§ 51 Mr. OUTHWAITEasked the Prime Minister (1) whether, in return for the preference to be accorded to Dominion products, the representativs of the Overseas Dominions undertook to lower the protective duties imposed for the purpose of excluding British goods, or so enhancing their price as to enable them to be undersold by local manufacturers, as particularly in the case of woollen goods imported into Australia; (2) whether he can state the products of Australia which will come under the preference on existing duties which the Government has decided to establish; (3) whether he can state the existing duties which furnish the opportunity for the grant of a preference to the products of the, Dominions; (4) whether it is contemplated that the preference which the Government has 613 decided to grant to the products of the Dominions by way of preference on existing duties will enable the wine growers of Australia to supplant the French wines imported into this country?
§ Mr. BONAR LAWI can add nothing on this subject to the answer given to the hon. Member for Northampton on Monday.
§ Mr. OUTHWAITEIn view of the fact that it is announced that a complete change in the fiscal policy of this country is contemplated, when is the right hon. Gentleman going to state how it will be carried out?
§ Mr. BONAR LAWMy announcement is quite plain—that this Government has adopted the principle of Preference, and nothing more.
Mr. CHANCELLORIs Sir Robert Borden's statement true that this matter has not been adopted at the request of any of the Dominion Premiers?
§ Mr. BONAR LAWThe right hon. Gentleman (Mr. Runciman) has given me private notice of a question. Perhaps the hon. Member will wait for the answer.
§ Mr. OUTHWAITEHas the policy of Preference been adopted in conjunction with the Dominion Government, and is any countervailing advantage to be got from them?
§ Mr. BONAR LAWI do not quite follow the question. At almost every Imperial Conference, including that of last year, a Resolution in favour of it was adopted.
§ Mr. OUTHWAITEHas the right hon. Gentleman suggested to the Dominion Governments that they shall reduce their Protective tariffs in return?
§ Mr. BONAR LAWNo; it is not a question of reducing tariffs, but of Preference.
§ 62. Mr. OUTHWAITEasked the Chancellor of the Exchequer whether he has taken into consideration the enhanced difficulty that the French Government will be faced with in the matter of fulfilling its financial obligations to this country when a policy of Preference to Dominion products has achieved its object of excluding imports of French wines, spirits, and other competing products; and will he bear this factor in mind in connection with the matter of the grant of further loans to the French Government?
§ Mr. BONAR LAWThe Government has no such object as that stated in the first part of the question. The second part does not therefore arise.
§ Mr. OUTHWAITEIf there is a grant of Preference to Colonial products, does it not necessarily follow that certain foreign products, including French products, will be excluded, and therefore the question arises?
§ Mr. BONAR LAWThat is a matter for argument.
§ Mr. OUTHWAITEWill the right hon. Gentleman say what is the advantage of Preference if it does not exclude foreign goods for the benefit of the Colonies?
§ Mr. BONAR LAWThat also requires more than an answer to a question to explain.
Mr. RUNCIMAN (by Private Notice)asked the Chancellor of the Exchequer whether he has seen the statement in a speech made by Sir Robert Borden, the Prime Minister of Canada, yesterday, and reported in this morning's newspapers to the effect that it should be clearly understood that neither the Imperial War Cabinet nor the Imperial War Conference has had under consideration this year the question of Preference…Moreover, the people of Canada would not desire the people of the United Kingdom to shape or modify their fiscal policy for the sole purpose of giving a preference to the products of Canada, especially if such change should involve any supposed injustice or should be regarded as unfair or oppressive by a considerable portion of the people of the United Kingdom; whether the Chancellor of the Exchequer will correct the impression given to the House in reply to questions a week ago that the subject of Imperial Preference was being discussed at the Imperial Conference and the Imperial War Cabinet; and whether he will proceed with his undertaking given on Monday to publish what was apparently to be an Imperial Conference resolution and the discussions on the subject?
§ Mr. BONAR LAWThere is nothing in the least inconsistent in the speech of Sir Robert Borden with the statement made by me. The question of the special fiscal policy to be adopted either by the United Kingdom or by the Dominions must be settled by each independently, and what I said was that the British Government had 615 put itself in line with the Dominions by deciding to give preference on any duties now existing or to be subsequently imposed. A resolution accepting the principle of Preference was adopted by the Imperial Conference last year, and though this subject was not specially discussed again this year, there was much discussion at the Imperial Conference of the general economic policy of the Empire.
Mr. HARRISIs the right hon. Gentleman aware that the majority of the House of Commons was elected to oppose Imperial Preference—[HON. MEMBERS: "No!"]—and are we to believe that the War Cabinet for war purposes used their position in order to lay down a policy which was rejected by the electors?
§ Mr. BONAR LAWI think that there must be room for difference of opinion as to the majority of this House. In any case, certainly this Government, like any other Government, has the right to make its own decisions either on that or on any other subject.
§ Mr. LEES-SMITHIs not the point that Sir Robert Borden's statement shows that Imperial Preference has been adopted by the Government not in response to the request of the Dominions, but as an excuse for the establishment of Protection?
§ Mr. BONAR LAWThat is really an illusion. The general principle of Preference was adopted by every Imperial Conference that ever sat, including that of last year.
§ Mr. OUTHWAITEIn view of the statement that this matter was not discussed at the War Cabinet, who has decided on this policy?
§ Mr. BONAR LAWThe hon. Member has apparently not read Sir Robert Borden's speech. What he said was that it was not discussed at the Imperial War Conference. My answer, and I am sorry that the hon. Gentleman has misunderstood me, was meant merely to be a declaration of the policy of this Government.
Sir F. HALLDoes not the right hon. Gentleman think that the action of the enemy Powers since the outbreak of the War has been one more proof of the great necessity of an alteration of our fiscal system?