HC Deb 26 October 1966 vol 734 cc1153-67
Mr. W. H. K. Baker (Banff)

I beg to move Amendment No. 3, in page 3, line 12, to leave out from 'sums' to 'as' in line 16.

The effect of the Amendment is that the Minister or Ministers would have to come to the House to ask for the necessary cash to keep the Land Commission going in its undertakings. The point is that he would have to come to the House and ask for much smaller sums than those already written into the Bill. The House may consider this a cumbersome method, but we on this side think that, in the present circumstances, this is a necessary procedure. The way in which it would have to be done, of course, is by an affirmative Resolution of the House.

It is significant that our deliberations in Committee on Clause 3 took place on 21st June, 29 days before the inglorious statement by the Prime Minister to the House on 20th July. In effect, what the right hon. Gentleman did that day was to squeeze the squeeze even tighter and, of course, we also got the freeze. Yesterday we debated the implementation of Part IV of the Prices and Incomes Act. It is no wonder that some hon. Gentlemen opposite are somewhat restive. The squeeze and the freeze is unpalatable, but what the Government are trying to do now is to squeeze the freeze of the national economic orange and——

Mr. Speaker

Order. This is interesting, but the hon. Gentleman must come to the Amendment.

Mr. Baker

I apologise, Mr. Speaker, but whether or not hon. Gentlemen opposite like it, according to this Measure, the Government must find £45 million and, in the present state of the nation's finances, that is, to say the least, a difficult job.

If that is not enough, the Government must squeeze the national economic orange again to bring in another £30 million, this to finance the totally irrelevant and unworkable Land Commission Bill. Is this showing a return of confidence to the nation in our economic affairs? Is it the way to return confidence to our overseas friends in these critical days? Should we be giving power to the Government to spend vast sums of money which we can ill afford at a time when we are very much up against it?

The Government are squandering the country's money on a dogmatic irrelevancy, and that is why the Opposition say that, in the present circumstances, the Government should come before the House—that is, if the Measure becomes an Act—and ask for money as it is required and not be allowed such enormous sums as £45 million and £75 million to carry on with.

We are told that about £7 million a year is needed for administration. How much has already been spent—before the Commission has been set up? My hon. Friends and I are supposed to act as watchdogs for the nation and we are not prepared to see this money being spent in this way. We want to know on what it is being spent.

Sir D. Glover

I support the Amendment. The Opposition is indeed the watchdog of the Government. My hon. Friend the Member for Banff (Mr. Baker) need not have used the prefix "we are supposed to be". It is our job and duty to observe what the Government are doing—[Interruption.]—I will treat that interruption from the hon. Member for Buckingham (Mr. Maxwell) with the contempt it deserves. The hon. Gentleman, who has not had the courtesy to attend our deliberations, does not know what we are discussing and is saying something from a comatose position. His remarks, whatever they are, do not even deserve my pausing to make this comment.

Mr. Robert Maxwell (Buckingham)

rose

Sir D. Glover

I will not give way.

Mr. Maxwell

Typical.

Sir D. Glover

If the hon. Gentleman interrupts from a comatose position I will not give way. I will now continue with what I had intended to say——

10.15 p.m.

Mr. Maxwell

Windy !

Mr. Speaker

Order. This debate has so far proceeded in an orderly way. If hon. Members do not wish to listen to it, there is no reason for them to stay.

Mr. Manuel

On a point of order, Mr. Speaker. I understood you to say that this debate has so far gone on in an orderly way. I would draw your attention to the complete rebellion of hon. Members opposite early in the day against your Rulings, and they continued to do so.

Mr. Speaker

I am grateful to the hon. Member for returning to the support he gave me earlier.

Mr. Graham Page

rose

Mr. Speaker

Order. I am not prepared to pursue the points of order we pursued this afternoon.

Mr. Graham Page

I did not intend to refer to that point, Mr. Speaker, but to the words of the hon. Member for Central Ayrshire (Mr. Manuel), who said that we on this side had rebelled against your Rulings. We have done nothing of the sort.

Mr. Speaker

Order. We are not going to have an inquest on what went on earlier today.

Sir D. Glover

I accept entirely that we are not to have an inquest on the points of order raised earlier in the debate; I only wish that we were holding an inquest on this Bill——

Mr. Rippon

We are.

Sir D. Glover

If this House of Commons has a responsibility of trying to protect the individual citizen and the individual taxpayer, of guiding the nation and seeing that the collection and disbursement of money is done in a sane and sensible manner, it has the right to demand that the money it votes will be placed in the hands of those who understand the Measure under which they will disburse that money. Nothing so far, on Second Reading, in Standing Committee or now on Report has convinced me that the Minister or the Parliamentary Secretary understands anything like the implications and ramifications that will become law if this Bill later gets its Third Reading.

Without this Amendment, the House would be asked to provide an initial sum of £45 million, with the probability of another £30 million—£75 million in all. In 1947 we had another very complicated Measure, which was found to be unworkable. Even from the other side of the House I have heard very few hon. Members who would protect or defend the ramifications of that long-deceased Measure. We are now dealing with a Bill which is even more complicated, even less clear——

Mr. Manuel

Deal with the Amendment.

Sir D. Glover

I am dealing with the Amendment. We are dealing with a Bill with far greater ramifications, and which is drawn in a much more woolly fashion and is far more uncertain in its effects on the ordinary citizen. Once we have voted the money by which the Measure can be operated the House will have lost control of the workings of the Measure. I therefore support my hon. Friend when he says that we should not allow all this money to be voted at this time, but should demand that when the Bill becomes an Act the Government should come here when they find they need money in smaller sums, and seek an affirmative Resolution. The House would then keep some control over what went on under what would then be the Act.

Unless the Amendment is accepted, we are being asked to provide, initially, £45 million to buy land, we know not where and, at this moment of time, we are being asked to place that money in the hands of a man, we know not whom. it certainly will not be the right hon. Gentleman. I understand that once he gets this great mausoleum on the Statute Book he is immediately to be put inside it and buried. This is his swan-song; he is committing hara-kari. The moment Parliament says that this Bill has received the Royal Assent the right hon. Gentleman ceases to be a Minister—and what a memorial he will have!

The right hon. Gentleman who will be responsible for the administration of this Measure has not had the courtesy to come to the House to listen to our debates. He is asking that Parliament should give him £45 million, rising to £75 million, to deal with problems which everyone throughout our debates has made quite clear cannot be understood, even by learned silks. Learned silks are desperately worried about how this Bill will operate in practice.

Leaving aside all the ideological differences between the two sides of the House, the smallest piece of common wisdom that this House could show would be to keep control of the financial implications of the Bill much more intimately in its hands so that if the fears of this side of the House are borne out in practice the House will be able to say, "This money is being wastefully expended and we shall not grant approval to the next affirmative Order."

Mr. W. O. J. Robinson

rose

Sir D. Glover

No. I shall not give way. It seems only common prudence that this House as its bounden duty should keep far more control of the financial implications of the Bill. For that reason I hope that the Minister and the House will accept this Amendment.

Mr. Rippon

I hope that the Minister will be disposed to give us some more information about the finances of this Measure. I am sure he must agree that my hon. Friends must be right in saying that in the present state of the economy there is very little prospect of justifying expenditure of the order of £45 million to £75 million. According to subsection (6) no Order can be made before it has been laid before the Commons. We are saying that it would be much more realistic not to put in any figure but for the Government to have to come to the House in due course for such sums of money as the Chancellor of the Exchequer may be disposed to allow the Minister to have.

I hope the Minister will take this opportunity of telling us what he has refused to tell us so far—what the yield of the levy will be and if any moneys are expended under the Bill what return he expects for them, what reduction of Corporation Tax and other taxes already borne by the wretched subjects of Her Majesty there may be. I hope he will also take the opportunity to tell us something more of the proportion of these sums which he expects to be absorbed simply by the cost of administration. A great many people feel certain that the estimates of sums of money which the Minister has so far suggested will be expended on administration are far too low.

It is quite ludicrous to imagine that this Measure will be administered by a staff of only 2,000 civil servants. When people say that it will take up the time of 2,000 civil servants they are utterly underestimating the burden on the administration. If the Government are to try to operate the Bill at any sort of scale of the order of millions of pounds the Minister will find that very much larger staffs will be required. We should have some assurances from the Minister on the cost of administration.

What estimate has the Minister made of the demands which will be made on the national labour force to cope with the Bill? If the Government proceed to implement the Measure to any great extent when it is on the Statute Book, regard will have to be paid, not only to the number of civil servants who will have to be employed, but also to the number of people in the learned professions, in estate agents' offices, and in valuers' and surveyors' offices.

Has the Minister made any estimate of the number of millions of man hours which will be spent in considering the number of transactions he has in mind in the first year or so of the operation of the Bill? I hope that at the earliest opportunity the Minister will give us some idea of when he expects to come forward with any Order, how much money will be employed on administration, how much has already been spent, whether he has any reason to change his views on the number of civil servants who will be employed on administering the Measure, and whether he is now able to tell us, as he should do before the Bill passes from this stage, what he estimates the net yield from the Measure will be.

Mr. W. O. J. Robinson

I intervene now only because I was not able to persuade the hon. Member for Ormskirk (Sir D. Glover) to give way to me. I cannot understand the Amendment, purely on the basis of the question of Parliamentary control. I have here the precedent of an Act passed under a Conservative Administration. I was not here at the time. The precedent is Section 9 of the Housing Act, 1964, which deals with advances by the Secretary of State to the Housing Corporation. That Section is almost identical with this Clause. Under the Bill the amount of advances which can be made at any one time is £45 million. Under the 1964 Act the amount is £50 million. The aggregate amount under this Bill is £75 million. Under the 1964 Act it is £100 million.

Mr. Jeremy Thorpe (Devon, North)

I hope that the hon. Member for Walthamstow, East (Mr. W. O. J. Robinson) will forgive me if I do not follow him, because I am not really concerned with what may or may not have been done by a Conservative Government. I am more interested in the subject before the House. Whether the Clause is right or wrong, the House will generally agree that it is an expensive provision. Very large sums of money are involved. The Clause is rather ambiguously drawn. I take it that what is meant by The aggregate amount outstanding by way of principal is not the outstanding amount which might at any time be granted but is the total sum which, under the provisions of the Bill, could at any time be granted. I hope that the Parliamentary Secretary will confirm that that is the correct interpretation, because it is a rather unusual way of quoting money.

Obviously this matter must be regarded as important by the Government, because this is being done at a time of great financial stringency. Only 24 hours ago the Leader of the House was justifying certain provisions which many people regard as being oppressive on trade unions. As this provision is brought forward at a time of economic stringency, it is obvious that the Government regard it as very important. It seems to be some indication of the Government's vagueness about the sum of money that they want that they ask for £45 million but then say that their estimates could be wrong to such an extent that they would like an extra £30 million if the occasion demands it. They presumably hope that by having this Clause they will not have to present a Supplementary Estimate; they will not have to go through the normal procedure of satisfying the Treasury and the relevant Departments; and they will not have to run the gauntlet of the Select Committee on Estimates. They will ask for £45 million. Then, if they find that they have blown it rather quicker than they had thought, which will probably be the case, they will have an open-ended subsidy of up to £30 million. This is an extraordinary way of asking the House for money. However, it is true that the draft Order must be laid before the House.

To reply shortly to the short speech made by the hon. Member for Walthamstow, East, I should have thought that the fact that a Tory Government previously did this was one of the strongest arguments against perpetuating this method. This is an argument which should at least commend itself to the hon. Gentleman. There is no reason why this Labour Government should be conservative in everything: they might make an exception.

10.30 p.m.

Mr. W. O. J. Robinson

I expressed amazement at the inconsistency of hon. Members opposite. Perhaps I ought not to be amazed at it.

Mr. Thorpe

I take the hon. Gentleman's point. I do not think he should be amazed. He shows a delightful and charming naivety which many of us have grown out of. It is refreshing to find it in the House.

This is a most incredible proposal. The Government are asking for £45 million to be granted. It has not been costed. There are no details of how this money is to be used, or for what purpose. It may be that when the Parliamentary Secretary replies he will be able to give us a breakdown. This is a very large sum of money. It is so imprecise in the minds of the Government that they have persuaded the draftsmen to provide for this sum to be increased by nearly two-thirds without any necessity of coming to the House for a supplementary estimate but by merely laying a draft order which can be pushed through with the help of the Whips——

Mr. Manuel

The hon. Gentleman in his approach to this question raised by the Amendment is very timid. He has retreated from the party lines. His party was going to take much more than £45 million. The hon. Gentleman is in full retreat from these great philosophies which built up his party, and this departure from those philosophies is what has possibly caused the party's recession into the state that it is in.

Mr. Thorpe

The great difference is that the proposals in those days were carefully costed. [Laughter.] Then why did the Labour Members at the time support those proposals in this House? It was because they were costed; they were realistic. [An HON. MEMBER: "Because they were not costed."] That may be so. There may have been some hon. Members who were hoodwinked into thinking that the whole of the valuation system was carefully inquired into. But if the hon. Member will do a little research and read the reports of some of the speeches when those measures were introduced, he will find that they were considerably more thought out than these. No Minister would have asked for £45 million and at the same time have said, "If we find we are wrong, could we have an extra £30 million later?"

This Measure is introduced by a Minister who is in a state of semi-limbo. In fact, it might be a Parliamentary sweepstake as to who is going into limbo first—the right hon. Gentleman or his Parliamentary Secretary. It might well be a competition to decide who will be the first to retire under the Government's redundancy scheme. This is an abuse of the House, and certainly it is a profligate way of spending public money. It is an attempt to take away Parliamentary control from this House.

Mr. Skeflington

I am sure the House will not expect me at this late hour to deal with all the philosophical overtones particularly from the mover of the Amendment. This matter has been decided twice, in this House on Second Reading and before the people in the country. My duty is to state what would be the effect of the Amendment and to advise the House to reject it.

The mover of the Amendment, so far as his argument was serious—which I took it to be—was expressing the desire to devise some system whereby there would be prudent and wise management of funds which would be at the disposal of the Land Commission. The hon. Gentleman has chosen a singularly ineffective way to do it.

The Amendment would require the Minister to make an Order, subject to affirmative Resolution procedure, for the money out of the Consolidated Fund. In effect, he would have to lay an Order for the whole of the £45 million, the sum carefully calculated to be required as a float for the early years of operation. The Commission would be in possession of that sum which, for some period, it might not require fully to use.

Under existing arrangements, however, the Treasury will make advances to the Commission on a daily basis, as it were. Thus, the money allocated will be prudently and carefully managed by the Treasury, with its skilful management, as is the case with other bodies of a similar character to the Land Commission. Such careful control could not apply under the terms of the Amendment.

The Land Commission should not be subjected to the bureaucratic procedure proposed in the Amendment. It has never been suggested for any other organisation—the New Towns Corporation, for instance. Its relations with the Treasury are on a daily basis as was the case with similar other bodies. To submit the Land Commission to the procedure contained in the Amendment would be bureaucratic in the extreme and would fail to achieve what the hon. Gentleman has in mind—improved management—putting aside for the moment the doctrinal overtones of his speech.

The right hon. and learned Member for Hexham (Mr. Rippon) asked a number of questions, some of which do not arise out of the Amendment. This is a float to the Commission. We expect that the Commission's operations over a period will be at least self-balancing and in due course that it will make substantial sums in hand. We estimate that the levy in a full year will have a return of about £80 million. For the reasons given during discussion on the Financial Resolution, I cannot give him a more precise figure. I hope the House will agree that the Amendment would have a bureaucratic and inhibiting effect and will reject it.

Question put, That the words proposed to be left out stand part of the Bill:—

The House divided: Ayes 191, Noes 116.

Division No. 184.] AYES [10.38 p.m.
Abse, Leo Eadie, Alex Kelley, Richard
Albu, Austen Edwards, Robert (Bilston) Kenyon, Clifford
Allaun, Frank (Salford, E.) Edwards, William (Merioneth) Kerr, Russell (Feltham)
Alldritt, Walter Ellis, John Lawson, George
Allen, Scholefield English, Michael Leadbitter Ted
Anderson, Donald Ennals, David Lewis, Ron (Carlisle)
Armstrong, Ernest Ensor, David Lipton, Marcus
Atkins, Ronald (Preston, N.) Evans, Ioan L. (Birm'h'm, Yardley) Lomas, Kenneth
Atkinson, Norman (Tottenham) Faulds, Andrew Loughlin, Charles
Bacon, Rt. Hn. Alice Femyhough, E. Mabon, Dr. J. Dickson
Bagier, Gordon A. T. Fitch, Alan (Wigan) McCann, John
Beaney, Alan Fitt, Gerard (Belfast, W.) MacColl, James
Bence, Cyril Fletcher, Raymond (Ilkeston) Macdonald, A. H.
Bennett, James (G'gow, Bridgeton) Fletcher, Ted (Darlington) Mackenzie, Gregor (Rutherglen)
Binns, John Floud, Barnard Mackintosh, John P.
Blackburn, F. Foot, Michael (Ebbw Vale) McMillan, Tom (Glasgow, C.)
Boardman, H. Ford, Ben MacPherson, Malcolm
Booth, Albert Forrester, John Manuel, Archie
Boyden, James Fowler, Gerry Mapp, Charles
Braddock, Mrs. E. M. Galpern, Sir Myer Marquand, David
Bradley, Tom Gardner, Tony Maxwell, Robert
Brooks, Edwin Garrett, W. E. Mendelson, J, J.
Brown, Hugh D. (G'gow, Provan) Garrow, Alex Millan, Bruce
Buchan, Norman Gourlay, Harry Miller, Dr. M. S.
Buchanan, Richard (G'gow, Sp'burn) Gray, Dr. Hugh (Yarmouth) Milne, Edward (Blyth)
Butler, Mrs. Joyce (Wood Green) Gregory, Arnold Mitchell, R. C. (S'th'pton, Test)
Cant, R. B. Grey, Charles (Durham) Morgan, Elystan (Cardiganshire)
Carmichael, Neil Griffiths, David (Rother Valley) Morris, John (Aberavon)
Carter-Jones, Lewis Hale, Leslie (Oldham, W.) Moyle, Roland
Coe, Denis Hamilton, James (Bothwell) Neal, Harold
Coleman, Donald Hamilton, William (Fife, W.) Newens, Stan
Concannon, J. D. Hannan, William Noel-Baker, Rt, H n. Philip (Derby, S.)
Corbet, Mrs. Freda Harper, Joseph Qakes, Gordon
Craddock, George (Bradford, S.) Harrison, Walter (Wakefield) Ogden, Eric
Crawshaw, Richard Haseldine, Norman O'Malley, Brian
Crosland, Rt. Hn. Anthony Hazell, Bert Orbach, Maurice
Crossman, Rt. Hn. Richard Heffer, Eric S. Orme, Stanley
Cullen, Mrs. Alice Henig, Stanley Oswald, Thomas
Dalyell, Tam Hooley, Frank Owen, Dr. David (Plymouth, S'tn)
Davidson, Arthur (Accrington) Horner, John Owen, Will (Morpeth)
Davies, Dr. Ernest (Stretford) Houghton, Rt. Hn. Douglas Palmer, Arthur
Davies, G. Elfed (Rhondda, E.) Howarth, Robert (Bolton, E.) Parkyn, Brian (Bedford)
Davies, Robert (Cambridge) Howie, W. Pearson, Arthur (Pontypridd)
Delargy, Hugh Hoy, James Pentland, Norman
Dempsey, James Hughes, Emrys (Ayrshire, S.) Perry, George, H. (Nottingham, S.)
Dewar, Donald Hughes, Roy (Newport) Price, Christopher (Perry Barr)
Dickens, James Hunter, Adam Price, William (Rugby)
Dobson, Ray Hynd, John Probert, Arthur
Doig, Peter Janner, Sir Barnett Rankin, John
Dunn James A. Johnson, James (K'ston-on-Hull, W.) Rhodes, Geoffrey
Dunnett, Jack Jones, Dan (Burnley) Roberts, Goronwy (Caernarvon)
Dunwoody, Mrs. Gwyneth (Exeter) Jones, J. Idwal (Wrexham) Roberts, Gwilym (Bedfordshire, S.)
Dunwoody Dr. John (F'th & C'b'e)
Robertson, John (Paisley) Small, William Whitlock, William
Robinson, W. O. J. (Walth'slow, E.) Snow, Julian Willey, Rt. Hn. Frederick
Rodgers, William (Stockton) Spriggs, Leslie Williams, Alan (Swansea, W.)
Rose, Paul Summerskill, Hn. Dr. Shirley Willis, George (Edinburgh, E.)
Ross, Rt. Hn. William Swingler, Stephen Wilson, William (Coventry, S.)
Rowland, Christopher (Meriden) Thomas, Iorwerth (Rhondda, W.) Winterbottom, R. E.
Rowlands, E. (Cardiff, N.) Tinn, James Woof, Robert
Sheldon, Robert Varley, Eric G. Zilliacus, K.
Shore, Peter (Stepney) Wainwright, Edwin (Dearne Valley)
Short, Mrs. Renée (W'hampton, N. E.) Watkins, David (Consett) TELLERS FOR THE AYES:
Silkin, Rt. Hn, John (Deptford) Watkins, Tudor (Brecon & Radnor) Mr. Edward Bishop and
Silverman, Julius (Aston) Wells, William (Walsall, N.) Mr. Neil McBride
Skeffington, Arthur Whitaker, Ben
NOES
Alison, Michael (Barkston Ash) Grieve, Percy Neave, Airey
Allason, James (Hemel Hempstead) Gurden, Harold Noble, Rt. Hn. Michael
Astor, John Hall, John (Wycombe) Page, Graham (Crosby)
Atkins, Humphrey (M't'n & M'd'n) Hall-Davis, A. G. F. Pardoe, John
Awdry, Daniel Harrison, Col. Sir Harwood (Eye) Percival, Ian
Baker, W. H. K. Harvie Anderson, Miss Pink, R. Bonner
Batsford, Brian Hastings, Stephen Pounder, Rafton
Birch, Rt. un. Nigel Heseltine, Michael Pym, Francis
Black, Sir Cyril Hiley, Joseph Renton, Rt. Hn. Sir David
Bossom, Sir Clive Hogg, Rt. Hn. Quintin Ridsdale, Julian
Boyd-Carpenter Rt. Hn. John Holland, Philip Rippon, Rt. Hn. Geoffrey
Brinton, Sir Tatton Hooson, Emlyn Roots, William
Bromley-Davenport, Lt. Col. SirWalter Hordern, Peter Rossi, Hugh (Hornsey)
Brown, Sir Edward (Bath) Hutchison, Michael Clark Russell, Sir Ronald
Buchanan-Smith, Alick (Angus, N&M) Jenkin, Patrick (Woodford) Shaw, Michael (Sc'b'gh & Whitby)
Burden, F. A. Johnston, Russell (Inverness) Sinclair, Sir George
Campbell, Gordon Joseph, Rt. Hn. Sir Keith Smith, John
Carlisle, Mark Kaberry, Sir Donald Steel, David (Roxburgh)
Chichester-Clark, R. Kimball, Marcus Summers, Sir Spencer
Clark, Henry King, Evelyn (Dorset, S.) Talbot, John E.
Clegg, Walter Kirk, Peter Taylor, Frank (Moss Side)
Cooke, Robert Knight, Mrs. Jill Thatcher, Mrs. Margaret
Costain, A. P. Lewis, Kenneth (Rutland) Thorpe, Jeremy
Crouch, David Loveys, W. H. Tilney, John
Dance, James MacArthur, Ian van Straubenzee, W. R.
Davidson, James (Aberdeenshire, w.) Mackenzie, Alasdair (Ross& Crom'ty) Wainwright, Richard (Colne Valley)
Dean, Paul (Somerset, N.) McMaster, Stanley Walker-Smith, Rt. Hn. Sir Derek
Dodds-Parker, Douglas Marten, Neil Webster, David
Eden, Sir John Maude, Angus Wells, John (Maidstone)
Errington, Sir Eric Maxwell-Hyslop, R, J. Whitelaw, William
Eyre, Reginald Maydon, Lt.-Cmdr. S. L. C. Wilson, Geoffrey (Truro)
Farr, John Mills, Peter (Torrington) Winstanley, Dr. M. P.
Fisher, Nigel Mills, Stratton (Belfast, N.) Wolrige-Gordon, Patrick
Fortescue, Tim Mitchell, David (Basingstoke) Worsley, Marcus
Foster, Sir John Monro, Hector Wylie, N. R.
Gibson-Watt, David More, Jasper Younger, Hn. George
Gilmour, Sir John (Fife, E.) Morgan, Geraint (Denbigh)
Glover, Sir Douglas Morrison, Charles (Devizes) TELLERS FOR THE NOES:
Gower, Raymond Munro-Lucas-Tooth, Sir Hugh Mr. R. W. Elliott and
Grant-Ferris, R. Murton, Oscar Mr. Anthony Grant.

10.45 p.m.