TRUSTS BILL. (Hansard, 24 April 1923)

§ Captain WEDGWOOD BENN

I beg to move, That leave be given to introduce a Bill to deal with rings and trusts, with special reference to the building industry. As Members of the House are anxious to hear the statement of the Minister of Health on the new Housing Bill, I shall refer as briefly as possible to the Motion. To-day the Government is to announce that large public subsidies are to be given 287 for the building of houses, and it is not to be disputed that an assured demand for this class of material must tend to stiffen prices and to assist combinations, rings and trusts and other bodies which supply those materials. Therefore, it appears to me to be a very opportune moment to suggest machinery of the kind which is outlined in the Bill which I ask leave to introduce. Indeed, the Minister may find that it is necessary to adopt some such machinery. The proposal is divided into two parts. The first part lays upon the Board of Trade the duty of making inquiries into the existence, the influence and the growth of rings and trusts, and of making reports to the House on the subject. Where it appears to the Board of Trade, either from their own inquiries or from complaints made to them, that a prima facie case exists, they are empowered to refer such case to a special tribunal, which the President of the Board of Trade is to set up, having as its Chairman a person of legal qualification, and having among its members representatives of trade and industry, trade unions and co-operative organisations. Such a tribunal must report publicly and immediately to the President of the Board of Trade, and, upon such report being made, it shall be the duty of the President of the Board of Trade to suggest to this House legislation of a corrective or of a penal kind.

The second part of the proposal says that where the tribunal so recommend, it shall be the duty of the Overseas Trade Department to obtain and supply all available information as to alternative sources from abroad of the material which is being made the subject of a ring or trust or combination. The third part of the proposal says that on the recommendation of this tribunal the President of the Board of Trade may move a Resolution suspending for a specified period the duration of any embargo or restriction or control, or tariff or duty, which appears to hamper free access to alternative supplies of material, and if such a Resolution is passed by both Houses, it shall have the force of law for the specified period. The proposal, in brief, is to mobilise against the ring and trust two formidable antagonists—first, by inquiry and report, to focus public attention on the matter, and, secondly, by freeing the access to alternative 288 sources of supply and bringing in the most formidable antagonist of trusts, namely, competition. It is in the belief that if the Government pursue, as I hope they intend to pursue, a vigorous programme of building houses they may need the assistance of these two allies, that I move the Motion.