HC Deb 27 April 1936 vol 311 cc557-8
56. Mr. ARTHUR GREENWOOD

asked the Chancellor of the Exchequer whether he has made, or proposes to make, inquiry as to the source of the leakage of Budget secrets?

The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)

Yes, Sir. As soon as I heard that it was being alleged that some leakage of Budget secrets, followed by unusually heavy transactions at Lloyds, had taken place, I caused inquiry to be made as to the facts. I have personally interviewed the Chairman of Lloyds who has informed me that he is making careful and thorough inquiry into all the circumstances which have given rise to these allegations. His information is not yet complete, but I have informed him that I desire to have the whole matter sifted to the bottom, and he has undertaken to report to me as soon as his inquiries are completed.

Mr. GREENWOOD

I am sure that the House is grateful to the right hon. Gen- tleman. May I put this further point to him? The leakage, in so far as it was used by Lloyds, was a leakage which went to Lloyds and did not arise at Lloyds. Surely the right hon. Gentleman has a responsibility outside Lloyds, and I would like to ask him whether he intends to make an inquiry of his own with regard to the possibility of the information reaching people who speculate at Lloyds?

Mr. CHAMBERLAIN

I think that obviously the quickest way of getting to the bottom of this affair is to allow Lloyds to make the inquiries which they are now making. If they prove unsatisfactory, I shall have to consider what further steps I shall take.

Mr. GREENWOOD

May I put this further point? In the case of the Tea Duty and the Income Tax we are dealing with Lloyds, but if it were true that the leakage was such as to affect the prospective duty on lager beer, which would not have affected Lloyds in the ordinary way, would not that have caused the right hon. Gentleman to make an inquiry apart from Lloyds?

Mr. CHAMBERLAIN

As a matter of fact, it did not.

Mr. ATTLEE

To what is the inquiry through Lloyds being directed? Is it to find out the source of the leakage? May I ask whether there is not a case here for setting up a Select Committee to inquire into the whole question of how this leakage arose?

Mr. CHAMBERLAIN

I would point out to the right hon. Gentleman that no leakage has yet been proved, and I think that it is too early to assume that a leakage has taken place. The inquiries that are being conducted are to find out whether there is sufficient evidence to justify the assumption that there was a leakage and, if so, to find out from what source the leakage came.