley? Can the Chancellor say whether the delay is due to the committee or to the people who are promoting the scheme, so that the public may know whom we can ginger-up a bit?

I appreciate the point that this proposal is of wide interest. Limited, as I am, by what I have just said to the hon. Gentleman, I cannot say more than that I think the difficulty has arisen from the nature of the proposal in the application. I do not think there is any blame to be attached to either side.

asked the Chancellor of the Exchequer how much of the £1,970 million provided by the United Kingdom in loans and Government grants to Commonwealth and other countries was provided in the years 1945–51 and 1951–59, respectively.

The United Kingdom provided from Government funds loans and grants for Commonwealth countries of £150 million in the financial years 1945–51 and £520 million in the financial years 1951–59. £1,070 million and £230 million respectively were provided for non-Commonwealth countries in these periods.

asked the Chancellor of the Exchequer the cost in loss of revenue in a full year of exempting pottery from Purchase Tax.

About £3¼ million.

Does the Chancellor recall that this tax was reimposed on pottery six months after the General Election of 1955 and seven months after the electioneering Budget of that year, and that it has had a totally harmful effect? If he were concerned to help hard-hit industries, would not this obviously be a tax which should be removed altogether?

I understand that home sales of pottery last year were at the highest level for some years. I would also point out that in my proposals I have reduced the rate on pottery.

Would my right hon. Friend confirm that pottery and carpets have both benefited from the Chancellor's generous proposals in his Budget?

Yes, I assent with enthusiasm.

asked the Chancellor of the Exchequer if he will give an approximate estimate for any convenient period as to what proportion of the Purchase Tax reliefs of his 1958 Budget were passed on to the consumer.

The range of taxable goods and the number of traders handling them are both so great that no such estimate is possible. It must be left to competition to secure that the benefits from tax reductions, like other reductions in cost, reach the consumer in one way or another, as I have no doubt they do.

is the right hon. Gentleman aware that last year there was not a fall in prices following the reduction in Purchase Tax? Would he make it clear that reliefs arc intended to reduce costs to the consumer and not to increase profits to the producer?

I would not accept the hon. Gentleman's statement that, following the Purchase Tax reductions made in the Budget last year, reductions were not made in retail prices. My information is, in general, entirely to the contrary.

asked the Chancellor of the Exchequer if he will give the actual yield from Purchase Tax in the year 1957–58 and 1958–59, collected from those groups taxed at 5 per cent., and the estimated yield for the same groups for the year 1959–60.

In 1957–58, about £51 million; last year, about E531 million; and for the current year the estimate is £55 million.

Will the Chancellor explain why over a period when the economy is said to have improved and when he has been able to make reductions all round, this regressive tax on essentials has steadily increased?

The only reason for the increase was that there was an increase last year in this 5 per cent. category when I reduced the rate on certain items from, I think, 10 per cent. to 5 per cent.

Is not this a very funny way of running a Purchase Tax system —that when the Chancellor reduces the total Purchase Tax the parts dealing with essentials. which carry the lowest rates, are expected to yield more next year than last year? Secondly, will the Chancellor say why he has not taken out of this group those items put in by the Lord Privy Seal in the post-election Budget of 1955?

I should have thought, on the contrary, that the figures I have quoted show that this particular part of the tax is soundly based. The other part of the rise is due to the general rise in the standard of living and purchasing power of the people of this country.

asked the Chancellor of the Exchequer the additional annual cost to the Exchequer of amendment of Section 3 of the Vehicle Excise Act, 1949, so as to provide that the maximum duty chargeable on public service vehicles was the same as private cars. namely £12 10s., instead of the amended charges proposed in his Budget statement.

About £1 million more than my Budget proposal. If a refund were given on current licences, the total extra cost in 1959–60 would be about £1¾ million.

As the concession made cost £3½ million, would not this cost only an additional £1 million? Does not the right hon. Gentleman think it would be worth while to simplify the law in this respect, because there would be considerable economy in administrative costs if this system were introduced?

I do not think so. Perhaps there will be an opportunity of discussing this question later on the Finance Bill.

asked the Chancellor of the Exchequer the estimated annual cost of remission of duty on diesel fuel used in public service vehicles.

Twenty-six million pounds, but since relief from Hydrocarbon Oil Duty could not be limited to oil used for particular purposes, such remission would put in issue the entire duty, which is expected to yield £355 million this year.

Why does the Chancellor say that there could not be a discriminatory tax of this sort in view of the fact that in the Budget he has exempted certain vehicles from duty on the oil which they consume, vehicles which do not normally operate on the road but operate elsewhere, so that there is discrimination already? Further, as this remission would cost only £26 million and he has remitted £36 million of beer tax, does he not consider that to help rural transport services which are steadily deteriorating would be of greater benefit to the community?

There are two difficulties. First of all, there is the question here of discrimination between diesel oil and petrol and then the question of discrimination between passenger buses and other kinds of road haulage vehicles. Again, perhaps I may say, Mr. Speaker, that it is conceivable that we shall have an opportunity of discussing this question later.

asked the Chancellor of the Exchequer if he will take steps to reduce long-term interest rates, having regard to the circumstance that they have not fallen to an extent consistent with the decrease in Bank Rate.

There is no direct link between movements in Bank Rate and long-term interest rates. As I explained to the hon. Member on 2nd December last, the level and movements of longterm rates of interest, reflect fundamental conditions in the capital market.

Would the right hon. Gentleman at least avoid this year such heavy sales of Government securities by the Government as were such a feature last year and which caused long-term interest rates to be inordinately high?

I would remind the hon. Gentleman that I said in my Budget statement that the Government's financial policy during the forthcoming year would continue to be adjusted to the needs of the situation as it develops.

Is the Chancellor aware that high interest rates are severely restricting new council house building at the present time? Is it Government policy that new council house building should expand in the present year?

Again, I think my reply would be that our policy on interest rates in general must be related to the general position of the economy.

Is my right hon. Friend empowered to give a gentle hint to the building societies that they might consider a reduction in their rates in the near future?

I must look into the question of the general powers I have to give delicate hints in the way my hon. Friend suggests.

Would the right hon. Gentleman answer my simple question? Is it the wish and the policy of the Government that council house building should expand in the present year?

Yes. Steps have been taken in the present year, and council house building is expanding.

asked the Chancellor of the Exchequer whether he will appoint a committee to inquire into the comparative profitability of the nationalised electricity and gas industries, British European Airways, Cable and Wireless Limited, and the Post Office, and to make recommendations.

No, Sir.

Is the Chancellor aware that this Question was put to the Prime Minister because of the answer he gave on 5th March in which he said, quoting the Atomic Energy Authority:

"One can summarise these things as one likes This one can never pay. The others do not pay."—[OFFicIAL. REPORT, 5th March, 1959; Vol. 601, c. 622.]

Is the right hon. Gentleman aware that the industries mentioned in the Question are efficient and do pay? Will he inform the Prime Minister that, notwithstanding an approaching General Election, it is generally desirable to maintain standards of truth and accuracy in these matters?

The main reason for giving the Answer I have given is that I am not persuaded that such an inquiry as the hon. Member proposes would be useful owing to the different nature and responsibilities of the industries, but the financial results of some of these nationalised industries are, of course, subject to review by the Select Committee on Nationalised Industries.

Will my right hon. Friend agree that, as a general proposition, the profitability of nationalised industry is rather less than was forecast by the editors of a booklet called " Let us Face the Future," published in 1945?

Hon. Members opposite are facing backwards.

I think from memory that what my hon. Friend the Member for Barry (Mr. Gower) has said reflects the facts.

Can the Chancellor say if the Bank of England is making ends meet? If so, will he tell the Prime Minister?

have no quarrel with the operations of the Bank of England.

asked the Chancellor of the Exchequer (1) what would be the cost of extending the tax-free allowance in respect of cinema admissions from Is. 6d. to 2s. 6d., assuming the balance is divided as at present, namely, one-third to the Exchequer and two-thirds to the cinema; and

(2) the cost of extending the tax-free allowance of Is. 6d. to 3s. in respect of cinema admissions, assuming the balance is divided as at present, namely, one-third to the Exchequer and two-thirds to the cinema.

Five and a half million pounds a year for 2s. 6d. and £7¼ million a year for 3s. Od.

Does the Chancellor realise that if he accepted the suggestion of extending the tax-free allowance to 3s., 83 per cent. of the cinema admissions in this country would be free of tax altogether, which would still leave us very much behind America, where the number amounts to 95 per cent.? Does he realise that if he does not do something about cinemas a great many will be closed down by his lack of action in the Budget, whereas they might have been able to keep open if he had given them some relief?

I should point out to the hon. Member that I think the main reason for closures of cinemas is lack of public support and not this particular duty. I should not be surprised if this matter also arose during our discussions on the Finance Bill.

asked the Chancellor of the Exchequer if he will give an assurance that, in the investigations prior to the introduction of a new Pensions (Increase) Bill and a fresh Royal Warrant, the cases of retired nurses, midwives, officers and other ranks and retired colonial servants will also be added to the list already announced as covered by the investigation.

I envisaged increases of the pensions paid by Her Majesty's Government to nurses and midwives, to officers and other ranks, and to retired colonial civil servants. I am consulting the local authorities about increases on the pensions which they pay to nurses and midwives.

While thanking my right hon. Friend for that assurance, which will give very great pleasure, may I ask if he will bear in mind that a general percentage increase in pensions will not really meet the case in view of the fact that the older the pensioner the less the pension? When considering all these problems, will he try to see that those who are worst off get the maximum benefit?

I have much sympathy with what my hon. Friend has said and I promise to take careful note of her views, as I always do.

Can the Chancellor assure us that if any of these retired nurses and midwives are receiving National Assistance there will be no reduction in their National Assistance allowances to make up for any increased pension he is able to allow them?

I do not think I could give the hon. Lady that assurance. National Assistance paid will, of course, be computed according to the normal rules of the National Assistance Board.

asked the Chancellor of the Exchequer what steps are taken to preserve the confidential nature of Income Tax returns when they are disposed of.

Income Tax returns are normally disposed of with other Government waste paper of a confidential nature by pulping in paper mills, the pulping arrangements being subject to inspection by officials of the Stationery Office or the Post Office. The sacks containing the waste are sewn up securely and sealed before leaving the Tax Office.

In any area where satisfactory arrangements for pulping cannot be made, the returns are disposed of by burning or other means.

I am sure everybody will be delighted to have that reassurance, but can the Chancellor tell me how I came to pick up on the docks at Cardiff last week these Income Tax returns? I agree that they are old, but they relate to pottery firms in the Midlands and give full details of their income and correspondence between inspectors about all their affairs. Is the Chancellor aware that these returns, in company with others, are regularly shipped to the Continent for disposal, without any regulation? When a bale breaks open, as they often do, these things are left lying about on the docks for anyone to pick up and examine people's private affairs.

No; I admit I am rather concerned by what the hon. Gentleman has said. All I can say is that if he will give me the most complete information he can give, I shall look into it as a serious matter if what in fact he alleges is capable of taking place.

asked the Minister of Housing and Local Government and Minister for Welsh Affairs what action he has taken under the Clean Air Act, 1956, and earlier legislation to reduce atmospheric pollution from industrial undertakings situated on Tees-side and, particularly, in South Bank and Grangetown.

The alkali inspectors are working on the difficult technical problems presented by industrial processes brought under the Alkali Act last year. The local authorities are responsible for enforcing the Clean Air Act in respect of non-scheduled processes.

Is the hon. Gentleman aware that my constituents had great hopes of the clean air legislation passed earlier in this Parliament, but they are now beginning to wonder when something is to happen about it?

I am quite sure the hopes of the hon. Member's constituents will be fulfilled. The Alkali Inspectorate is following this matter carefully.