Lords Sitting of 31 January 1940

Preamble
The House met at half-past three of the clock, The LORD CHANCELLOR On the Woolsack.
Alwyn Terrell Petre, Lord Bishop of Durham—Was (in the usual manner) introduced.
Bernard Oliver Francis, Lord Bishop of Ely—Was (in the usual manner) introduced.

MENTAL DEFICIENCY (SCOTLAND) BILL. [H.L.]
THE SECRETARY OF STATE FOR INDIA AND BURMA (THE MARQUESS OF ZETLAND): My Lords, I beg to introduce a Bill to amend the provisions of the Mental Deficiency and Lunacy (Scotland) Act, 1913, with regard to the duration of the detention of mental defectives in institutions or under guardianship; and to move that it be read a first time.
Moved, That the Bill be now read 1a.—(The Marquess of Zetland.)
On Question, Bill read 1a, and to be printed.

BUSINESS OF THE HOUSE.
THE LORD PRESIDENT OF THE COUNCIL (EARL STANHOPE): My Lords, I beg to move, That Standing Order No. XXXIX he considered in order to its being suspended for this day's sitting.
Moved, That Standing Order No. XXXIX be considered in order to its being suspended for this day's sitting.—(Earl Stanhope.)
On Question, Motion agreed to, and ordered accordingly.

INDIA AND BURMA (MISCELLANEOUS AMENDMENTS) BILL. [H.L.]
Order of the Day for the consideration of Commons Amendments read.
3.39 p.m.
THE MARQUESS OF ZETLAND: My Lords, I beg to move that these Amendments be now considered.
Moved, That the Commons Amendments be now considered.—(The Marquess of Zetland.)
On Question, Motion agreed to.

COMMONS AMENDMENT.
Clause 1, page 1, line 12, leave out from ("means,") to end of line 15, and insert ("any tax on income, so far as that tax is payable by companies, and is a").
THE MARQUESS OF ZETLAND: My Lords, the sole purpose of the Amendments is so to define "Corporation Tax" as to enable an Excess Profits Duty to be imposed under the Bill should that be found necessary. As your Lordships are aware, it has been found necessary in this country quite recently to introduce an Excess Profits Duty. I understand that the Government of India have already announced their intention. I beg to move, therefore, that the Commons Amendments be agreed to.
Moved, That this House doth agree with the Commons in the said Amendment.—(The Marquess of Zetland.)
On Question, Motion agreed to.

COMMONS AMENDMENT.
Page 2, line 9, at end, insert ("and after the definition of? taxation,' there shall be inserted the following definition:
'tax on income' includes a tax in the nature of an Excess Profits Tax").
THE MARQUESS OF ZETLAND: My Lords, I beg to move that this Amendment be agreed to.
Moved, That this House doth agree with the Commons in the said Amendment.—(The Marquess of Zetland.)
On Question, Motion agreed to.

CZECHO-SLOVAKIA (FINANCIAL CLAIMS AND REFUGEES) BILL.
Order of the Day for the House to be put into Committee read.
Moved, That the House do now resolve itself into Committee.—(Lord Templemore.)
On Question, Motion negatived.
Then, Standing Order No. XXXIX having been suspended, Bill read 3a, and passed.

GAS AND STEAM VEHICLES (EXCISE DUTIES) BILL.
Order of the Day for the Second Reading read.
3.42 p.m.
EARL FORTESCUE: My Lords, this Bill is introduced to give legislative sanction to a Resolution agreed to by the House of Commons on 12th December, 1939, under the Provisional Collection of Taxes Act, 1913, granting a concession in respect of the taxation of gas-propelled vehicles. The adoption of the Resolution enabled the concession to operate from January last, that is, from the beginning of the motor vehicle licensing year. The concession was promised, together with others which do not fall to be considered in connection with an Excise Bill, but which in fact either have already been or will very shortly be implemented, on the occasion of an announcement by the Secretary for Mines on the 8th November, 1939, regarding the success of the researches of a committee of scientists and road operators set up by the Government to examine the problem of the utilisation of producer-gas for the propulsion of road vehicles.
The Secretary for Mines said that the committee
"have carried out exhaustive work in the laboratory and under commercial conditions on the road, and I am glad to say that their persistent efforts have now resulted in a design of producer which can be recommended for manufacture. The Fuel Research Station's work has shown that low volatile anthracites and certain low temperature cokes are suitable fuels and research is proceeding in the hope of widening the range of fuel. In order to stimulate the use of these fuels the Government have decided that various uncertainties in the general and fiscal position should be removed."
The present Bill implements the Government's undertaking regarding the fiscal position and provides, in effect, for the removal of the burden of extra taxation which might be incurred in respect, first, of the weight of gas plant or containers when added to goods vehicles which are taxed on unladen weight, or, secondly, of the provision of a trailer to carry the plant or containers. It deals only with goods vehicles, since passenger vehicles are taxed on seating capacity or horse power and are not subject to trailer duty.
So far as the first point is concerned, subsection (2) of Clause 1 proposes to

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allow a reduction when computing unladen weight for taxation purposes of half a ton for vehicles weighing over 12 cwt. but not more than three tons, three-quarters of a ton for vehicles over three but not over six tons, and one ton for vehicles over six tons. These allowances are proposed as reasonable in the light of technical advice to cover the weight of apparatus, whether in the form of producer plant or cylinders, which may be required on the full range of goods vehicles. On the second point, subsection (3) provides that liability for trailer duty shall not be incurred by the use of a trailer for the sole purpose of carrying the means of gas production for the vehicle. This obviates the payment of from £10 to £20 additional tax according to the unladen weight of the drawing vehicle.
Subsections (4) and (6) apply the relevant provisions to all forms of gas propulsion which have so far been developed and which will now be covered by the new definition of "gas" which replaces the existing definition of "coal gas." Subsection (5) inserts intermediate steps in the taxation scale between 12 cwt. and 2 tons equivalent to those in the scale for petrol vehicles. The existing scale for steam and gas vehicles was introduced by the Finance Act of 1933, when gas propulsion for road vehicles had not gone beyond the early experimental stage and contained no gradations below 2 tons, as lighter vehicles of these types were not at that time in use. The revised scale should encourage the conversion or construction of light vehicles to run on gas. Generally, the Bill ensures that conversion from petrol to gas propulsion will not involve owners in the payment of higher licence duty beg to move.
Moved, That the Bill be now read 2a.—(Earl Fortescue.)
On Question, Bill read 2a.
Then, Standing Order No. XXXIX having been suspended, Committee negatived: Bill read 3a, and passed.

BUSINESS OF THE HOUSE.
3.47 P.m.
LORD SNELL: My Lords, I beg to ask the noble Earl, the Leader of the House, whether he can give us any information about the business of the House for next week.
EARL STANHOPE: My Lords, I am much obliged to the noble Lord for giving me this opportunity. I propose that on Tuesday we should take the Second Reading of the Mental Deficiency (Scotland) Bill, to which we gave a First Reading as our first business to-day. On Wednesday there is a debate on a question by the most reverend Primate the Archbishop of Canterbury, on educational policy, and my noble friend the President of the Board of Education will make, I think, an important statement on that occasion. On Thursday there will be the Committee stage of the Mental Deficiency (Scotland) Bill, and we shall also, I hope, give a First Reading to the Industrial Assurance and Friendly Societies (Emergency Protection from Forfeiture) Bill and the Trade Boards and Road Haulage Wages (Emergency Provisions) Bill, both of which we expect to receive from another place on that day. I am not in a position to say whether the Government will make a general statement on war policy next week, but if so I think it is likely to be made on Thursday. I propose that the House should meet each day at half-past three o'clock.
House adjourned during pleasure.
House resumed.

ROYAL COMMISSION.
The following Bills received the Royal Assent:
Czecho-Slovakia (Financial Claims and Refugees).
India and Burma (Miscellaneous Amendments).
Gas and Steam Vehicles (Excise Duties).
House adjourned at twenty minutes past four o'clock.