HL Deb 14 November 1957 vol 206 cc369-74

4.25 p.m.

THE EARL OF HOME rose to move to resolve, That it is expedient that a Tribunal be established for inquiring into a definite matter of urgent public importance, that is to say, whether there is any justification for allegations that information about the raising of Bank Rate was improperly disclosed to any person, and whether if there was any such disclosure any use was made of such information for the purpose of private gain. The noble Earl said: My Lords, I beg to move the Resolution as it stands under my name on the Order Paper. Your Lordships will recall that these matters to which the Resolution refers arose from certain rumours or innuendoes which suggested that certain persons had foreknowledge of a change that was to be made in the bank rate.

The House will recall the earlier stages, during which it was revealed that the rumours arose from what I might fairly call casual conversations, really tittle- tattle, between persons who could not possibly have had foreknowledge and were merely being wise after the event. After an informal inquiry, which was conducted by my noble and learned friend the Lord Chancellor, my right honourable friend the Prime Minister decided that there was no prima facie case for an investigation. To-day there is no new evidence.

Your Lordships may fairly ask: is there then a change in the situation and why does the Prime Minister now recommend an investigation which he refused before? The answer to that is that lately in another place imputations of a most damaging character have been made against the Chancellor of the Exchequer and Mr. Oliver Poole. In the case of Mr. Poole, who is not a Member of another place, he has no redress open to him. These imputations, as your Lordships know, are of a most serious character, because I think that it is true to say that the Budget and the bank rate occupy a very special place in the public mind. They are in a different category from any other financial operations which are matters of national concern. It is on what amount to charges of a leak of information that my right honourable friend the Chancellor of the Exchequer and Mr. Poole are entitled to ask for a clear and decisive judgment and answer. Therefore, in these circumstances, the Prime Minister decided that there was no alternative but to have an inquiry.

The Tribunal proposed will be set up by the Home Secretary under the Act of 1921. It will be presided over by one of Her Majesty's Judges, assisted by two eminent lawyers. The powers of the Tribunal, in the matters of the attendance of witnesses and production of documents, will be the same as those of the High Court, and they will have at their disposal the services of the Treasury Solicitor. From the Resolution on the Order Paper your Lordships will see that the terms of reference of the Tribunal have been drawn deliberately so as to cover not only the cases of my right honourable friend the Chancellor of the Exchequer and Mr. Poole, but the whole field of what might be called the bank rate incident.

It will be for the Tribunal to judge and decide whom they call, but there is no limit whatever on the evidence that could be called. Such a public inquiry into so serious a matter is not to be undertaken lightly, and I hope that in all the circumstances your Lordships will feel that Her Majesty's Government have acted properly in recognising the right of private individuals, whose honour and honesty have been questioned, to defend their integrity, and the right of the public to be entirely satisfied by the findings of a Tribunal of the highest character and standing. I hope that your Lordships' House will be able to approve unanimously the terms of the Resolution on the Order Paper. I beg to move.

Moved to resolve, That it is expedient that a Tribunal be established for inquiring into a definite matter of urgent public importance, that is to say. whether there is any justification for allegations that information about the raising of Bank Rate was improperly disclosed to any person, and whether if there was any such disclosure any use was made of such information for the purpose of private gain.—(The Earl of Home.)

4.30 p.m.

VISCOUNT ALEXANDER OF HILLSBOROUGH

My Lords, I am obliged to the noble Earl the Leader of the House for the manner in which he has moved this Motion. It is a great pity that this matter of "definite and urgent importance" (in the words of the Motion) should have to be raised as late as November 14, having regard to the actual date on which it became the centre of the stories and gossip which led to the doubts that have arisen. It is fundamental in our history as a Parliamentary institution that anything which seems in any way to touch the integrity or honour of any Member of our Houses should, if necessary, be inquired into at once.

It is not for me at this stage to deal at all with the merits of the case which is to be inquired into; as I said earlier this week. I think it would be wrong to do that. The nature of the Tribunal set up under the National Tribunals Act is such that we should regard everything now connected with it as subject to the proper and respectful use of the term "sub judice"; and that is how we propose to treat it. I think, however, that it was convenient for the noble Earl the Leader of the House to arrange for the postponement of this Motion until this stage in our proceedings to-day, because it has enabled us to see what happened in another place. Among my colleagues in another place (I feel that this should be said) there was a strong feeling that there should perhaps be some widening of the terms of reference. That has been debated in another place. and the Motion has been passed, I believe, on the assurance by Mr. Speaker that the terms of reference could be reckoned to be wide enough to cover all the matters which are likely to arise: and I am reinforced in that view by what the noble Earl the Leader of the House has just said.

I would only add this. Every Government is always liable to have this kind of incident to deal with. It is most important, especially when it is remembered that this matter was general gossip in the City, and was written about in certain organs of the Press, two months ago, that in matters of this kind the action which Her Majesty's Government are now, rightly, taking should be taken at the earliest possible moment. With that final remark, I may say that we accede to the Motion.

LORD REA

My Lords, I should like to support the noble Earl the Leader of the House in hoping that this Motion will go through unanimously in your Lordships' House. I differ slightly from the noble Viscount who leads the Opposition in that I do not consider that this step should have been taken earlier. Circumstances have changed. They were difficult some time ago, and the action taken by the Prime Minister, in conjunction with the noble and learned Viscount on the Woolsack, seemed to be very good action; it is only recent events which have brought the matter to such a pitch that the present arrangements seem to be necessary. I feel that, in one sense, this matter concerns another place much more than it does your Lordships' House, and in that sense I join with the noble Viscount who leads the Opposition in regarding it as very much sub judice. I trust that the Motion will pass unanimously.

On Question, Motion agreed to.

House adjourned at twenty-five minutes before five o'clock.