HC Deb 28 July 1926 vol 198 cc2271-3
The CHAIRMAN

An Amendment to this Clause has been submitted, but it have the effect of increasing the charge on the people of the Isle of Man, and therefore it is not in order.

Mr. CAINE

May I suggest that the charge has already been imposed through the resolutions having been passed through this House in connection with the Finance Bill? May I suggest this further point—that the Act of 1765, the reinvesting Act, under which the British Crown bought from the Atholl family the sovereign rights and the Customs revenue of the Isle of Man, gave the Crown and the British Parliament the right to impose Customs duties on the Isle of Man. I put it to you, Sir, that the constitutional authority on this subject is the Speaker of the Old House of Keys, who said most definitely, and all practice in the Isle of Man has proved it, that all financial resolutions of this kind—Customs duties—are brought in by the Lieut.-Governor of the Isle of Man, who is directly representing the Crown. He having brought them in, the position is that the Isle of Man can abolish, vary or impose them, but only for a limited time, for six months, and then the action has to be ratified by this House or be turned down by a Treasury minute. All I am suggesting is that the House should do what it has a perfect right to do, that is, impose a Customs duty; otherwise, I suggest to you that confusion will become worse confounded if duties are to be imposed by this House, and varied from time to time in the Isle of Man.

The CHAIRMAN

I am not quite sure whether the Amendment would have the effect the hon. Member wishes it to have. But assuming that that were so, I understand the hon. Member wished that any tax passed by this House and imposing a charge should automatically apply to the Isle of Man. The answer is that the Resolutions authorising that charge in the Finance Bill of this year or the former year do not extend to the Isle of Man. Had they done so, there would be no necessity for this particular Clause.

Mr. CAINE

The Act of 1877, called the Isle of Man (Customs) Act, makes it unnecessary for the Finance Bill to contain any such Clause, because that Act enables the Imperial Government to impose duties, and it distinctly states in the Act that it only gives power to vary those duties for a limited period. Therefore, I submit that my Amendment is in order, because I wish to urge the Government to impose this duty.

The CHAIRMAN

We cannot get over the fact that a charge cannot be imposed in that way. I will not say that repeal of the Act of 1887 would also be necessary, but no such duty can be extended by an Amendment varying this Clause.

Captain BENN

On what Money Resolution is the Isle of Man (Customs) Act based?

The CHAIRMAN

We have passed no such Resolution.

Captain BENN

Clause 13 apparently deals with a permanent duty, and I submit that it must be based upon a Financial Resolution passed in Committee of Ways and Means.

The CHAIRMAN

That is beside the question. The Resolutions have been passed by the Tynwald, and if they had not, a Court could presumably set any proceedings taken under Resolutions of this House aside. With regard to the, point of Order on the Amendment, it is quite clear that there has been no recom- mendation of the Crown and no Resolution of this House to justify what is proposed.

Mr. REMER

Shall we be allowed to have a general debate on the Question, "That the Clause stand part of the Bill."

The CHAIRMAN

Certainly not.

Mr. HARRIS

The Financial Secretary to the Treasury waxed very indignant at me because I venture to criticise this Clause, but it is quite clear that the Isle of Man has no choice and cannot initiate new taxes. It seems to me that whatever the political complexion of the Government may be—

The CHAIRMAN

That question is more appropriate on the Third Reading and it is not in order on this Clause.

Mr. HARRIS

Nobody can deny that this tax is imposed for political purposes—

The CHAIRMAN

We cannot go into the motives of the Tynwald when it passes these duties.

Captain BENN

I am not quite certain that this House has the power to impose Customs duties on the Isle of Man.

The CHAIRMAN

That is not the point on the Clause. The Tynwald has passed a resolution safeguarding key industries. Whether they have done it in their wisdom or not is not for us to say. The only question is whether, in what has been done, there is any reason why we should override them.

Mr. HARRIS

The point is that they have not justified it, and it is grotesque to make it anything else.

Captain BENN

It provides a definite sort of case, and it is a serious case against this Bill. Apparently the Tynwald has power to continue these duties for ever. You are going to have scientific instruments in the colleges and drugs in the hospitals in the Isle of Man made dearer.

The CHAIRMAN

The Tynwald has passed this, and the hon. and gallant Member would only be in order in giving good reason why this House should override the constitutional decision of the Tynwald.