§ Mr. William Clark (Nottingham. South)I beg to move Amendment No. 98 239, Clause 57, in page 121, line 1, after "trade", to insert
and to relief under section 51(1) as for an allowable loss sustained by the successor".This matter was raised in Committee on the Question, "That the Clause stand part of the Bill". During the reply, the Minister without Portfolio was kind enough to say that he would look into it and, if anything was necessary, he would table an Amendment on Report. Nothing was done, and as a result, my hon. Friends and myself tabled this Amendment.I will not weary the House with a rehearsal of all the arguments as to why this Amendment is necessary, except to say that on the reconstruction of a company, under the Income Tax Acts there is opportunity to carry forward trading losses and unexpended capital allowances. Thus, on a reconstruction, one can carry forward Income Tax losses, and all we say in this Amendment is that one should also be able to carry forward capital losses.
The Minister without Portfolio was kind enough to write to me on this point following the debate in Committee, and he pointed out quite fairly that Income Tax losses can be carried forward and that losses or profits on machinery are dealt with in capital allowances, balancing allowances or charges. The only capital losses one might not have dealt with would be losses on land or buildings. I think that the Minister without Portfolio will agree that he thinks that this is a very narrow field; the range is very limited, and, consequently, not very much hardship would occur to a reconstructed company if it could not carry forward its losses on land or industrial buildings.
With the greatest respect, that is a wrong policy for the Government. If there is a hardship, narrow or wide, and the Government accept that there is a hardship, I would have thought it essential to cover that particular taxpayer, which is why we have tabled the Amendment. I do not think that anyone on either side would say that if a matter of principle affects only one person it is any less important than a matter of principle affecting 100 persons. That is the difference between us.
Under the Corporation Tax there is the question of plough-back. I will not 99 go into the arguments on that, but, quite obviously, if the Government are right, many companies will have more and more money to invest. If they are to invest in plant and machinery or factories, or whatever it may be, they cannot just get their money immediately and put up their new factory. They will have to invest that money until their plans are ready to put up their new factory. It is possible that if there is a reconstruction in the interim and there is a realisation on the equity shares they may have, there may again be a capital loss. That is extending the sphere further than losses on land or buildings.
Without wearying the House very much longer, I hope that the Minister without Portfolio has the point that I am trying to make. I do not think that the Amendment is at all a narrow one. It will not apply to very many people, but it will apply to some companies. Consequently, if the Government are endeavouring to be fair—and that is illustrated by the very fact that they have accepted some of our Amendments, and many of the Amendments they have tabled are in response to the initiative of this side in Committee—and if they are saying that they want the Corporation Tax to work smoothly and justly, here is one way in which the Government can prove their words. They can accept the Amendment.
§ The Minister without Portfolio (Sir Eric Fletcher)The hon. Member for Nottingham, South (Mr. William Clark) is quite right. This question was raised in Committee on the Question, That the Clause stand part of the Bill". The hon. Gentleman then made the point which he made again quite succinctly this evening. In the interval he wrote to me and I replied. It is indeed a narrow point, although it is one of substance. When the hon. Gentleman said that it was a narrow point, I think that he meant that it has a narrow application. It can apply only in a very small number of cases, as I pointed out to him in my letter. That is not the reason why in my letter I said that we were unwilling to accept the argument. It must be dealt with on its merits.
Here we are dealing with companies that are reconstructed. It is quite proper 100 that, where there is a reconstruction of a company, the trading losses of the old company should be carried forward so that the new reconstructed company should have the benefit of them. It is, equally, quite proper that capital allowances should be carried forward, because, after all, a reconstruction is quite different from a sale. A reconstruction is not, as a rule, anything more than a reorganisation for the internal purposes of the company. Therefore, broadly, it is right that the reconstructed company should substantially get the advantages, as it does, of being able to carry forward both trading losses and the benefit of capital allowances, balancing charges, and so forth.
The Amendment seeks to extend that principle and to apply it so that on a reconstruction the new company can have the benefit of any capital losses incurred by the old company. If the hon. Gentleman will reflect for a moment, he will recognise that that would be an innovation. That would be a departure from our existing arrangement, because, under the existing law, on a reconstruction a company cannot carry forward a capital loss incurred for purposes of Case VII where the short-term capital gain operates as at present. That was the law introduced by the Conservative Government.
The reasons which made it wise for the Government at that time to exclude cases falling within Case VII of the short-term capital gains scheme apply a fortiori to the introduction of the long-term Capital Gains Tax. We see no reason why, in the substitution of the one for the other, the Chancellor should be any more generous than the previous Government were on an analogous set of circumstances.
Therefore, although I repudiate any suggestion that the Government want to be anything other than extremely fair in all these matters, as the hon. Gentleman has acknowledged by pointing to the way in which we have accepted various Amendments which we think are reasonable, I cannot invite the House to take the view that this Amendment falls within the category of Amendments which are reasonable.
§ Mr. Patrick JenkinAs I have put my name to the Amendment, I want to say a few words in reply to the case 101 advanced by the Minister without Portfolio. I cannot accept the a fortiori argument. It may well have been right for the purposes of Case VII that certain limitations be placed on the carry forward of losses because that, after all, was a limited extension into the capital gains taxation. The Bill makes a very much more substantial incursion into it. Therefore, something which might have been de minimis as it concerned Case VII could, in the limited number of cases to which my hon. Friend the Member for Nottingham, South (Mr. William Clark) referred, give rise to a very considerable injustice.
If it is right in the case of a company reconstruction to carry forward revenue losses, to carry forward unexpended capital allowances, and to carry forward various other matters to which the Minister without Portfolio referred, why is it not right that the reconstructed company should carry forward unrelieved capital losses?
May I remind the Minister without Portfolio of the words used by the Chancellor of the Exchequer in his Budget speech when justifying the extension of capital gains taxation to companies:
I propose that capital gains realised by companies—and this applies to both short-term and long-term gains—shall be subject to corporation tax at the corporation tax rate. A company is a continuing association which has as its main purpose making profits; whether those profits arise as trading income or as capital gains is immaterial, and I think that it is right that they should be taxed at the same rate."—[OFFICIAL REPORT, 6th April, 1965 Vol. 709, cc. 250–51.]
§ If that was his view when he justified the taxation of capital gains, why does not the same argument apply to giving relief against capital losses? It is utterly inconsistent, and I do not think that the Minister without Portfolio should be allowed to get away with his very weak and unconvincing argument.
§ Mr. William ClarkBy leave of the House, may I say that the Minister without Portfolio did not attempt to answer the point concerning a reconstructed company which has invested its plough-back profits and which wants to construct a new factory. If in the realisation of that ploughback investment it makes a capital loss, why should it not be allowed to carry the loss forward? The Chancellor has clearly said that for companies revenue losses are exactly the same as capital losses, and vice versa. If it is right to carry forward revenue losses, it is equally right to carry forward capital losses.
In view of the lamentable reply of the Minister without Portfolio, who, I am absolutely certain, has not moved one inch towards eliminating this injustice, I hope that my right hon. and hon. Friends will divide against the Amendment.
§ Question put, That those words be there inserted in the Bill:—
§ The House divided: Ayes 250, Noes 272.
105| Division No. 249.] | AYES | [6.57 p.m. |
| Agnew, Commander Sir Peter | Brooke, Rt. Hn. Henry | Crowder, F. P. |
| Alison, Michael (Barkston Ash) | Brown, Sir Edward (Bath) | Curran, Charles |
| Allason, James (Hemel Hempstead) | Bruce-Gardyne, J. | Dalkeith, Earl of |
| Amery, Fit. Hn. Julian | Bryan, Paul | Dance, James |
| Anstruther-Gray, Rt. Hn. Sir W. | Buchanan-Smith, Alick | Davies, Dr. Wyndham (Perry Barr) |
| Astor, John | Bullus, Sir Eric | d'Avigdor-Goldsmid, Sir Henry |
| Atkins, Humphrey | Burden, F. A. | Dean, Paul |
| Awdry, Daniel | Butcher, Sir Herbert | Deedes, Rt. Hn. W. F. |
| Baker, W. H. K | Campbell, Gordon | Digby, Simon Wingfield |
| Barber, Rt. Hn. Anthony | Carlisle, Mark | Dodds-Parker, Douglas |
| Barlow, Sir John | Carr, Rt. Hn. Robert | Doughty, Charles |
| Batsford, Brian | Cary, Sir Robert | Douglas-Home, Rt. Hn. Sir Alec |
| Bell, Ronald | Channon, H. P. G. | Drayson, G. B. |
| Bennett, Sir Frederic (Torquay) | Chataway, Christopher | du Cann, Rt. Hn. Edward |
| Berry, Hn. Anthony | Clark, William (Nottingham, S.) | Eden, Sir John |
| Bessell, Peter | Clarke, Brig, Terence (Portsmth, W.) | Elliot, Capt. Walter (Carshalton) |
| Biffen, Johr | Cole, Norman | Elliott, R. W. (N'c'tle-upon-Tyne, N.) |
| Biggs-Davison, John | Cooke, Robert | Emery, Peter |
| Birch, Rt. Hn. Nigel | Cooper, A. E. | Errington, Sir Eric |
| Black, Sir Cyril | Cooper-Key, Sir Neill | Farr, John |
| Blaker, Peter | Cordle, John | Fell, Anthony |
| Box, Donald | Corfield, F. V. | Fisher, Nigel |
| Boyd-Carpenter, Rt. Hn. J | Costain, A. P. | Fletcher-Cooke, Charles (Darwen) |
| Boyle, Rt. Hn. Sir Edward | Courtney, Cdr. Anthony | Fletcher-Cooke, Sir John (S'pton) |
| Braine, Bernard | Craddock, Sir Beresford (Spelthorne) | Foster, Sir John |
| Brewis, John | Crawley, Aidan | Fraser, Rt. Hn. Hugh (St'fford & Stone) |
| Brinton, Sir Tatton | Crosthwaite-Eyre, Col. Sir Oliver | Fraser, Ian (Plymouth, Sutton) |
| Galbraith, Hn. T. G. D. | Lambton, Viscount | Redmayne, Rt. Hn. Sir Martin |
| Gammans, Lady | Langford-Holt, Sir John | Rees-Davies, W. R. |
| Gibson-Watt, David | Legge-Bourke, Sir Harry | Renton, Rt. Hn. Sir David |
| Giles, Rear-Admiral Morgan | Lewis, Kenneth (Rutland) | Ridley, Hn. Nicholas |
| Gilmour, Ian (Norfolk, Central) | Litchfield, Capt. John | Ridsdale, Julian |
| Gilmour, Sir John (East Fife) | Lloyd, Rt. Hn. Geoffrey (Sut'n C'dfield) | Roberts, Sir Peter (Heeley) |
| Glover, Sir Douglas | Lloyd, Ian (P'tsm'th, Langstone) | Rodgers, Sir John (Sevenoaks) |
| Glyn, Sir Richard | Lloyd, Rt. Hn. Selwyn (Wirral) | St. John-Stevas, Norman |
| Godber, Rt. Hn. J. B. | Longden, Gilbert | Scott-Hopkins, James |
| Goodhart, Philip | Loveys, Walter H. | Sharples, Richard |
| Goodhew, Victor | Lubbock, Eric | Shepherd, William |
| Gower, Raymond | Lucas, Sir Jocelyn | Sinclair, Sir George |
| Grant, Anthony | McAdden, Sir Stephen | Smith, Dudley (Br'ntf'd & Chiswick) |
| Grant-Ferris, R. | MacArthur, Ian | Smyth, Rt. Hn. Brig. Sir John |
| Griffiths, Peter (Smethwick) | Mackenzie, Alasdair (Ross & Crom'ty) | Soames, Rt. Hn. Christopher |
| Grimond, Rt. Hn. J. | McLaren, Martin | Spearman, Sir Alexander |
| Gurden, Harold | Macleod, Rt. Hn. Iain | Stainton, Keith |
| Hall, John (Wycombe) | McNair-Wilson, Patrick | Stanley, Hn. Richard |
| Hall-Davis, A. G. F. | Maitland, Sir John | Steel, David (Roxburgh) |
| Hamilton, M. (Salisbury) | Marples, Rt. Hn. Ernest | Stodart, Anthony |
| Harris, Frederic (Croydon, N. W.) | Marten, Neil | Stoddart-Scott, Col. Sir Malcolm |
| Harris, Reader (Heston) | Mathew, Robert | Studholme, Sir Henry |
| Harvey, Sir Arthur Vere (Macclesf'd) | Maude, Angus | Talbot, John E. |
| Harvey, John (Walthamstow, E.) | Maudling, Rt. Hn. Reginald | Taylor, Edward M. (G'gow, Cathcart) |
| Harvie Anderson, Miss | Mawby, Ray | Teeling, Sir William |
| Hastings, Stephen | Maxwell-Hyslop, R. J. | Temple, John M. |
| Hawkins, Paul | Maydon, Lt.-Cmdr. S. L. C. | Thatcher, Mrs. Margaret |
| Hay, John | Meyer, Sir Anthony | Thomas, Sir Leslie (Canterbury) |
| Heald, Rt. Hn. Sir Lionel | Mills, Peter (Torrington) | Thomas, Rt. Hn. Peter (Conway) |
| Heath, Rt. Hn. Edward | Mitchell David | Thompson, Sir Richard (Croydon, S.) |
| Hendry, Forbes | Monro, Hector | Tiley, Arthur (Bradford, W.) |
| Higgins, Terence L. | More, Jasper | Tilney, John (Wavertree) |
| Hiley, Joseph | Morrison, Charles (Devizes) | Turton, Rt. Hn. R. H. |
| Hill, J. E. B. (S. Norfolk) | Mott-Radclyffe, Sir Charles | Tweedsmuir, Lady |
| Hirst, Geoffrey | Munro-Lucas-Tooth, Sir Hugh | Van Straubenzee, W. R. |
| Hobson, Rt. Hn. Sir John | Murton, Oscar | Vaughan-Morgan, Rt. Hn. Sir John |
| Hogg, Rt. Hn. Quintin | Neave, Airey | Vickers, Dame Joan |
| Hopkins, Alan | Nicholson, Sir Godfrey | Walder, David (High Peak) |
| Hordern, Peter | Noble, Rt. Hn. Michael | Walker, Peter (Worcester) |
| Hornby, Richard | Nugent, Rt. Hn. Sir Richard | Walker-Smith, Rt. Hn, Sir Derek |
| Hornsby-Smith, Rt. Hn. Dame P. | Onslow, Cranley | Wall, Patrick |
| Howard, Hn. G. R. (St. Ives) | Orr-Ewing, Sir Ian | Ward, Dame Irene |
| Hunt, John (Bromley) | Osborn, John (Hallam) | Weatherill, Bernard |
| Hutchison, Michael Clark | Osborne, Sir Cyril (Louth) | Wells, John (Maidstone) |
| Iremonger, T. L. | Page, John (Harrow, W.) | Whitelaw, William |
| Irvine, Bryant Godman (Rye) | Page, R. Graham (Crosby) | Williams, Sir Rolf Dudley (Exeter) |
| Jenkin, Patrick (Woodford) | Pearson, Sir Frank (Clitheroe) | Wills, Sir Gerald (Bridgwater) |
| Johnston, Russell (Inverness) | Peel, John | Wise, A. R. |
| Jones, Arthur (Northants, S.) | Percival, Ian | Wolrige-Gordon, Patrick |
| Jopling, Michael | Peyton, John | Woodhouse, Hn. Christopher |
| Joseph, Rt. Hn. Sir Keith | Pickthorn, Rt. Hn. Sir Kenneth | Woodnutt, Mark |
| Kaberry, Sir Donald | Pike, Miss Mervyn | Wylie, N. R. |
| Kerr, Sir Hamilton (Cambridge) | Pitt, Dame Edith | Younger, Hn. George |
| Kershaw, Anthony | Powell, Rt. Hn. J. Enoch | |
| Kimball, Marcus | Price, David (Eastleigh) | TELLERS FOR THE AYES: |
| King, Evelyn (Dorset, S.) | Quennell, Miss J. M. | Mr. Geoffrey Johnson Smith and |
| Kitson, Timothy | Ramsden, Rt. Hn. James | Mr. Francis Pym. |
| Lagden, Godfrey | Rawlinson, Rt. Hn. Sir Peter | |
| NOES | ||
| Abse, Leo | Braddock, Mrs. E. M. | Darling, George |
| Albu, Austen | Bradley, Tom | Davies, G. Elfed (Rhondda, E.) |
| Allaun, Frank (Salford, E.) | Bray, Dr. Jeremy | Davies, Ifor (Gower) |
| Alldritt, Walter | Brown, Hugh D. (Glasgow, Provan) | Davies, S. O. (Merthyr) |
| Allen, Scholefield (Crewe) | Brown, R. W. (Shoreditch & Fbury) | de Freitas, Sir Geoffrey |
| Atkinson, Norman | Buchan, Norman (Renfrewshire, W.) | Delargy, Hugh |
| Bacon, Miss Alice | Buchanan, Richard | Dell, Edmund |
| Bagier, Gordon A. T. | Butler, Herbert (Hackney, C.) | Dempsey, James |
| Barnett, Joel | Butler, Mrs. Joyce (Wood Green) | Diamond, Rt. Hn. John |
| Baxter, William | Callaghan, Rt. Hn. James | Dodds, Norman |
| Beaney, Alan | Carmichael, Neil | Doig, Peter |
| Bellenger, Rt. Hn. F. J. | Castle, Rt. Hn. Barbara | Donnelly, Desmond |
| Bence, Cyril | Chapman, Donald | Driberg, Tom |
| Benn, Rt. Hn. Anthony Wedgwood | Coleman, Donald | Duffy, Dr. A. E. P. |
| Bennett, J. (Glasgow, Bridgeton) | Conlan, Bernard | Dunn, James A. |
| Binns, John | Corbet, Mrs. Freda | Dunnett, Jack |
| Bishop, E. S. | Cousins, Rt. Hn. Frank | Edwards, Rt. Hn. Ness (Caerphilly) |
| Blackburn, F. | Craddock, George (Bradford, S.) | Edwards, Robert (Bilston) |
| Blenkinsop, Arthur | Crawshaw, Richard | English, Michael |
| Boston, Terence | Crosland, Rt. Hn. Anthony | Ennals, David |
| Bottomley, Rt. Hn. Arthur | Crossman, Rt. Hn. R. H. S. | Ensor, David |
| Bowden, Rt. Hn. H. W. (Leics S. W.) | Cullen, Mrs. Alice | Evans, Albert (Islington, S. W.) |
| Boyden, James | Dalyell, Tam | Evans, Ioan (Birmingham, Yardley) |
| Fernyhough, E. | Lewis, Arthur (West Ham, N.) | Roberts, Goronwy (Caernarvon) |
| Fitch, Alan (Wigan) | Lipton, Marcus | Robertson, John (Paisley) |
| Fletcher, Sir Eric (Islington, E.) | Loughlin, Charles | Rodgers, William (Stockton) |
| Fletcher, Ted (Darlington) | Mabon, Dr. J. Dickson | Rogers, George (Kensington, N.) |
| Fletcher, Raymond (Ilkeston) | McBride, Neil | Rose, Paul, B. |
| Floud, Bernard | McCann, J. | Ross, Rt. Hn. William |
| Foley, Maurice | MacColl, James | Rowland, Christopher |
| Foot, Sir Dingle (Ipswich) | MacDermot, Niall | Sheldon, Robert |
| Foot, Michael (Ebbw Vale) | McGuire, Michael | Shinwell, Rt. Hn. E. |
| Ford, Ben | McInnes, James | Shore, Peter (Stepney) |
| Fraser, Rt. Hn. Tom (Hamilton) | McKay, Mrs. Margaret | Short, Rt. Hn. E. (N'c'tle-on-Tyne, C.) |
| Galpern, Sir Myer | Mackenzie, Gregor (Rutherglen) | Short, Mrs. Renée (W'hampton, N. E.) |
| Garrett, W. E. | Mackie, John (Enfield, E.) | Silkin, John (Deptford) |
| Ginsburg, David | MacMillan, Malcolm | Silkin, S. C. (Camberwell, Dulwich) |
| Gourlay, Harry | Mahon, Peter (Preston, S.) | Silverman, Julius (Aston) |
| Greenwood, Rt. Hn. Anthony | Mahon, Simon (Bootle) | Silverman, Sydney (Nelson) |
| Gregory, Arnold | Mallalieu, E. L. (Brigg) | Skeffington, Arthur |
| Grey, Charles | Mallalieu, J. P. W. (Huddersfield, E.) | Slater, Mrs. Harriet (Stoke, N.) |
| Griffiths, David (Rother Valley) | Manuel, Archie | Slater, Joseph (Sedgefield) |
| Griffiths, Rt. Hn. James (Llanelly) | Mapp, Charles | Small, William |
| Griffiths, Will (M'chester, Exchange) | Marsh, Richard | Solomons, Henry |
| Gunter, Rt. Hn. R. J. | Mason, Roy | Soskice, Rt. Hn. Sir Frank |
| Hale, Leslie | Maxwell, Robert | Spriggs, Leslie |
| Hamilton, James (Bothwell) | Mellish, Robert | Steele, Thomas (Dunbartonshire, W.) |
| Hamilton, William (West Fife) | Mendelson, J. J. | Stewart, Rt. Hn. Michael |
| Hamling, William (Woolwich, W.) | Mikardo, Ian | Stonehouse, John |
| Hannan, William | Millan, Bruce | Stones, William |
| Harper, Joseph | Miller, Dr. M. S. | Strauss, Rt. Hn. G. R. (Vauxhall) |
| Harrison, Walter (Wakefield) | Milne, Edward (Blyth) | Stross, Sir Barnett (Stoke-on-Trent, C.) |
| Hart, Mrs. Judith | Molloy, William | Swain, Thomas |
| Hattersley, Roy | Monslow, Walter | Swingler, Stephen |
| Hayman, F. H. | Morris, Alfred (Wythenshawe) | Symonds, J. B. |
| Hazell, Bert | Morris, John (Aberavon) | Taverne, Dick |
| Heffer, Eric S. | Murray, Albert | Taylor, Bernard (Mansfield) |
| Henderson, Rt. Hn. Arthur | Neal, Harold | Thomas, George (Cardiff, W.) |
| Herbison, Rt. Hon. Margaret | Newens, Stan | Thomas, Iorwerth (Rhondda, W.) |
| Hobden, Dennis (Brighton, K'town) | Noel-Baker, Rt. Hn. Philip (Derby, S.) | Thornton, Ernest |
| Holman, Percy | Norwood, Christopher | Tinn, James |
| Howarth, Harry (Wellingborough) | Oakes, Gordon | Tomney, Frank |
| Howarth, Robert L. (Bolton, E.) | Ogden, Eric | Tuck, Raphael |
| Howell, Denis (Small Heath) | O'Malley, Brian | Urwin, T. W. |
| Oram, Albert E. (E. Ham, S.) | Varley, Eric G. | |
| Hoy, James | Orbach, Maurice | Wainwright, Edwin |
| Hughes, Cledwyn (Anglesey) | Orme, Stanley | Walden, Brian (All Saints) |
| Hughes, Emrys (S. Ayrshire) | Oswald, Thomas | Walker, Harold (Doncaster) |
| Hughes, Hector (Aberdeen, N.) | Owen, Will | Wallace, George |
| Hunter, Adam (Dunfermline) | Padley, Walter | Watkins, Tudor |
| Hunter, A. E. (Feltham) | Page, Derek (King's Lynn) | Weitzman, David |
| Hynd, H. (Accrington) | Paget, R. T. | White, Mrs. Eirene |
| Hynd, John (Attercliffe) | Whitlock, William | |
| Irving, Sydney (Dartford) | Palmer, Arthur | Wigg, Rt. Hn. George |
| Jackson, Colin | Pannell, Rt. Hn. Charles | Wilkins, W. A. |
| Janner, Sir Barnett | Pargiter, G. A. | Willey, Rt. Hn. Frederick |
| Jeger, George (Goole) | Park, Trevor (Derbyshire, S.E.) | Williams, Alan (Swansea, W.) |
| Jenkins, Hugh (Putney) | Parker, John | Williams, Clifford (Abertillery) |
| Jenkins, Rt. Hn. Roy (Stechford) | Parkin, B. T. | Williams, Mrs. Shirley (Hitchin) |
| Johnson, Carol (Lewisham, S.) | Pavitt, Laurence | Williams, W. T. (Warrington) |
| Johnson, James (K'ston-on-Hull, W.) | Pearson, Arthur (Pontypridd) | Willis, George (Edinburgh, E.) |
| Jones, Dan (Burnley) | Pentland, Norman | Wilson, Rt. Hn. Harold (Huyton) |
| Jones, J. Idwal (Wrexham) | Perry, Ernest G. | Wilson, William (Coventry, S.) |
| Jones, T. W. (Merioneth) | Price, J. T. (Westhoughton) | Winterbottom, R. E. |
| Kelley, Richard | Probert, Arthur | Woodburn, Rt. Hn. A. |
| Kenyon, Clifford | Pursey, Cmdr. Harry | Woof, Robert |
| Kerr, Mrs. Anne (R'ter & Chatham) | Rankin, John | Wyatt, Woodrow |
| Kerr, Dr. David (W'worth, Central) | Redhead, Edward | Zilliacus, K. |
| Leadbitter, Ted | Rees, Merlyn | |
| Ledger, Ron | Reynolds, G. W. | TELLERS FOR THE NOES: |
| Lever, Harold (Cheetham) | Rhodes, Geoffrey | Mr. George Lawson and |
| Lever, L. M. (Ardwick) | Roberts, Albert (Normanton) | Mr. William Howie. |