HC Deb 28 June 1951 vol 489 cc1729-43

The Treasury may by order direct that a rebate of 4½d. a gallon shall be allowed in respect of the duty on light hydrocarbon oils imposed under section two of the Finance Act, 1928 (as amended by subsequent enactments), in the case of any light oils used in any aircraft or used in connection with the construction or testing of any engine intended to be fitted in an aircraft or motor vehicle.—[Air Commodore Harvey.]

Brought up, and read the First time.

Air Commodore Harvey

I beg to move, "That the Clause be read a Second time."

On 5th June we had an Amendment on the Order Paper dealing with this matter. It was not called, but we did have a short debate on the Motion, "That the Clause stand part of the Bill," to which the Financial Secretary replied. His reply was not in great detail and it certainly was not a satisfactory answer. He said, in reply to two speeches made on this subject, that he had considered the case of civil aviation very carefully in relation to this tax, both last year and this year. I wonder how carefully the Financial Secretary really did consider this matter. I gained the impression that he had not gone into it in any real detail at all.

He pointed out that he had already given an increase in the grant to flying clubs where the need appeared to be particularly great. The need for flying clubs is no greater than that of private owners of aircraft. What is the difference between a man who flies with a flying club to keep himself in practice, and the man or woman who flies an aeroplane privately? This country requires air pilots at this time and they may require them desperately in the future. I should have thought the Government would have gone to great lengths to ensure that people helped themselves in this manner, instead of putting handicaps and hindrances in their way.

I do not think the Government realise that aeroplanes, "off the peg," are considerably cheaper, and are easier to obtain, than motor cars. A two-seater, serviceable aeroplane can be bought today for about £100, or a four-seater for about £250. Indeed, the two things which remain low in price under this Govern- ment are aeroplanes and champagne. The prices have come down. It is an extraordinary thing, but that is so. When we last debated this matter the Financial Secretary said: …we do not think it would be justifiable to single out what is, after all, only one form of transport in competition with other forms of transport."—[OFFICIAL REPORT, 5th June, 1951; Vol. 488, c. 894.] Here I must declare an interest in civil aviation. What the Financial Secretary entirely overlooked was that the nationalised air corporations have a distinct advantage over the privately-operated companies. Admittedly, they pay their tax to the Government, but we in this House vote moneys to make up their losses, whereas the privately-owned companies, operating sometimes in competition, not only with the nationalised corporations, but foreign companies as well, have to pay the full tax when operating in this country. That is anything but fair.

Ever since the aviation industry was nationalised the Government have set out to squeeze the smaller firms out of business. Time and again we have been given assurances, both here and in another place, that they were out to give them a fair deal, but nothing of the kind has happened. It is a gradual squeeze, but I consider that these companies will out-live the Government. They have shown great courage and great fortitude against every conceivable difficulty, and the time will come when they will be given the opportunity to show the country and the world what they can do. This is discrimination of the worst sort in favour of the nationalised industries.

10.30 p.m.

The aircraft industry is in the process of converting its aircraft from piston engines to turbo-jets, which fly on heavy hydrocarbon oils which do not attract this duty. It may well be that in one or two years we shall have piston-engined aircraft and turbo-jet aircraft flying on the same route, one paying tax and the other escaping it. Surely that is wrong and ought to be adjusted. More than likely there will be a shortage of heavy hydrocarbon oils as more jets come into being. The Minister said it was difficult to differentiate one form of transport from another, but he has given these exceptions in the fishing industry. There is no real difficulty in isolating the aviation industry as a whole, in my opinion.

Britain is still leading in the technical field in jet engines—I do not say in airframes, but we are certainly still in the lead in engines, and the manufacturers in this country have made a great contribution. They have given the Americans quite a lot, and I believe we have had very little repayment for it. This has been done, with the assistance of the Ministry of Supply, mainly by free enterprise, and to achieve this, thousands of hours of testing had to be carried out in engine testing beds.

Why should a company or individual have to pay petrol tax on engine testing for endurance tests in engine sheds or airfields? It does not make sense at all. The industry exported something like £35 million worth of aircraft and parts in the last few years, much of it to hard currency countries, and brought in a large amount of revenue by invisible exports in the form of licences and patents. Surely it should be encouraged to continue this work.

Last year the industry used something like 52,000 tons of aviation spirit. I do not see that it would cost the Government a great deal to free the industry from the burden of this 4½d. a gallon of new increase. Of these 52,000 tons, 60 per cent. is used on bench testing, and little actually in the air. We must concentrate on quality. We cannot hope to compete with the Americans or the Russians in numbers. We want quality goods, and there is a great opportunity now for the aviation industry to take a real lead. I beg the Government to give this matter their further consideration and see what can be done to give it this encouragement.

Mr. Charles Ian Orr-Ewing (Hendon, North)

I beg to second the Motion.

I support this Clause particularly on the score that we need a growing number of private owners with light and ultra-light aircraft. These people may form a very valuable reserve to this country at a future date. They are not people with large incomes, but young people who want to fly, and we should do everything possible to encourage them. We may have an emergency which would call for them, just as we had a Dunkirk, when it was the little boats and the little people who helped us out.

We have been told by the Government that in the re-armament programme, the air has been given priority for the defence of this country. This is a point of small cost, but I would ask the Chancellor of the Exchequer to try to lift the burden and encourage these young men to fly and make it cheaper for them to do so.

Mr. George Ward (Worcester)

I ask the Government to accept this proposed Clause if on no other grounds than those of ordinary common justice. At present, the charter companies are carrying the whole burden of aviation tax. If the costs of the nationalised corporations are heavy owing to this tax on petrol their losses are met out of the taxpayers' pockets. But the charter companies have no such remedy. They have to run their concerns on a commercial basis, and they feel very strongly that they should be exempted from this tax in order to run their businesses and expand them when possible.

Similarly, as was pointed out by my hon. Friend the Member for Hendon, North (Mr. C. I. Orr-Ewing), this tax falls very unfairly on private owners. If the Financial Secretary will look at this matter again I think he will find that there is definitely unfairness here which ought to be put right.

Surgeon Lieut.-Commander Bennett (Gosport and Fareham)

I, also, support this new Clause. It appears to me that the tax on petrol and light hydrocarbon oils has been primarily brought in to soak the motorist. I fail to see why it should be necessary to make aviation suffer in the same way. It seems to me that before the war America, which notably did not tax its aviation petrol, went right ahead and took the civil aviation markets of the world. Here, we are now imposing year by year greater penalties on aviation. The whole picture seems to be the very reverse of progress.

One of the things which are so incongruous seems to be that the tax applies only to certain parts of various routes. An airline flying from a foreign country, say, to the north of England pays tax only on the parts of its route that are in England. The part that is not in England is tax free. The part of the route in England pays two and a half times the amount of tax that it did even in 1949. That seems an utterly incongruous position.

The corporations stand to be hit heavily in their accounting, if not in ultimate fact, and particularly British European Airways. I have estimated that whatever their trading results may be, something like £200,000 in the current year will be lost by them purely in paying this tax alone; and although the taxpayer may pay it back to them it would seem to be wiser not to take the tax from the corporations in the first place. As for the miserable private operators, against whom there is this feud on the part of the Government, they are to be left to die. Furthermore, the industry which has caught up with very much of the United States' lead recently, is now being hit in a very left-handed way as a reward for its efforts.

When we consider that bench testing and test flying of engines is taxed as if it were a case of pleasure motoring, it seems that there is something very wrong. What is the Chancellor's bias against the piston engine? Why should he have it in for piston engines and not for jets? Why should one be penalised and the other not? It is progressive to be making jet engines, but we cannot do without piston engines. Why cannot they be encouraged rather than discouraged?

The whole burden on the industry may seem a minor matter when compared with the vaster expenditures which are being made today. The difficulties of the industry may seem small compared with some of the other difficulties in this Socialist era, but surely the principle of this matter is important. Here we have a tax which is absolutely capricious in its application. It has about as much method as the landings of a grasshopper, or should I say a locust. It is so inequitable and incongruous that it should be removed.

Lieut.-Colonel Sir Thomas Moore (Ayr)

I should like to give one concrete example of what was so well put by my hon. and gallant Friend. I do not apologise for giving the direct example of Prestwick Airport. There we have an airfield at which two undertakings are running side by side—a nationalised air industry and a charter company. They both operate from the same airport, using the same airfield and operating from the same sheds. The nationalised industry has the whole force of the British taxpayer behind it. I believe that £8 million was placed at the disposal of British European Airways to meet possible losses, while the charter company, Scottish Aviation, Ltd., has to bear the total cost of everything it incurs in testing on the bench, as well as in flying.

Mr. Manuel (Central Ayrshire)

The hon. and gallant Member's argument is unfair. I am sure that he realises that Scottish Aviation, Ltd., could not have operated unless £1 million, or more, of the taxpayers' money had been spent on the airport.

Sir T. Moore

I am sorry that I have once more to expose the futility of the hon. Member's argument. As he knows, or ought to know, this charter company was started long before the war. It was started and operated long before nationalisation was thought of, thank goodness. It trained Battle of Britain pilots who won the war for us in the initial stages. Afterwards, when the war started, the Government poured money, to the extent, I believe, of about £2 million, into the place, for the benefit of the country.

But that does not detract from my argument regarding two flying industries, one nationalised and supported by the taxpayer, and the other having to bear its every cost, both operating from the same aerodrome. The charter company has to test its own machines on its own benches, and to pay the cost. Surely this is a concrete example which should appeal to the commonsense and intelligence of hon. Gentlemen opposite, and enable them to meet the request which has been made.

Mr. Jay

This Clause refers to the tax upon hydrocarbon oils, rather than to Scottish aviation. I should like to assure hon. Members that the tax is paid equally by publicly-owned and privately-owned aircraft companies. The hon. and gallant Member for Macclesfield (Air Commodore Harvey) is an enthusiast for air transport, and always puts his case persuasively; but he did not persuade me tonight that the arguments which I put forward during the Committee stage were inadequate.

First of all, we ought to be clear, as the hon. and gallant Member for Gosport and Fareham (Surgeon Lieut.-Commander Bennett) said, that petrol used in aircraft when flying outside this country is exempt from tax. That is not an anomaly. That is part of the whole structure of Customs and Excise by which an excise tax is remitted on goods exported, and upon operations outside the United Kingdom.

There are two reasons why we do not think it would be right to charge a different tax on petrol when used in aircraft. The first is an administrative argument that if, in any way or in any respect, one has petrol or light oils of any kind available in the country which have not borne tax, the risk of abuse and evasion, and the need for policing, and so forth, is bound to occur. The hon. and gallant Member for Macclesfield, I think, said that we had done this in the case of the fishing industry, and that we could, therefore, clearly do it in a similar way in the case of aviation. That is a rather unfortunate example, because it was not this Government which gave the concession to the fishing industry, but the right hon. Gentleman the Leader of the Opposition, who, when introducing it, said most explicitly that in giving that remission it must not be used as an argument for its extension in other directions.

Mr. Geoffrey Lloyd

What year?

Mr. Jay


10.45 p.m.

Air Commodore Harvey

When my -right hon. Friend made that concession aviation was in its infancy. Is it realised that the fuel used in modern aircraft is of a high octane value and is most unsuitable for motor cars? The hon. Gentleman's argument does not really stand up.

Mr. Jay

The right hon. Gentleman said that the concession should not be extended to anything else, and it is, therefore, irrelevant to the argument to say that the industry was in its infancy when the concession was introduced.

The hon. and gallant Member for Gosport and Fareham (Surgeon Lieut.-Commander Bennett) said this was really a tax on road traffic and should not be extended to other things. That, again, is a fallacy. This is not, and never has been, a tax on road transport. It is a tax on light hydrocarbon oils, and again, when the Leader of the Opposition introduced the tax, he made that quite explicit, and every Government since has adhered to that doctrine about the tax. So that argument is not a forceful one.

The reason why we should not accept this Clause is that, basically, there is no case for giving exemption from the tax to one form of internal transport in this country. Aviation is a form of transport which we all want to see encouraged and fostered, and we are glad to see it thriving, whether it is publicly owned or privately owned. But there is no case for giving a large competitive advantage to a form of transport which is in competition with other forms of transport in this country. The hon. and gallant Gentleman pointed out that aircraft are one of the things which are lower in price today than they were some years ago, which shows that aviation is an increasingly effective and an increasingly expanding form of transport in competition with others, and that strengthens the argument against giving a discriminatory remission in its favour.

Air Commodore Harvey

I am sure that the hon. Gentleman does not want to misrepresent what I said. I said that certain types of aircraft were very cheap because they are war disposal items and are flown for one year, at the end of which most people are not able to afford the renewal cost of the air certificate. Will the hon. Gentleman address himself to the argument which I put about the testing of engines on the bench, which are not transport engines?

Mr. Jay

I was coming to that. First, I should like to answer the remark made by the hon. and gallant Gentleman about not giving that careful consideration which we said on the Committee stage we had done. I can assure the hon. and gallant Gentleman that there was no subject in connection with the Finance Bill on which we spent more hours in discussion, both this year and last, than this question of the petrol tax for civil aviation. We debated it with the Customs and Excise and also with the Ministry of Civil Aviation, as my hon. Friend the Parliamentary Secretary will confirm. The hon. and gallant Gentleman may not agree with conclusions reached, but we went into it very thoroughly and at considerable length.

Finally, there is the question of fuel for bench testing aircraft engines. There again, the bench testing of engines is, of course, only one operation of the kind that goes on in engineering factories. There is bench testing of other engines, such as motor engines, agricultural tractor engines and engines for sea-going craft of one kind or other. It does not seem to us to be possible to discriminate in that way between one operation and another which may very well be going on in the same fashion. We do not think that a case has been made out for the new Clause, and we ask the House to reject it.

Mr. Geoffrey Lloyd

This is the third time in which an ill-considered comparison by the Chancellor or the Financial Secretary to petrol prices in this country, because of their tax, with those abroad, have come as a boomerang; because, here again, with this example, we are able to inform them that in many other countries aviation spirit has a rebate which it does not enjoy in Britain. That is so notably in the United States, Canada, and New Zealand. In endeavouring to rebut the speech of my hon. and gallant Friend who moved the Clause, he said that both the charter companies and the Corporations equally paid this tax. Of course, it is true that they pay it equally in the first instance; but the extra expenses which fall upon the charter companies are paid, and fall permanently upon them, whereas the extra expenses falling on the Corporations are paid for by the taxpayer.

Last year, the Financial Secretary himself put this point much better than I could, when he said that it was not particularly sensible that the Government should raise money with one hand from the Corporations, and then pay it back with the other by way of a subsidy.

Mr. Jay

I made that argument so I could reply to it.

Mr. Lloyd

I agree, but I was very decently trying to draw a veil over the reply which he made because I thought it not particularly good. But, if he wishes, I will quote: On the other hand, I think that if we were to give an exemption, particularly in the instance of civil aviation, it would be said that we were, by the back door, as it were, subsidising a publicly-owned industry while privately-owned industries were being asked to, pay a higher price."—[OFFICIAL REPotrr, 14th June, 1950; Vol. 476, c. 417.] The hon. Gentleman could say that the proposal came from this side of the House, and that it would be weak of us to condemn our own proposal; and, for that reason, I did not go into it further. I did not wish to be unfair to him. I think that the House will recollect that, in the discussion which we have had on various aspects of the petrol tax, one of the anxieties in the minds of those on this side has been that we are in danger of unduly hindering the development of a whole series of activities like the ownership of motor cars in popular hands. The 40 million cars in the United States, compared with the comparatively small number here is one example. I suggest that although the numbers are rather small, and we are dealing here with something not so developed as the motor car, yet the air sense of the country is extremely important.

The Government are in danger, by this heavy tax on private flying, of hindering a development in flying which we do not want to happen. I want to be quite fair to the Government, and point out that they have made an acceptance in principle, by giving the drawback for the flying clubs. That is important, and helpful, but it does not completely meet the point; it is a considerable facility for the clubs, but that kind of flying is entirely based on an hour's, or one-and-a-half hours', or even only half-an-hour's flying at the week-end. It excludes the more extended types of flight, which must be useful in the broader sense.

Briefly, to put the matter in perspective I would remind the House that before the war there were between 600 and 700 privately owned aircraft in this country. Many of them were requisitioned immediately on the outbreak of the war for war purposes, showing that they had a considerable value when we came to that unfortunate crisis. After the war we got down to 141. The number gradually crept up to over 300; and now, since this rather heavy petrol tax, it has gone back to 259. That is the number for this country, with a population of 50 million.

In Australia the number is about the same, but the population is 7,500,000; in Canada the number is over 700 among a population slightly larger than Australia's; and in the United States it is approximately 15,000, compared with our 259. All this is just a little reminder to the House of the different scale on which the whole thing is proceeding in the up-to-date and prosperous nations of the world. In the United States there is one privately-owned aircraft for every 10,000 of the population, whereas we have one privately-owned aircraft for nearly every 200,000 of the population. I therefore hope that the Government will really consider that we should have a concession on this point, and for the reasons I have given.

Unless this drawback or rebate is given we shall have accumulated a great number of anomalies in this matter. For example,

a B.O.A.C. Constellation flying to Filton pays the tax; a Constellation flying to Dublin does not pay the tax. A piston engine using petrol pays the tax; a jet aircraft using paraffin does not. B.E.A. does not, in fact, despite what the Financial Secretary said, pay tax, and charter companies do. Private fliers in the clubs do not pay tax; private fliers outside the clubs do pay tax. Petrol used as a result of the Chancellor's concession earlier today for industrial processes for export goods does not pay tax; petrol used for bench testing aero-engines for export does pay tax. It is a perfect nest and bundle of anomalies, and I hope that my hon. and gallant Friend will press his Motion to a Division.

Question put, "That the Clause be read a Second time."

The House divided: Ayes. 262; Noes, 278.

Division No. 157.] AYES [10.58 p.m.
Aitken, W. T. Crouch, R. F. Hinchingbrooke, Viscount
Alport, C. J. M. Crowder, Capt. John (Finchley) Hirst, Geoffrey
Amery, Julian (Preston, N.) Crowder, Petre (Ruislip—Northwood) Hollis, M. C.
Amory, Heathcoat (Tiverton) Cundiff, F. W. Hope, Lord John
Arbuthnot, John Darling, Sir William (Edinburgh, S.) Hopkinson, Henry
Ashton, H. (Chelmsford) Davies, Nigel (Epping) Hornsby-Smith, Miss P
Assheton, Rt. Hon. R. (Blackburn, W.) de Chair, Somerset Horsbrugh, Rt. Hon. Florence
Astor, Hon. M. L. De la Bére, R. Howard, Gerald (Cambridgeshire)
Baldock, Lt.-Cmdr. J. M Deedes, W. F. Howard, Greville (St. Ives)
Baldwin, A. E. Doods-Parker, A. D. Hudson, Sir Austin (Lewisham, N.)
Banks, Col. C. Donner, P. W. Hudson, Rt. Hon. Robert (Southport)
Baxter, A. B. Douglas-Hamilton, Lord Malcolm Hudson, W. R. A. (Hull, N.)
Beamish, Maj, Tufton Drayson, G. B. Hulbert, Wing Cmdr. N. J.
Bell R. M Drewe, C. Hurd, A. R.
Bennett, Dr. Reginald (Gosport) Dugdale, Maj. Sir Thomas (Richmond) Hutchinson, Geoffrey (llford, N.)
Bennett, William (Woodside) Duncan, Capt. J. A. L. Hutchison, Lt.-Com. Clark (E'b'rgh W.)
Bevins, J. R. (Liverpool, Toxteth) Dunglass, Lord Hutchison, Col. James (Glasgow)
Birch, Nigel Duthie, W. S. Hylton-Foster, H. B.
Bishop, F. P. Eccles, D. M. Jennings, R.
Black, C. W. Erroll, F. J. Johnson, Howard (Kemptown)
Boles, Lt.-Col. D. C. (Wells) Fisher, Nigel Jones, A. (Hall Green)
Bossom, A. C. Fletcher, Walter (Bury) Joynson-Hicks, Hon. L. W
Boyd-Carpenter, J. A. Fort, R. Kaberry, D.
Boyle, Sir Edward Foster, John Kerr, H. W (Cambridge)
Bracken, Rt. Hon. B. Fraser, Hon. Hugh (Stone) Kingsmill, Lt.-Col. W. H
Braine, B. R. Fyfe, Rt. Hon. Sir David Maxwell Lambert, Hon. G.
Braithwaite, Sir Albert (Harrow, W.) Gage, C. H. Lancaster, Col C G
Braithwaite, Lt.-Cdr. G. (Bristol, N.W) Galbraith, Cmdr. T. D. (Pollok) Langford-Holt, J.
Bromley-Davenport, Lt.-Col. W. Gammans, L. D. Law, Rt. Hon. R. K
Brooke, Henry (Hampstead) Garner-Evans, E. H. (Denbigh) Leather, E. H. C.
Browne, Jack (Govan) Gates, Maj. E. E. Legge-Bourke. Mai. E. A. H
Buchan-Hepburn, P. G. T. George, Lady Megan Lloyd Lennox-Boyd, A. T
Bullus, Wing Commander E. E. Gridley, Sir Arnold Lindsay, Martin
Burden, F. A. Grimston, Hon. John (St. Albans) Linstead, H. N.
Butcher, H. W. Grimston, Robert (Westbury) Lloyd, Rt. Hn. G. (King's Norton)
Butler, Rt. Hn. R. A. (Saffron Walden) Hare, Hon. J. H. (Woodbridge) Lloyd, Maj. Guy (Renfrew, E.)
Carr, Robert (Mitcham) Harris, Frederic (Croydon, N) Lloyd, Selwyn (Wirral)
Carson, Hon. E. Harris, Reader (Heston) Lockwood, Lt.-Col. J. C.
Channon, H. Harvey, Air Codre. A. V. (Macclesfield) Longden, Gilbert (Herts, S.W.)
Churchill, Rt. Hon. W. S. Harvey, Ian (Harrow, E.) Low, A. R. W.
Clarke, Col. Ralph (East Grinslead) Harvie-Watt, Sir George Lucas, Sir Jocelyn (Portsmouth, S.)
Clarke, Brig. Terence (Portsmouth, W.) Hay, John Lucas, P. B. (Brentford)
Cooper, Sqn. Ldr Albert (llford, S) Head, Brig. A. H. Lucas-Tooth, Sir Hugh
Cooper-Key, E. M. Headlam, Lt.-Col. Rt. Hn Sir Cuthbert McAdden, S. J.
Corbett, Lt.-Col. Uvedale (Ludlow) Heald, Lionel McCorquodale, Rt. Hon. M. S.
Craddock, Beresford (Spelthorne) Hicks-Beach, Maj. W. W Macdonald, A. J. F. (Roxburgh)
Cranborne, Viscount Higgs, J. M. C Macdonald, Sir Peter (I. of Wight)
Creokshank, Capt. Rt. Hon. H. F. C Hill, Dr. Charles (Luton) Mackeson, Brig. H. R.
Crosthwaite-Eyre, Col. O. E. Hill, Mrs. E. (Wythenshawe) McKibbin, A.
McKie, J. H. (Galloway) Powell, J. Enoch Sutcliffe, H.
Maclay, Hon. John Price, Henry (Lewisham, W.) Taylor, Charles (Eastbourne)
Maclean, Fitzroy Prior-Palmer, Brig O Taylor, William (Bradford, N.)
MacLeod, Iain(Enfield, W.) Profumo, J. D. Teeling, W.
MacLeod, John (Ross and Cromarty) Raikes, H. V. Teevan, T. L.
Maitland, Cmdr. J. W. Rayner, Brig. R Thomas, J. P. L. (Hereford)
Manningham-Buller, R. E. Redmayne, M. Thompson, Kenneth Pugh (Walton)
Marlowe, A. A. H. Remnant, Hon. P. Thompson, Lt.-Cmdr. R. (Croydon, W.)
Marples, A. E. Renton, D. L. M. Thorneycroft, Peter (Monmouth)
Marshall, Douglas (Bodmin) Roberts, Emrys (Merioneth) Thornton-Kemsley, Col. C. N.
Marshall, Sidney (Sutton) Roberts, Maj. Peter (Heeley) Thorp, Brigadier R. A. F
Maude, Angus (Ealing, S.) Robertson, Sir David (Caithness) Tilney, John
Maude, John (Exeter) Robinson, Roland (Blackpool, S.) Touche, G. C.
Maudling, R. Robson-Brown, W. Turner, H. F. L.
Mellor, Sir John Rodgers, John (Sevenoaks) Turton, R. H.
Molson, A. H. E Roper, Sir Harold Tweedsmuir, Lady
Monckton, Sir Walter Russell, R. S. Vane W. M. F
Moore, Lt.-Col. Sir Thomas Ryder, Capt. R. E. D. Vaughan-Morgan, J. K.
Morrison, John (Salisbury) Salter, Rt. Hon. Sir Arthur Vosper, D. F.
Morrison, Rt. Hon. W. S (Cirencester) Wade, D. W.
Mott-Radclyffe, C. E. Sandys, Rt. Hon, D. Wakefield, Edward (Derbyshire, W)
Nabarro, G. Scott, Donald Walker-Smith D C
Nicholls, Harmar Shepherd, William Ward, Hon. George (Worcester)
Nicholson, G. Smiles, Lt.-Col. Sir Walter Ward, Miss I. (Tynemouth)
Noble, Cmdr. A. H. P Smithers, Peter (Winchester) Waterhouse, Capt, Rt. Hon. C
Nugent. G. R. H. Smyth, Brig. J. G. (Norwood) Waterhouse, Capt, Rt. Hon.C
Nutting, Anthony Snadden, W. McN. Watkinson, H.
Oakshott, H. D. Soames, Capt. C. Webbe, Sir H. (London)
Odey, G. W. Spearman, A. C. M. Wheatley, Maj. M. J. (Poole)
O'Neill, Rt. Hon. Sir Hugh Spence, H. R. (Aberdeenshire, W.) White, Baker (Canterbury)
Ormsby-Gore, Hon. W. D. Spens, Sir Patrick (Kensington, S.) Williams, Charles (Torquay)
Orr, Capt. L. P. S. Stanley, Capt. Hon. Richard (N. Fylde) Williams, Gerald (Tonbridge)
Orr-Ewing, Charles Ian (Hendon, N,) Stevens, G. P. Williams, Sir Herbert (Croydon, E.)
Orr-Ewing, Ian L. (Weston-super-Mare) Steward. W. A. (Woolwich, W.) Wills, G.
Osborne, C. Stoddart-Scott, Col. M Wilson. Geoffrey (Truro)
Peaks, Rt. Hon. O. Storey, S. Wood, Hon R.
Perkins, W. R. D. Strauss, Henry (Norwich, S.) York, C.
Peto, Brig. C. H. M Stuart, Rt. Hon. James (Moray) TELLERS FOR THE AYES:
Pickthorn, K. Studholme, H. G. Major Conant and Mr. Digby
Pitman, I. J. Summers, G. S
Acland, Sir Richard Coldrick, W. Foot, M. M.
Adams, Richard Collick, P. Fraser, Thomas (Hamilton)
Albu, A. H. Collindridge, F. Freeman, John (Watford)
Allen, Arthur (Bosworth) Cook, T. F. Freeman, Peter (Newport)
Allen, Scholefield (Crewe) Cooper, Geoffrey (Middlesbrough, W.) Gaitskell, Rt. Hon. H. T. N.
Anderson, Frank (Whitehaven) Cooper, John (Deptford) Ganley, Mrs. C. S.
Attlee, Rt. Hon. C. R Cove, W. G. Gibson, C. W.
Awbery, S. S. Craddock, George (Bradford, S) Gilzean, A.
Ayles, W. H. Crawley, A. Glanville, James (Consett)
Baird, J. Crosland, C. A. R Gordon-Walker, Rt. Hon. P. C.
Balfour, A. Crossman, R. H. S Granville, Edgar (Eye)
Barnes, Rt. Hon. A. J Cullen, Mrs. A Greenwood, Anthony (Rossendale)
Bartley, P. Daines, P. Greenwood, Rt. Hon. Arthur (Wakefield)
Bellenger, Rt. Hon. F. J Dalton, Rt. Hon. H. Grenfell, Rt. Hon. D. R.
Benn, Wedgwood Darling, George (Hillsborough) Grey, C. F.
Benson, G. Davies, A. Edward (Stoke, N) Griffiths, David (Rother Valley)
Beswick, F. Davies, Ernest (Enfield, E.) Griffiths, Rt. Hon. James (Llanelly)
Bevan, Rt. Hon. A (Ebbw Vale) Davies, Harold (Leek) Griffiths, W. (Manchester Exchange)
Bing, G. H. C. Davies, Stephen (Merthyr) Gunter, R. J.
Blenkinsop, A. de Freitas, Geoffrey Haire, John E. (Wycombe)
Blyton, W. R. Deer, G. Hale, Joseph (Rochdale)
Boardman, H. Delargy, H. J Hale, Leslie (Oldham, W.)
Booth, A. Diamond, J. Hall, Rt. Hon. Glenvil (Colne Valley)
Bottomley, A. G Dodds, N. N. Hall, John (Gateshead, W.)
Bowden, H. W. Donnelly, D. Hamilton, W. W.
Bowles, F. G. (Nuneaton) Driberg, T. E. N. Hargreaves, A
Braddock, Mrs. Elizabeth Dugdale, Rt. Hon. John (W Bromwich) Hastings, S.
Brook, Dryden (Halifax) Ede, Rt. Hon. J. C. Hayman, F. H.
Brooks, T. J. (Normanton) Edelman, M. Henderson. Rt. Hon A. (Rowley Regis)
Broughton, Dr. A. D. D. Edwards, John (Brighouse) Hobson, C. R
Brown, Rt. Hon. George (Belper) Edwards, Rt. Hon. Ness (Caerphilly) Holman, P.
Brown, Thomas (Ince) Edwards, W. J. (Stepney) Holmes, Horace (Hemsworth)
Burke, W. A. Evans. Albert (Islington. S W) Houghton, D
Burton, Miss E. Evans, Edward (Lowestoft) Hoy, J.
Butler, Herbert (Hackney, S) Evans, Stanley (Wednesbury) Hubbard, T.
Carmichael, J. Ewart, R. Hudson, James (Ealing, N.)
Castle. Mrs. B. A Fernyhough, E Hughes, Emrys (S. Ayrshire)
Champion, A. J. Field, Capt. W J Hughes, Hector (Aberdeen, N.)
Chetwynd, G. R Finch, H. J. Hynd, H. (Accrington)
Clunie, J. Fletcher, Eric (Islington L) Hynd, J. B. (Attercliffe)
Cocks, F. S. Follick, M Irvine, A. J. (Edge Hill)
Irving, W. J. (Wood Green) Moody, A. S Sorensen, R. W
Isaacs, Rt. Hon. G. A. Morgan, Dr. H. B Soskice, Rt. Hon. Sir Frank
Janner, B. Morley, R. Sparks, J. A.
Jay, D. P. T. Morris, Percy (Swansea, W.) Strauss, Rt. Hon. George (Vauxhall)
Jeger, George (Goole) Mort, D. L. Stross, Dr. Barnett
Jeger, Dr. Santo (St. Pancras, S.) Moyle, A. Summerskill, Rt. Hon. Edith
Jenkins, R. H. Mulley, F. W. Sylvester, G. O.
Johnson, James (Rugby) Murray, J. D. Taylor, Bernard (Mansfield)
Jones, David (Hartlepool) Nally, W. Taylor, Robert (Morpeth)
Jones, Frederick Elwyn (West Ham, S.) Neal, Harold (Bolsever) Thomas, David (Aberdare)
Jones, Jack (Rotherham) Noel-Baker, Rt. Hon. P. J. Thomas, George (Cardiff)
Jones, William Elwyn (Conway) O'Brien, T. Thomas, Iorwerth (Rhondda, W.)
Keenan, W Oldfield, W. H. Thomas, Ivor Owen (Wrekin)
Kenyon, C. Oliver, G. H. Thorneycroft, Harry (Clayton)
Key, Rt. Hon. C. W. Orbach, M. Thurtle, Ernest
Kinghorn, Sqn. Ldr E Padley, W. E Timmons, J.
Kinley, J. Paget, R. T. Tomney, F.
Lang, Gordon Paling, Rt. Hon W. (Dearne Valley Turner-Samuels, M.
Lee, Miss Jennie (Cannock) Paling, Will T (Dewsbury) Ungoed-Thomas, Sir Lynn
Lever, Harold (Cheetham) Pannell, T. C. Usborne, H.
Lever, Leslie (Ardwick) Pargiter, G. A Vernon W F
Lewis, Arthur (West Ham, N.) Parker, J. Viant, S. P.
Lewis, John (Belton, W.) Paton, J Wallace. H. W
Lindgren, G. S. Pearson, A. Watkins, T. E
Lipton, Lt.-Col. M. Peart, T F Webb Rt. Hon M (Bradford C)
Logan, D. G. Popplewell E Weitzman D.
Longden, Fred (Small Heath) Porter, G.
McAllister, G. Price, Joseph T. (Westhoughton) Wells, William (Walsall)
MacColl, J. E. Price, Philips (Gloucestershire, W) West D G.
McGhee, H. G. Proctor, W. T. White Mrs. Eirene (E. Flint)
McGovern, J. Pryde, D. J. White, Henry (Derbyshire, N.E)
McInnes, J. Pursey, Cmdr. H Whiteley, Rt. Hon. W
Mack, J. D. Rankin, J.
Mackay, R. W. G. (Reading, N.) Rees, Mrs. D. Wigg, G
McLeavy, F. Reeves, J. Wilkes, L
MacMillan, Malcolm (Western Isles) Reid, Thomas (Swindon) Willey, Frederick (Sunderland)
McNeil, Rt. Hon. H. Rhodes, H. Willey, Octavius (Cleveland)
MacPherson, Malcolm (Stirling) Richards, R. Williams, David (Neath)
Mainwaring, W. H. Robens, Rt. Hon. A. Williams, Rev. Llywelyn (Adertillery)
Mallalieu, E. L. (Brigg) Roberts, Goronwy (Caernarvonshire) Williams, Ronald (Wigan)
Mallalieu, J. P. W. (Huddersfield, E.) Robertson, J. J. (Berwick) Williams, Rt. Hon. Thomas (Don V'lly)
Mann, Mrs. Jean Robinson, Kenneth (St. Pancras, N) Williams, W. T. (Hammersmith, S.)
Manuel, A. C. Rogers, George (Kensington, N.) Wilson, Rt. Hon. Harold (Huyton)
Marquand, Rt. Hon. H. A. Ross, William Winterbottom, Ian (Nottingham, C.)
Mathers, Rt. Hon. G. Shackleton, E. A. A. Winterbottom, Richard (Brightside)
Mayhew C P Shinwell, Rt. Hon. E. Wise, F. J.
Mellish, R, J Silverman, Julius (Erdington) Woodburn, Rt. Hon A
Messer, F. Silverman, Sydney (Nelson) Wyatt, W. L
Middleton, Mrs. L Simmons, C. J Yates, V. F
Mikardo, Ian. Slater, J. Younger, Rt Hon K
Mitchison, G. R Smith, Ellis (Stoke, S.)
Moeran, E. W Smith, Norman (Nottingham, S.) TELLERS FOR THE NOES:
Monslow, W. Snow, J. W. Mr. Wilkins and Mr. Royle

Question put, and agreed to.