§ Motion made, and Question proposed, That the Clause stand part of the Bill.
§ Mr. MitchisonWe are in a little procedural difficulty here. We cannot, of course, at this stage discuss the Sixth Schedule, and this Clause does no more
§ than incorporate it in the Bill, but we do not like the Sixth Schedule. We have quite a number of objections to it, and we therefore do not propose to allow this Clause to pass without taking a vote on it in order to register in anticipation the objections which we are going to make to the Sixth Schedule when we come to it.
§ Mr. ChapmanI want to say how very glad I was to hear my hon. and learned Friend the Member for Kettering (Mr. Mitchison) say that. I saw an expression of surprise on the face of the Financial Secretary, and I suppose he is thinking that because the Sixth Schedule to which I will not refer in detail, makes grants or loans to individuals liable to tax and deals with distributions on winding-up and so on, he is surprised that we should be voting against it.
I want to tell the hon. Gentleman that one of the things that annoys us intensely, for example, is that Surtax is going to be excluded on winding-up. Further on, when we come to other provisions, we find that certainly Profits Tax is excluded. Thirdly, and much more important than the other two, I do not believe that the provisions of the Sixth Schedule are at all watertight. I do not want to be out of order by discussing them now, but when we have to go into something like four and a half pages of close type in a Parliamentary Bill in order to put in some anti-avoidance provisions, it makes us realise how very complex the matter is, and how easy evasion is probably going to be for the people who specialise in that sort of thing. When we come to discuss the Sixth Schedule we shall have some suggestions to make as to how that evasion is likely to take place. The very complexity shows how difficult it is to check all these loopholes. I rose only to say how surprised I was to see the Financial Secretary register shock when we said that we would divide. There are very good reasons why we should do so.
§ Question put, That the Clause stand part of the Bill:—
§ The Committee divided: Ayes 227. Noes 176.
525| Division No. 150.] | AYES | [8.51 p.m. |
| Agnew, Sir Peter | Amory, Rt. Hn. Heathcoat (Tiverton) | Atkins, H. E. |
| Aitken, W. T. | Arbuthnot, John | Baldock, Lt.-Cmdr. J. M. |
| Allan, R. A. (Paddington, S.) | Armstrong, C. W. | Baldwin, A, E. |
| Amery, Julian (Preston, N.) | Ashton, H. | Balniel, Lord |
| Barber, Anthony | Heath, Rt. Hon. E. R. G. | Orr-Ewing, Charles Ian (Hendon, N.) |
| Barlow, Sir John | Henderson, John (Cathcart) | Osborne, C. |
| Barter, John | Henderson-Stewart, Sir James | Page, R. G. |
| Baxter, Sir Beverley | Hesketh, R. F. | Pannell, N. A. (Kirkdale) |
| Bell, Philip (Bolton, E.) | Hicks-Beach, Maj, W. W. | Partridge, E. |
| Bell, Ronald (Bucks, S.) | Hill, Rt. Hon. Charles (Luton) | Peyton, J. W. W. |
| Bidgood, J. C. | Hill, Mrs. E. (Wythenshawe) | Pickthorn, K. W. M. |
| Birch, Rt. Hon. Nigel | Hill, John (S. Norfolk) | Pike, Miss Mervyn |
| Bishop, F. P. | Hirst, Geoffrey | Pilkington, Capt. R. A. |
| Black, C. W. | Holland-Martin, C. J. | Pitt, Miss E. M. |
| Body, R. F. | Holt, A. F. | Pott, H. P. |
| Bossom, Sir Alfred | Hope, Lord John | Powell, J. Enoch |
| Bowen, E. R. (Cardigan) | Hornby, R. P. | Price, Henry (Lewisham, W.) |
| Boyd-Carpenter, Rt. Hon. J. A. | Hornsby-Smith, Miss M. P. | Profumo, J. D. |
| Braine, B. R. | Horobin, Sir Ian | Raikes, Sir Victor |
| Brooman-White, R. C. | Howard, Hon. Greville (St. Ives) | Ramsden, J. E. |
| Bryan, P. | Howard, John (Test) | Rawlinson, Peter |
| Bullus, Wing Commander E. E. | Hudson, W. R. A. (Hull, N.) | Redmayne, M. |
| Burden, F. F. A. | Hughes Hallett, Vice-Admiral J. | Rees-Davies, W. R. |
| Butler, Rt. Hn. R. A. (Saffron Walden) | Hughes-Young, M. H. C. | Remnant, Hon. P, |
| Carr, Robert | Hurd, A. R. | Renton, D. L. M. |
| Cary, Sir Robert | Hutchison, Michael Clark (E'b'gh, S.) | Ridsdale, J. E. |
| Channon, Sir Henry | Hutchison, Sir Ian Clark (E'b'gh, W.) | Rippon, A. G. F. |
| Chichester-Clark, R. | Hutchison, Sir James (Scotstoun) | Robinson, Sir Roland (Blackpool, S.) |
| Clarke, Brig. Terence (Portsmth, W.) | Hylton-Foster, Rt. Hon. Sir Harry | Rodgers, John (Sevenoaks) |
| Cooke, Robert | Iremonger, T. L. | Roper, Sir Harold |
| Cordeaux, Lt.-Col. J. K. | Irvine, Bryant Godman (Rye) | Ropner, Col. Sir Leonard |
| Corfield, Capt. F. V. | Jenkins, Robert (Dulwich) | Russell, R, S. |
| Craddock, Beresford (Spelthorne) | Jennings, J. C. (Burton) | Schofield, Lt.-Col. W. |
| Crowder, Sir John (Finchley) | Johnson, Dr. Donald (Carlisle) | Scott-Miller, Cmdr. R. |
| Crowder Petre (Ruislip—Northwood) | Johnson, Eric (Blackley) | Sharples, R. C. |
| Cunningham, Knox | Joynson-Hicks, Hon. Sir Lancelot | Shepherd, William |
| Currie, G. B. H. | Keegan, D. | Simon, J. E. S. (Middlesbrough, W.) |
| Dance, J. C. C. | Kerby, Capt. H. B. | Smithers, Peter (Winchester) |
| Davidson, Viscountess | Kerr, Sir Hamilton | Smyth, Brig. Sir John (Norwood) |
| Davies, Rt. Hn. Clement (Montgomery) | Kershaw, J. A. | Spearman, Sir Alexander |
| D'Avigdor-Goldsmid, Sir Henry | Kimball, M. | Spence, H. R. (Aberdeen, W.) |
| Deedes, W. F. | Kirk, P. M. | Spens, Rt. Hn. Sir P. (Kens'gt'n, S.) |
| Dodds-Parker, A. D. | Lagden, G. W. | Stanley, Capt. Hon. Richard |
| Doughty, C. J. A. | Leather, E. H. C. | Stevens, Geoffrey |
| Drayson, G. B. | Leavey, J. A. | Steward, Harold (Stockport, S.) |
| du Cann, E. D. L. | Legge-Bourke, Maj. E. A. H. | Storey, S. |
| Dugdale, Rt. Hn. Sir T. (Richmond) | Legh, Hon. Peter (Petersfield) | Studholme, Sir Henry |
| Eden, J. B. (Bournemouth, West) | Lindsay, Hon. James (Devon, N.) | Summers, Sir Spencer |
| Elliott. R. W. (N'castle upon Tyne, N.) | Lindsay, Martin (Solihull) | Sumner, W. D. M. (Orpington) |
| Errington, Sir Eric | Lloyd, Maj. Sir Guy (Renfrew, E.) | Taylor, Sir Charles (Eastbourne) |
| Farey-Jones, F. W. | Lucas, P. B. (Brentford & Chiswick) | Teeling, W. |
| Fell, A. | Lucas-Tooth, Sir Hugh | Temple, John M. |
| Fletcher-Cooke, C. | McAdden, S. J. | Thomas, Leslie (Canterbury) |
| Foster, John | Macdonald, Sir Peter | Thompson, Kenneth (Walton) |
| Fraser, Sir Ian (M'cmbe & Lonsdale) | Mackeson, Brig. Sir Harry | Thompson, Lt.-Cdr. R. (Croydon, S.) |
| Freeth, Denzil | Mackie, J. H. (Galloway) | Thorneycroft, Rt. Hon. P. |
| Gammans, Lady | McLaughlin, Mrs. P. | Thornton-Kemsley, C. N. |
| Garner-Evans, E. H. | Maclean, Fitzroy (Lancaster) | Tilney, John (Wavertree) |
| George, J. C. (Pollok) | McLean, Neil (Inverness) | Turton, Rt. Hon. R. H. |
| Glover, D. | Macmillan, Maurice (Halifax) | Tweedsmuir, Lady |
| Gomme-Duncan, Col. Sir Alan | Macpherson, Niall (Dumfries) | Vane, W. M. F. |
| Goodhart, Philip | Maddan, Martin | Vaughan-Morgan, J. K. |
| Gower, H. R. | Maitland, Cdr. J. F. W. (Horncastle) | Vickers, Miss Joan |
| Graham, Sir Fergus | Maitland, Hon. Patrick (Lanark) | Wade, D. W. |
| Grant, W. (Woodside) | Manningham-Buller, Rt. Hon. Sir R. | Wakefield Edward (Derbyshire, W.) |
| Grant-Ferris, Wg Cdr. R. (Nantwich) | Markham, Major Sir Frank | Wall, Major Patrick |
| Green, A. | Marshall, Douglas | Ward, Rt. Hon. C. R. (Worcester) |
| Grimston, Sir Robert (Westbury) | Mathew, R. | Ward, Dame Irene (Tynemouth) |
| Grosvenor, Lt.-Col. R. G. | Maudling, Rt. Hon. R. | Webbe, Sir H. |
| Gurden, Harold | Mawby, R. L. | Whitelaw, W. S. I. |
| Hall, John (Wycombe) | Maydon, Lt.-Comdr. S. L. C. | Williams, Paul (Sunderland, S.) |
| Harris, Frederic (Croydon, N.W.) | Milligan, Rt. Hon. W. R. | Wills, G. (Bridgwater) |
| Harris, Reader (Heston) | Mott-Radclyffe, Sir Charles | Woollam, John Victor |
| Harrison, Col. J. H. (Eye) | Nabarro, G. D. N. | |
| Harvey, Sir Arthur Vere (Macclesfd) | Neave, Airey | TELLERS FOR THE AYES: |
| Harvey, John (Walthamstow, E.) | Nicolson, N. (B'n'm'th, E. & Chr'ch) | Mr. Oakshott and Mr. Finlay. |
| Heald, Rt. Hon. Sir Lionel | Nugent, G. R. H. | |
| NOES | ||
| Ainsley, J. W. | Baird, J. | Blyton, W. R. |
| Allaun, Frank (Salford, E.) | Benn, Hn. Wedgwood (Bristol, S.E.) | Boardman, H. |
| Allen, Arthur (Bosworth) | Benson, G. | Bottomley, Rt. Hon. A. G. |
| Allen, Scholefield (Crewe) | Beswick, Frank | Bowden, H. W. (Leicester, S.W.) |
| Awbery, S. S. | Blackburn, F. | Bowles, F. G. |
| Bacon, Miss Alice | Blenkinsop, A. | Boyd, T. C. |
| Brockway, A. F. | Janner, B. | Price, J. T. (Westhoughton) |
| Brown, Thomas (Ince) | Jay, Rt. Hon. D. P. T. | Price, Philips (Gloucestershire, W.) |
| Burton, Miss F. E. | Jeger, Mrs. Lena (Holbn & St. Pncs. S.) | Probert, A. R. |
| Champion, A. J. | Jenkins, Roy (Stechford) | Proctor, W. T. |
| Chapman, W. D. | Johnson, James (Rugby) | Pryde, D. J. |
| Clunie, J. | Jones, Rt. Hon. A. Creech (Wakefield) | Randall, H. E. |
| Coldrick. W. | Jones, David (The Hartlepools) | Rankin, John |
| Collick, P. H. (Birkenhead) | Jones, Jack (Rotherham) | Redhead, E. C. |
| Collins, V. J. (Shoreditch & Finsbury) | Jones, J. Idwal (Wrexham) | Rhodes, H, |
| Corbet, Mrs. Freda | Jones, T. W. (Merioneth) | Roberts, Goronwy (Caernarvon) |
| Cove, W. G. | Kenyon, C. | Rogers, George (Kensington, N.) |
| Craddock, George (Bradford, S.) | Key, Rt. Hon. C. W. | Ross, William |
| Cronin, J. D. | King, Dr. H. M. | Royle, C. |
| Crossman, R. H. S. | Lawson, G. M. | Short, E. W. |
| Davies, Harold (Leek) | Ledger, R. J. | Skeffington, A. M. |
| Deer, G. | Lee, Frederick (Newton) | Slater, Mrs. H. (Stoke, N.) |
| de Freitas, Geoffrey | Lee, Miss Jennie (Cannock) | Slater, J. (Sedgefield) |
| Delargy, H. J. | Lewis, Arthur | Sorensen, R. W. |
| Dodds, N. N. | Lindgren, G. S | Soskice, Rt. Hon. Sir Frank |
| Dugdale, Rt. Hn. John (W. Brmwch) | Logan, D. G. | Sparks, J. A. |
| Edelman, M. | MacColl, J. E. | Steele, T. |
| Edwards, Rt. Hon. John (Brighouse) | McInnes, J. | Stewart, Michael (Fulham) |
| Evans, Albert (Islington, S.W.) | McKay, John (Wallsend) | Stonehouse, John |
| Fernyhough, E. | MacMillan, M. K. (Western Isles) | Stones, W. (Consett) |
| Flenburgh, W. | MacPherson, Malcolm (Stirling) | Strachey, Rt. Hon. J. |
| Fletcher, Eric | Mahon, Simon | Swingler, S. T. |
| Fraser, Thomas (Hamilton) | Mallalieu, E. L. (Brigg) | Sylvester, G. O. |
| Gaitskell, Rt. Hon. H. T. N. | Mann, Mrs. Jean | Taylor, John (West Lothian) |
| Gibson, C. W. | Marquand, Rt. Hon. H. A. | Thomson, George (Dundee, E.) |
| Gooch, E. C. | Mellish, R. J. | Thornton, E. |
| Gordon Walker, Rt. Hon. P. C. | Messer, Sir F. | Tomney, F. |
| Greenwood, Anthony | Mikardo, Ian | Ungoed-Thomas, Sir Lynn |
| Grey, C. F. | Mitchison, G. R. | Viant, S. P. |
| Griffiths, David (Rother Valley) | Monslow, W. | Warbey, W. N. |
| Griffiths, Rt. Hon. James (Llanelly) | Moody, A. S. | Wells, Percy (Faversham) |
| Hale, Leslie | Morris, Percy (Swansea, W.) | West, D. G. |
| Hall, Rt. Hn. Glenvil (Colne Valley) | Moyle, A. | Wheeldon, W. E. |
| Hamilton, W. W. | Mulley, F. W. | White, Mrs. Eirene (E. Flint) |
| Hastings, S. | Noel-Baker, Rt. Hon. P. (Derby, S.) | White, Henry (Derbyshire, N.E.) |
| Hayman, F. H. | Oliver, G. H. | Wilcock, Group Capt. C. A. B. |
| Healey, Denis | Oram, A. E. | Wilkins, W. A. |
| Henderson, Rt. Hn. A. (Rwly Regis) | Orbach, M. | Willey, Frederick |
| Hobson, C. R. (Keighley) | Oswald, T. | Williams, Rev. Llywelyn (Ab'tillery) |
| Holmes, Horace | Padley, W. E. | Williams, Ronald (Wigan) |
| Houghton, Douglas | Palmer, A. M. F. | Williams, Rt. Hon. T. (Don Valley) |
| Howell, Charles (Perry Barr) | Pannell, Charles (Leeds, W.) | Williams, W. R. (Openshaw) |
| Hughes, Cledwyn (Anglesey) | Pargiter, G. A. | Willis, Eustace (Edinburgh, E.) |
| Hughes, Emrys (S. Ayrshire) | Parker, J. | Wilson, Rt. Hon. Harold (Huyton) |
| Hughes, Hector (Aberdeen, N.) | Parkin, B. T. | Winterbottom, Richard |
| Hunter, A. E. | Peart, T. F. | Woof, R. E. |
| Hynd, H. (Accrington) | Pentland, N. | Yates, V. (Ladywood) |
| Hynd, J. B. (Attercliffe) | Popplewell, E. | |
| Irving, Sydney (Dartford) | Prentice, B. E. | TELLERS FOR THE NOES: |
| Mr. Pearson and Mr. Simmons. |
§ Clause Ordered to stand part of the Bill.
§ Clause 25 Ordered to Stand part of the Bill