§ 49. Lieut.Commander Gurney Braithwaiteasked the Chancellor of the Exchequer whether he has now completed 865 his inquiry into the alleged Budget leakage.
§ Mr. DaltonYes, Sir. In view of these allegations, the Chairman of the Stock Exchange, at my request, set up a Committee of Inquiry, which reported unanimously that there is no evidence that purchases of shares were made by any person on the strength of prior knowledge of the contents of the Budget. This conclusion is supported by the information which I have received from the Government Departments concerned. I should like to thank the Chairman of the Stock Exchange' and his colleagues for their co-operation in this matter. In the light of their report, I have decided that there is no case for any further formal investigation.
As regards the increase in the Tobacco Duty, arrangements were made, in accordance with long standing practice, for retailers to have notice of the change soon after 5 p.m. on the evening of Budget Day, that is to say, two hours after the Stock Exchange had closed. Since I did not announce this increase until nearly the end of my Budget Speech, some retailers knew of the increase before the announcement in this House could have reached them, but they were not thereby enabled to make any improper use of this information.
§ Lieut.-Commander BraithwaiteMay I ask the right hon. Gentleman two supplementary questions arising out of the result of his full inquiry, which he was good enough to make at my request, and which I am sure will allay the disquiet which undoubtedly existed at the time? First, did the inquiry cover share dealings on the provincial stock exchanges which are not under the jurisdiction of London? Secondly, did he follow up the evidence, backed by the names and addresses of credible witnesses, which I supplied to him through the learned Solicitor-General, which appeared to indicate an official indiscretion which disclosed the repeal of the Artificial Silk Duty one week prior to the Budget Statement?
§ Mr. DaltonSir, I have been anxious that this matter should be fully probed, in view of the statements which were made in the House. The report of the Stock Exchange Committee is quite comprehensive. In reply to the first supplementary question, the conclusion is, as I 866 have already stated, that there is no evidence that purchases of shares were made by any person—I emphasise, by anybody—on the strength of prior knowledge.
With regard to the second matter, it appears that there was—how shall I say?—some gossip which may arise at any time as to why certain persons were being moved from one post to another in the country. But I am satisfied on the report of the Chairman of the Stock Exchange Committee, and from many inquiries through the Customs and Excise Department, that it could have been no more than gossip—gossip which may very well have founded itself upon the very frank statement which I made last year in the course of the Debates in this House, that I was very anxious to see the repeal of the excise on artificial silk. Indeed, I went perhaps rather further than it is usual for Chancellors of the Exchequer to go, in saying that I should be disappointed if it was not possible for it to be repealed this year. This was a very flat statement, made quite sincerely, in response to pressure which I was sorry then to have to resist; and it is not at all surprising that this point should have been picked up and passed about in the course of conversation But, Sir, having said this much I hope that the hon. and gallant Gentleman will now see proper to withdraw the statement he made on 17th April:
There has been undoubtedly a Budget leakage."— [OF FICTAL REPORT, I 7th April, 1947; Vol. 436, c. 428.]In my view, the inquiries that have taken place have shown that there was no Budget leakage. In view of that, and in view of the hon. and gallant Gentleman's acceptance, as I understand it, of the report of the Chairman of the Stock Exchange Committee, I hope the hon. and gallant Gentleman will now see it right to withdraw this rather flat-footed statement, which he made prior to the inquiry?
§ Lieut.-Commander BraithwaiteI do not know whether I can put this in an interrogatory form, when I am asked to make a withdrawal. In view of the full inquiry which the right hon. Gentleman has made, is he aware that I am satisfied that no improper conduct took place?
§ Air-Commodore HarveyIf the right hon. Gentleman is in office next year, will 867 he try to time his speech so that this House gets the information before outside sources?