HC Deb 18 December 1906 vol 167 cc1270-2
MR. MARKHAM (Nottinghamshire, Mansfield)

I beg to ask Mr. Chancellor of the Exchequer whether he has sufficient information to form an opinion if mining royalties and way leaves are fit subjects for taxation, and the annual income derived by the owners there from; whether, seeing these owners contribute nothing towards local taxation, and only pay income-tax on minerals actually wrought, and nothing on the capital value of unworked minerals, and that some royalty owners refuse, owing to increasing value, to work or let their minerals, he will consider the desirability of taxing this unearned wealth.

MR. HAROLD COX (Preston)

asked whether the right hon. Gentleman's attention had been called to the Report of the Royal Commission, signed by the hon. Member for Rhondda and the right hon. Gentleman the Member for Morpeth, in which it was stated that such a system of royalties had not interfered with the general development of the mineral resources of the United Kingdom.

THE CHANCELLOR OF THE EXCHEQUER (Mr. ASQUITH, Fifeshire, E.)

Yes, Sir, I am familiar with that Report. In my opinion all the necessary information for forming an opinion on this matter is available. I cannot at present make any statement as to the future, except that suggestions for new sources of revenue are always welcome to a Chancellor of the Exchequer.

MR. MARKHAM

I beg to ask the Prime Minister whether, seeing the burden placed on the coal, iron, steel, and allied trades due to way leaves and royalties, he will, in view of the millions of persons dependent on these trades, consider the desirability of appointing a Royal Commission to report on the effect of these burdens on trade in relation to wages and foreign competition, and what taxation could be derived from these sources, seeing that no taxation is paid by mineral owners for unworked minerals, either for imperial or local purposes, though their value is continually increasing.

THE PRIME MINISTER AND FIRST LORD OF THE TREASURY (Sir H. CAMPBELL-BANNERMAN, Stirling Burghs)

As my hon. friend may be aware, a very exhaustive inquiry was recently made into the economic operation of the royalty system. The Royal Commission which undertook the inquiry reported in 1893, and, in view of the mass of information collected by it, I doubt if it is necessary or advisable to institute another inquiry.

*MR. O'GRADY (Leeds, E.)

Is the right hon. Gentleman aware that the Commission of 1893 reported that in royalties and way leaves no less than £4,000,000 annually of blackmail was levied on the coal industry alone of this country?

MR. MARKHAM

And is the right hon. Gentleman aware that this Report does not deal with way leaves?

SIR H. CAMPBELL-BANNERMAN

said he believed the Chancellor of the Exchequer considered that he had all the information that he desired on this subject.

MR. KEIR HARDIE (Merthyr Tydvil)

asked the right hon. Gentleman whether he was aware that, according to an ancient law of Scotland, these mineral royalties were the property of the State, and whether he would take steps to have that law enforced.

SIR H. CAMPBELL-BANNERMAN

I have no doubt that if it is an old Scots law it is probably a very good law.