Sitting of 12 July 1962

Preamble
The House met at half-past Two o'clock
PRAYERS
[Mr. SPEAKER in the Chair]
PRIVATE BUSINESS
  GLASGOW CORPORATION ORDER CONFIRMATION BILL
  Read the Third time and passed.
ORAL ANSWERS TO QUESTIONS
  EDUCATION

    Primary and Secondary Education, North Coventry
    Mr. Edelmanasked the Minister of Education what action he proposes to take in order to meet the demand for primary and secondary education in North Coventry; and whether he will authorise the Coventry local education authority to prepare plans for building a new comprehensive school in the area near Rookery Farm, and to provide increased primary school places at White moor Secondary School which can then be available for primary education.
    The Minister of Education (Sir David Eccles): I have included in the 1963–64 building programme one primary and one secondary school project to provide additional places in the northern part of Coventry. I shall consider the proposal for an instalment of a new school at Rookery Farm with the authority's other submissions for the 1964–65 programme.
    Mr. Edelman: In welcoming that reply, may I ask the Minister to bear in mind that it would be a great pity if the civic, cultural and industrial achievement of the city did not have an educated generation capable of appreciating it? In these circumstances, will he give special attention to the pressing needs of Coventry, which has a high rate
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    of population growth, particularly related to the high birth rate and also to immigration from other parts of the country?
    Sir D. Eccles: I am aware of the special needs and, indeed, of the good work which has been done in Coventry and I will keep the situation closely under consideration.

    Longhorsley Church of England School, Northumberland
    Mr. Owenasked the Minister of Education whether he is aware of the difficulties which affect education services at Longhorsley Church of England school, Northumberland; what steps are being taken to help the school authorities; and whether he will make a statement.
    Sir D. Eccles: The Newcastle Diocesan Education Committee wishes to replace this school by means of a minor project. I shall consider this proposal sympathetically as soon as the necessary resources are available.
    Mr. Owen: Is the Minister really aware of the conditions of this rural school? It has no playground, no facilities for games, lavatory accommodation is very inadequate, and many of the children have to travel a quarter of a mile to the school canteen. Surely, this merits urgent consideration. We are told that it is to be considered in the next review. Can we be told when the next review will take place?
    Sir D. Eccles: I quite agree that this is a school which badly needs replacing and I hope that before too long it will be possible to increase the minor works allocation.

    Nursery School Places, West Midlands
    Mr. Dugdaleasked the Minister of Education whether he is aware of the shortage of nursery school places in the west Midlands; and what proposals he has to make by which this shortage can be overcome.
    Sir D. Eccles: Yes, Sir. There is a demand for additional nursery school plains in many parts of the country but the shortage of women teachers for the primary schools makes it impossible to

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    contemplate increased employment of qualified teachers in nursery schools and classes at the present time.
    Mr. Dugdale: While welcoming the fact that the Minister at least recognises the seriousness of the position, may I ask whether he is not aware that his Answer, which is virtually that he expects to be able to do nothing at all owing to the shortage of teachers, will be received with great regret? Is he aware, for example, that in West Bromwich, with a primary school population of 10,000, there are only 70 nursery school places and that in Wolverhampton, with a primary school population of 15,000, there are only 55 places? Is the Minister aware that with smaller families and a large number of people living in new estates which are isolated, the need for nursery schools is even greater than in the past?
    Sir D. Eccles: I share the regret, but I must put first things first.
    Mrs. White: Is the Minister aware that where a private school was started recently, no fewer than eight trained nursery school teachers volunteered to serve in it who were not prepared to teach in primary schools and that many women who will not take large classes in primary schools would teach in nursery schools?
    Sir D. Eccles: I am not sure about that. I would have to look into it.
    Mr. Stonehouse: Is the right hon. Gentleman aware that there is very great concern in most pants of the west Midlands about the question and also about the delay in implementing the school building programme? Will he undertake to look at the whole question and ascertain what can be done to improve the position?
    Sir D. Eccles: The Question refers to nursery schools, which I cannot at present increase.

    Remedial Education Service
    Mr. G. Thomasasked the Minister of Education which local education authorities provide a remedial education service.
    The Parliamentary Secretary to the Ministry of Education (Mr. Kenneth Thompson): Local education authorities
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    provide special help in many ways for children with learning difficulties If the hon. Member will let me know of any particular aspect which interests him I will look into the matter.

    Training Colleges
    Mr. Boydenasked the Minister of Education how many of the following 20 training colleges which each took fewer than five day students during 1961–62, namely, Shenstone, Gloucester Domestic Science, Hampstead Domestic Science, Bedford, Chelsea, Dart-ford, Nonington and Lady Mabel Physical Training Colleges, Neville's Cross, St. Hild's, Charlotte Mason, Barry, St. Mary's Bangor, Ripon, I. M. Marsh, Southlands, Anstey, Bath Academy, Ilkley, Thornbridge Hall, were inhibited from taking more day students through shortage of teaching staff, and through insufficient teaching accommodation, respectively.
    Sir D. Eccles: The small number of day students at these colleges was due in the main either to geographical location or to the specialist character of the college, or, in some cases, to both.
    Mr. Boyden: Where it is possible to do so, will the right hon. Gentleman ask the colleges to request resident students who are within travelling distance to make way for day students, to enable them to take in more day students on that basis so that more places will be available to the several thousand students who have not yet got places?
    Sir D. Eccles: We are discussing that and other suggestions with the colleges, and they are responding very well in crowding-up with additional day students.
    Mr. Willey: The right hon. Gentleman will remember that about a fortnight ago he said he would consider calling attention to the success of the Trent Park, Southend, experiment. Has he taken any further steps about it?
    Sir D. Eccles: I should require notice of that.
    Mrs. Whiteasked the Minister of Education what response he has had to his recent request for the establishment of more day training colleges for teachers; and what consideration is being

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    given to the suggestion of sandwich courses made by certain representatives of education authorities.
    Sir D. Eccles: A good number of authorities have indicated their willingness to help in establishing temporary day training colleges: some have premises already in mind; others are investigating the possibilities. The necessary decisions will be taken as quickly as possible.
    The suggestion referred to in the second part of the hon. Lady's Question is being included by the National Advisory Council in its urgent consideration of various ways of increasing output from existing training facilities.
    Mrs. White: Will the right hon. Gentleman arrange to publish as soon as possible the names of the authorities which are establishing day training colleges so that intending students and the general public may be aware of them?
    Sir D. Eccles: Yes, Sir; I will, because I think that would encourage others.
    Mr. F. Harris: Will my right hon. Friend bear in mind that Croydon is very anxious indeed to establish a teacher training college?
    Sir D. Eccles: Yes, Sir.

    Teachers (Superannuation)
    Mrs. Whiteasked the Minister of Education if he will now consider making half-time teaching superannuable.
    Sir D. Eccles: This proposal would require legislation and will be kept under review. At present it is doubtful if a majority of teachers would be in favour of it or whether it is an important factor in the decision of married women to return to teaching.
    Mrs. White: Does not the right hon. Gentleman appreciate that this is much the most cogent argument with almost any woman if she wants to return to at least half-time teaching and that it would be a far better incentive than anything else he has offered?
    Sir D. Eccles: Naturally, I look carefully at the cogent arguments, but such evidence as I have shows that this is not a main factor.

    Grammar School Places, Bournemouth
    Mr. Edenasked the Minister of Education what action he will take, following representations made to him by the Eleven Plus Parents' Association, concerning the selection of children for grammar school places in Bournemouth; and if he will make a statement.
    Mr. K. Thompson: In the course of this year's selection process in Bournemouth there have been a number of changes of plan, in the course of which the second part of the tests was first cancelled and later restored for an intermediate group of pupils. It is for the authority to arrange the selection of pupils for secondary education and my right hon. Friend has no grounds for intervening in this case.
    Mr. Eden: Is my hon. Friend aware that since last May the council has taken no fewer than three decisions affecting the method of selection this year? In view of this and of the apparent inability of the council to find a solution to the dilemma of its own creating, do not the strong protests of the parents, which have already been brought to my hon. Friend's attention, constitute sufficient ground for the intervention of my right hon. Friend?
    Mr. Thompson: My right hon. Friend will take account of what has happened this year in considering what advice he ought to give the authority for the conduct of its affairs in future.
    Mr. Willey: But is the hon. Gentleman aware that this strong feeling is not confined to Bournemouth and that it is general throughout the country? Surely what is needed is a comprehensive re-organisation of secondary education, and the sooner it is done, the better?
    Mr. Thompson: That may or may not be so, but the Question relates to Bournemouth.
    Mr. Eden: Is not my hon. Friend aware that the parents of the children were under the impression initially that they would go to a grammar school and that I am assured that there are ample grammar school places available for them and that the headmasters are prepared to take them should they be required to do so?
    Mr. Thompson: I am aware of those considerations, but the fact is that the authority has tried, by offering the pupils an opportunity to take the second part of the test, to put right the confusion resulting from its earlier decision.
    Dr. King: Is the hon. Gentleman aware that the Bournemouth authority awarded a number of places to children by its method of selection and then claimed that it had not grammar school places for them and is now asking them to sit an examination again? Does he not think this serious enough to warrant intervention by the Minister?
    Mr. Thompson: That aspect of the matter was covered by my first supplementary answer.
    Mr. Eden: On a point of order, Mr. Speaker. I beg to give notice that either I or my hon. Friend the Member for Bournemouth, East and Christchurch (Mr. Cordle) will seek your leave to raise the Whole matter on the Adjournment at the earliest possible opportunity.

    Teacher Trainees
    Mr. D. Smithasked the Minister of Education if he has yet decided to implement the idea of short service commissions for teacher trainees; and if he will make a statement.
    Sir D. Eccles: I have asked for the views of the National Advisory Council on this suggestion.
    Mr. Smith: Will my right hon. Friend be able to indicate before the Summer Recess what his decision will be on this subject? Will he also bear in mind the rumours which are now circulating that groups of teachers are planning to impose half-day attendances for younger children in the autumn if the staffing position does not improve?
    Sir D. Eccles: I cannot give a decision until I have had the recommendations of the National Advisory Council and considered them. I know that in many primary schools there are staffing difficulties, because this is the year of intermission when we are not getting a full output from the colleges.

    Educational Research
    Mr. D. Smithasked the Minister of Education if he is satisfied with the degree of co-ordination in the educational
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    research fields at the present time; and if he will consider steps to improve the dissemination of the results obtained.
    Sir D. Eccles: One of the functions of the new branch in my Department is to help with such co-ordination. I agree that there is need to make the results of research better known and I am encouraging the National Foundation for Educational Research to extend its present arrangements.

    Teachers (Supply)
    Mr. Wileyasked the Minister of Education whether he will make a statement on the recommendations of the National Advisory Council on the Training and Supply of Teachers about the immediate steps which might have to be taken to alleviate the shortage of teachers.
    Sir D. Eccles: It is too early to make a statement and the Chairman of the Council is coming to discuss the Council's recommendations with me.
    Mr. Wiley: While I appreciate the right hon. Gentleman's difficulty about making a statement at the moment, may I ask whether he will assure the House that if the Council says that there is a requirement for further places in the training colleges he will take steps immediately, before the next academic year, doing his utmost to ensure that the places are provided?
    Sir D. Eccles: Obviously, this is one of a very large number of questions which I wish to discuss with the Chairman to see what we can best do.

    Business and Management Education
    Mr. Walkerasked the Minister of Education whether he will take powers to establish a central library containing publications from throughout the world upon subjects related to business and management education.
    Sir D. Eccles: I agree with my hon. Friend that adequate provision of books on these subjects is very important. The libraries of the British Institute of Management and other bodies are already well stocked and I believe that

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    it would be better to develop these facilities rather than to set up a new central library under my Department.
    Mr. Walker: Is my right hon. Friend aware that, in spite of the progress made in this sphere of education over the last two years, this country is considerably behind Western Germany and the United States and, therefore, many of the publications in this branch of education have been published in those countries? Will he bring to the attention of those who have these libraries the need to secure those publications from Western Germany and the United States?
    Sir D. Eccles: I certainly will encourage the extension of these libraries The colleges of advanced technology and other technical colleges also have libraries. There may well be a case for a translation service.
    Mr. Walkerasked the Minister of Education whether he will sponsor a conference upon business and management education to take place within the United Kingdom and to which he will invite leading experts and tutors in business education from throughout the world.
    Sir D. Eccles: My hon. Friend will be glad to hear that the British Institute of Management is planning a conference on these lines to take place early next year. I welcome this initiative.
    Mr. Walker: While I welcome this news, may I ask my right hon. Friend to ensure that every endeavour is made to give maximum publicity to the findings and results of the conference?
    Sir D. Eccles: Yes, Sir; I will.

    Teachers (Pensions)
    Mr. E. L. Mallalieuasked the Minister of Education if he will now make a statement about the pensions of retired teachers, particularly the mast elderly, which have fallen in value owing to the increased cost of living since they were earned.
    Sir D. Eccles: Teachers' pensions are increased under Pensions (Increase) Acts, which apply to many kinds of public servants, including teachers, and are the
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    responsibility of my right hon. and learned Friend, the Chancellor of the Exchequer, who will shortly be making a statement.
    Mr. Mallalieu: Is it not a fact that the older the retired teacher is the greater is the discrepancy between the real value of his pension and its real value when it was given? Is not the Minister aware that teachers today regard it as a matter of conscience to see that some sort of justice is brought about for the older retired people, and could not the pensions be now joined, at least, to the Burnham Scale increases when they take place?
    Sir D. Eccles: That opens a very large question, but the pensions of public servants must all be treated on the same level.
    Sir G. Nicholson: Is my right hon. Friend aware that, in common with, I am sure, all other Members of Parliament, some of the most pathetic letters I get are from these retired teachers, and that it weighs heavily on our individual and collective consciences that these people should be suffering, after scores of years of not very well paid service of a most disinterested nature? Will he bear that in mind when talking with his right hon. and learned Friend?
    Sir D. Eccles: I have the fullest sympathy with what my hon. Friend has said, and I ask him to await the statement which my right hon. and learned Friend will very shortly make.
    Mr. Wade: Would not the Minister agree that there are many very serious anomalies? Will he adopt the proposal made in a number of quarters—including the Private Member's Bill submitted by me—namely, that a periodic review should be undertaken and the results published so that we may see the very grave differences and anomalies arising out of the changes in the value of money?
    Sir D. Eccles: That is a question for my right hon. and learned Friend the Chancellor of the Exchequer, because it affects the public service as a whole.
    Mr. Manuel: Would not the Minister of Education agree that Members on all sides of the House are concerned not

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    so much that this matter should be dealt with on the same level, but to get a new level, and especially to get justice for those in the older age groups and to remove them from the obligation of approaching their Members of Parliament in order to get sufficient National Assistance to enable them to live?
    Sir D. Eccles: This is a very human problem, but I must say to the hon. Gentleman that it affects a very great number of people, and it is the responsibility of the Treasury.

    Coventry Teacher Training College
    Mr. G. M. Thomsonasked the Minister of Education why students and staff of Coventry Teacher Training College have had permission refused for holding lunches of bread and cheese as a means of raising funds to assist the Freedom from Hunger campaign.
    Sir D. Eccles: I am advised that the local education authority has no power to pass on to the campaign any sums saved in this way. But I welcome the students' gesture and hope that they will find another way of contributing.
    Mr. Thomson: Is not that a very unsatisfactory Answer? Is not the Minister aware that the Freedom from Hunger Campaign is an important campaign which is supposed to enjoy the blessing of the Government? Is it not a piece of bureaucratic nonsense to frustrate the generous impulse of teachers and students in this way? Will he give general advice that the training colleges should be encouraged to do this sort of thing?
    Sir D. Eccles: The law is not a piece of bureaucratic nonsense.
    Mr. Willey: May I ask the right hon. Gentleman not to be content with such an answer, but to look at this matter again to see whether he cannot give encouragement to such activities as this?
    Sir D. Eccles: I am entirely in favour of encouraging contributions to the campaign, which is obviously one of very great merit, but the law says that local education authorities have no power to pass on savings of this nature.
    Mrs. White: Cannot the law be changed? Is not that what we are here for, if necessary?

    Grammar School Education, Thornaby-on-Tees
    Dr. Brayasked the Minister of Education what percentage of children in recent years in the Borough of Thornaby-on-Tees has been selected at the 11-plus and 13-plus selections for secondary schools in which it is possible to take the General Certificate of Education examination; and what are the comparable figures for the North Riding as a whole and for the neighbouring boroughs of Middlesbrough and Stockton.
    Sir D. Eccles: In each of the last two years 10 per cent. of Thornaby children were selected for grammar schools at 11, and between 3 and 4 per cent. at 13. The corresponding figures for the North Riding as a whole, are 17 and between 2 and 3 per cent. For all these pupils, the same tests are used and the same standard of selection is adopted. Corresponding figures cannot be given for Middlesbrough or Stockton because in these areas, unlike the North Riding, G.C.E. courses are available in a number of unselective schools.
    Dr. Bray: Can the Minister explain why the 11-plus selections in Thornabyon-Tees are not only so low but also require a correction of one-third, as compared with one-eighth for the North Riding as a whole? Does he not agree that the large number of late developers in Thornaby indicates poor provision of bath primary and secondary education?
    Sir D. Eccles: I have asked about this, and I have no reason to think that primary school education is of a lower standard in Thornaby-on-Tees than in the North Riding generally.
    Dr. Bray: Is the Minister aware of the large proportion of supply teachers employed and the poor quality of the school buildings? Will he consider an investigation into this, and will he undertake the replacement of the two obsolete secondary modern schools by a comprehensive school at the earliest date?
    Sir D. Eccles: That is a very large request, but I will certainly look into it.

    Medical Officers (Special Investigations)
    Mr. A. Royleasked the Minister of Education what special investigations are at present being carried out by his medical officers.
    Mr. K. Thompson: Investigations at present in hand include studies over several years of groups of children suffering from defective hearing, blindness and partial sight, cerebral palsy and word blindness, as well as a long-term study of certain aspects of the growth of children.
    Mr. Royle: When does my hon. Friend expect this information to be available to hon. Members?
    Mr. Thompson: I would expect an interim report on one or two of the subjects to be available later this year, probably in the report which my right hon. Friend will present to the House on the health of the school child. Some of the other reports will be delayed because of the long-term nature of the study.

    Librarians
    Mr. Fitchasked the Minister of Education what steps he proposes to take to implement the recommendation in Paragraph 97 of the Roberts Report, in view of the shortage of qualified librarians.
    Sir D. Eccles: This is one of the matters on which I expect to receive general advice from the working party which is examining the basic requirements for an efficient library service.
    Mr. Fitch: Is the right hon. Gentleman aware that 40 per cent. of the posts in our public libraries at A.P.T. 1 and 2 levels are occupied by unqualified staff? Would he not agree that this is due mainly to the poor salaries paid and the poor prospects of those who work in our public libraries? Will he make a further effort to contact the appropriate joint negotiating body, and bring this matter to its notice?
    Sir D. Eccles: I am aware of a considerable shortage of qualified librarians, but at present I have no responsibility in this matter. I feel sure that the employing authorities have taken note of the recommendations of the Roberts
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    Report, and in many cases are acting upon them.
    Mr. Fitch: Is the right hon. Gentleman aware that they do not seem to be doing very much about this? Are these people to join the queue with the nurses and the probation officers and become the victims of the Government's "guiding light" policy?
    Sir D. Eccles: There is no question of that. At present, it is a matter for the local authorities, and it may well be that this further publicity for the library service will be taken notice of.
    Mrs. White: As the library service is deteriorating almost under our eyes, will the Minister try to hasten the report of the working party?
    Sir D. Eccles: I have no evidence that the library service is deteriorating. Within the last two months, I have visited a number of libraries and have found them in excellent shape.

    Pupils (Care of Teeth)
    Mr. Boxasked the Minister of Education whether he will consult local education authorities about the practicability of introducing compulsory and supervised daily teeth cleaning by pupils in schools under their control.
    Mr. K. Thompson: No, Sir. Local education authorities are free to arrange supervised teeth cleaning where they consider conditions are favourable.
    Mr. Box: Does not my hon. Friend agree that this is becoming a very serious problem? Is he aware that in a fairly recent survey into the dental health of children under the age of 12, not 3 per cent. were found to have a perfect set of teeth? Is he further aware that if we continue at the present rate of decline, we shall shortly be producing a nation of toothless adolescents? Will my hon. Friend discuss this question with his right hon. Friend the Minister of Health to see whether something can be done to salve what is rapidly becoming a national problem?
    Mr. Thompson: A great deal of dental health education is done at the schools. My Answer related to the specific suggestion of my hon. Friend. We take

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    very seriously the point he has made, and discussions have gone on and are continuing between my right hon. Friend and my right hon. Friend the Minister of Health.
    Mr. Mellish: Is it not a fact that the real trouble here with the school dental service is that we are so short of trained dentists because these people are paid so poorly? Is it not the old story about not getting the right people for the right jobs because they are not being paid the right salaries? When are the Government going to do something about that?
    Mr. Thompson: That is a gross oversimplification of the facts. There is a shortage of dentists throughout the country, both for the general dental service and for the school dental service.
    My right hon. Friend the Minister of Health has in hand the matter of increasing the supply of dentists.

    Primary Schools (Auxiliary Helpers)
    Mrs. Slaterasked the Minister of Education if it is proposed that girls leaving school and recruited as auxiliary helpers in primary schools should cease employment on marriage.
    Sir D. Eccles: I know of no such proposal.
    Mrs. Slater: In answer to a Question last week, the right hon. Gentleman said he hoped that recruitment—or one part of it, at any rate—would be amongst young girls who did not want to take up work in other fields but merely wanted a job until they got married. Is this the right attitude to take in recruiting young people for this kind of work? Will it not lead them to feel themselves to be in a blind alley job, suitable only for those who want to play around until marriage? Will the right hon. Gentleman try to correct the impression he gave last week?
    Sir D. Eccles: I cannot believe that any such impression was created. Of course, if the girls who get married still want to go on working, we shall be very pleased, and no doubt there will, I hope, be a considerable number of older married women willing to be auxiliaries.
    Mrs. Slater: I am sure that what I have said was the impression created
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    last week. Does not this show how urgent it is that the right hon. Gentleman should let everyone know what he intends these people to do? There is general uncertainty about it in the teaching profession and generally amongst those interested in education. Will he not do something to show clearly what is intended for these auxiliaries?
    Sir D. Eccles: The National Advisory Council for the Training and Supply of Teachers is urgently considering the details of this scheme. We had better wait —not very long—for it to make its recommendations.

    Temperance (Instruction)
    Mrs. Slaterasked the Minister of Education to what extent the teaching of temperance is included in the syllabus of schools under his control.
    Mr. K. Thompson: This is a matter for the teachers to decide. Suggestions for their consideration are contained in the Ministry's pamphlet "Health Education".
    Mrs. Slater: This Question may be misconstrued. It deals not merely with the question of drink but with temperance in all other aspects of life. Is it not important that, when people are concerned about youth generally in all aspects, encouragement should be given by the Minister to teachers to include much more of this teaching? The kind of lesson—whether hygiene or any other —would not matter, but this teaching should be done so that in our schools we lay the foundations of temperance amongst young folk.
    Mr. Thompson: I think the fact that there is relatively so small a proportion of unsatisfactory behaviour among young people as a whole is evidence that teachers are aware of their responsibilities and do this job quite well.

    Secondary Schools (Swimming Baths)
    Mr. Wainwrightasked the Minister of Education (1) if he will give the number of secondary schools in England and Wales and the number of such schools which do not contain swimming baths;
    (2) if he will give an up-to-date list of the number of secondary schools where there are no provisions for the pupils to be taught to swim.
    Sir D. Eccles: There are about 6,000 maintained secondary schools in England and Wales. The great majority of these schools do not have their own swimming baths, although the number of schools with their own baths, particularly pools for learners, is increasing. Swimming is mainly taught at public swimming baths.
    Mr. Wainwright: Will the right hon. Gentleman give further consideration to this to make certain that secondary schools have baths of their own? Where that is impossible, will he consult the Minister of Housing and Local Government and the Treasury to see that local authorities have financial help in building baths locally for schools? Does not the right hon. Gentleman agree that it is very important to teach swimming and life saving to children in order to prevent the great number of deaths among them by drowning, especially during the summer months?
    Sir D. Eccles: I am very much in favour of more swimming for school children. I recently opened a swimming bath in order to have the opportunity of saying almost exactly what the hon. Gentleman has just said.
    Mr. Wainwright: Although the right hon. Gentleman is interested in children having facilities for swimming lessons, may I ask him to do more and to make certain that more baths are built within secondary schools and, in places where this cannot be done, encourage public authorities to build them locally?
    Sir D. Eccles: There are more baths under construction than at any previous time, I think.
    Mrs. White: Is the right hon. Gentleman not going to publish the number in the OFFICIAL REPORT?
    Sir D. Eccles: This Question appeared on the Order Paper only yesterday and I have had no time to discover the numbers asked for.

  HOUSING

    Improvement Grants
    Mr. Frank Allaunasked the Minister of Housing and Local Government and Minister for Welsh Affairs (1) whether, in the case of houses lacking a bath, hot water or inside toilet, and whether the house is suitable for improvement, he will take powers to enable him, where the tenant is willing, to require the landlord to apply for and use an improvement grant;
    (2) what compulsory purchase measures or other compulsory steps he proposes to ensure that baths, hot water systems and inside toilets are added to houses suitable for such improvements.
    The Minister of Housing and Local Government and Minister for Welsh Affairs (Dr. Charles Hill): I believe that co-operation is preferable to compulsion and that a fresh effort on this basis can increase the number of improvements. I shall, within the next few weeks, be asking local authorities to make a new drive to secure the carrying out of improvement schemes for whole groups or areas of houses in agreement with the owners. Though I would hope that most owners would be willing to co-operate, some compulsory acquisition may be necessary to prevent the frustration of schemes by an unwilling minority.
    Mr. Allaun: While welcoming that reply to a certain extent, may I ask the Minister whether this will really do what the experts on the subject have asked for? By experts, I mean the local authority experts—the public health inspectors—who almost unanimously feel that the statutory standard of fitness should be raised to include these three things, and that compulsion on the landlord is necessary to get it. Is the right hon. Gentleman aware that 112 Labour Members and some hon. Members opposite now favour this course?
    Dr. Hill: When I was in Leeds last week, where they have adopted, broadly speaking, the method I shall be advocating in the circular, I was very greatly impressed by the results of a concentrated drive on a particular area, including offers, if necessary, to lend money to the owner of the property.

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    The whole scheme has produced very significant results there. As a next step I want to see it done elsewhere.
    Mr. Woodburn: This is a very important question, but is the right hon. Gentleman taking further steps to see that when all these baths are provided there will be enough water to go into them? It may be that this will intensify a water crisis. Sooner or later will not the Government have to plan water supplies in this country?
    Dr. Hill: If the right hon. Gentleman wants to extend his natural interest in that fluid, I suggest he puts down a Question.

    Compulsory Purchase Order, Bethnal Green
    Mr. Holmanasked the Minister of Housing and Local Government and Minister for Welsh Affairs whether he has reached a decision with regard to the compulsory purchase order submitted to him by the Metropolitan borough of Bethnal Green covering certain properties in Corfield Street, Wilmot Street and Finnis Street, London, E.2.
    Dr. Hill: As the hon. Member knows, this is a contentious order and the inquiry took two days. I have not yet reached a decision, but will issue it as soon as possible.
    Mr. Holman: I regret the delay by the Minister. May I ask whether he is aware that, in addition to 30 families having received orders to quit, approximately 150 other families are refusing to pay the increased rents which they originally agreed to pay under duress because of the appalliing housing conditions which exist and shortages in East London?
    Dr. Hill: As the hon. Member will appreciate, it would be inappropriate for me to comment on the details. There has been no unreasonable delay. I have had the report for a fortnight and a decision will be issued in a very few days.
    Mr. M. Stewart: Is the Minister aware that the landlords have stated that they feel obliged to push up the rents because, if they do not, they may be the subject of a take-over bid? Does not this indicate the growing unsuitability of
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    private landlordism for providing or looking after accommodation of this kind?
    Dr. Hill: I ought not and I will not make comments or reply to questions which would seem to have a bearing on this case, which has yet to be decided.

    Local Authority Housing (Average Tender Price)
    Mr. Boydenasked the Minister of Housing and Local Government and Minister for Welsh Affairs what was the average tender price per square foot for local authority houses where tenders were approved by him in the first three months of 1962.
    The Joint Parliamentary Secretary to the Ministry of Housing and Local Government (Mr. Geoffrey Rippon): The average price per square foot of three-bedroom houses in tenders approved during the first quarter of this year was 42s. 1½d.
    Mr. Boyden: Is not this very much worse than in 1961? Were not the facts then that the normal average council house was costing £175 more? What on earth is the Minister proposing to do about this?
    Mr. Rippon: The figure for 1961 was 39s. 9½d. One reason for the increase, as we have explained several times in this House, is slowness of completion during the period of 1961. As a result of Government action, this position is improving and the provisional figures for April and May of this year show a slight reduction.
    Mr. Boyden: Will the hon. Gentleman say exactly what he is doing, because completion is not the only answer?
    Mr. Rippon: It is not the only answer. As a result of urging on local authorities the need for more realistic programmes and putting in the pipeline what they can reasonably expect to complete, we have some evidence that prices are tending to fall and the rate of completion is rising.
    Mr. M. Stewart: If it is the Government's policy to speed up the rate of completion by causing fewer buildings to be started, that will not help to solve the housing problem, will it?
    Mr. Rippon: I do not think that the hon. Gentleman is quite accurate in the

    1507
    way in which he has put the matter. What has happened is that the average period of the construction of a local authority house in the last quarter of last year was 15·4 months and in the first quarter of this year it had been reduced to 14·7 months. This will be reflected in better results in completions and prices.

    Compulsory Purchase Order, Gateshead
    Mr. Randallasked the Minister of Housing and Local Government and Minister for Welsh Affairs when he proposes to give a decision concerning the Askew Road and St. Cuthbert's Road (No. 1) compulsory purchase order.
    Mr. Rippon: My right hon. Friend expects to do so before the end of the month. He will send the hon. Member a copy of the decision letter.
    Mr. Randall: I thank the hon. Gentleman for that reply. Will he inform his right hon. Friend that unless the order is confirmed by 31st July, which is the date of his visit to Gateshead, while I am sure that the Minister will get a warm reception at Gateshead, if the order is not confirmed his reception may not necessarily be a cordial one?
    Mr. Rippon: I think that the order will be confirmed. I am sure that the hon. Member will appreciate the difficulty of dealing with an order of this kind which affected 500 properties and aroused 27 objections. We have dealt with it as speedily as possible.

  LOCAL GOVERNMENT

    Gypsies
    Mr. M. Stewartasked the Minister of Housing and Local Government and Minister for Welsh Affairs what information he has received from county councils in reply to his Circular No. 6/62 of 8th February, 1962, concerning gypsies; and whether he will publish this information.
    Mr. Doddsasked the Minister of Housing and Local Government and Minister for Welsh Affairs what has been the response of local authorities in England and Wales to Circular No. 6/62 in respect to gypsies and other
    1508
    travellers; and if he will state the prospects of providing sites for next winter so that those who are now employed on farms and other seasonal work will in due course find sanctuary within the law.
    Mr. J. Wellsasked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will make a statement on the response of the county councils to his Circular No. 6/62 of 8th February, 1962, on the gypsy problem.
    Mr. Pavittasked the Minister of Housing and Local Government and Minister for Welsh Affairs what progress has been made in ascertaining the extent of the gypsy problem to be dealt with in England and Wales as the result of his Circular No. 6/62 dated 8th February; what estimate he has made of the problems which will arise next winter; and what action he will take to deal with the situation.
    Mr. Awberyasked the Minister of Housing and Local Government and Minister for Welsh Affairs what developments have taken place arising out of his circular to local authorities asking them to provide proper sites and reasonable conditions for the gypsy fraternity; and which authorities have now requested advice or assistance from his department.
    Dr. D. Johnsonasked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will make a statement on the response to his Circular No. 6/62.of 8th February, 1962, on the gypsy problem.
    Mr. Owenasked the Minister of Housing and Local Government and Minister for Welsh Affairs what cooperation is being received from county councils, following the issue of Circular 6/62 on the gypsy problem.
    Mr. Rippon: Of the 62 county councils in England and Wales, 18 have stated that they have no gypsy problem, 12 are considering the provision of special sites, 10 have made or are making surveys, the results of which are not yet available, and 22 have not yet replied.
    The replies so far received suggest that the need for special sites is more local than general, and that it arises mainly in

    1509
    the Home Counties. My right hon. Friend has no reason to think that it is beyond the capacity of the county councils and local authorities concerned to ensure that proper sites are available where required.
    Though the practical results of the circular are bound to be slow in coming, it has helped to create a greater awareness of this very difficult problem and has resulted in some positive steps. When all the replies to the circular are received, my right hon. Friend will consider whether any further action is called for.
    Mr. Stewart: Does not the hon. Gentleman agree that it is desirable that any action that can be taken should be taken before winter? Will he bear that in mind during the coming months?
    Mr. Rippon: I am sure that is right, but I am equally sure that local authorities will do their best to ensure that the necessary sites are ready. That is certainly their duty.
    Mr. Dodds: Is the hon. Gentleman aware that it has come to my notice that in many areas no surveys have been taken, while many of these families have gone to the farms in the usual way and will not be included in surveys because they have accommodation at present? Is the Minister satisfied that enough has been done to ensure that next winter these human beings will not once again be treated as human shuttlecocks, which is a terrible disgrace for this country in 1962?
    Mr. Rippon: I will certainly undertake to look into any case the hon. Gentleman refers me to. I know the interest he has taken in this matter throughout. We are not satisfied with the progress that has been made, but we feel that the local authorities are in a position to deal with the matter if they so choose.
    Mr. Awbery: Will the Minister urge the 22 authorities which have not yet replied to his circular to give greater attention to this problem and to bear in mind the human side of it and the fact that these people will be out in the weather during the winter?
    Mr. Rippon: We sent a reminder on 26th June to those which had not replied. If that does not produce results, we shall certainly press them harder.
    Mr. Marsh: Has the hon. Gentleman seen the deplorable state of affairs on the A.2, the main Dover-London Road, 20 miles from central London, where small children are living on the side of the road, and have been for many months, in hovels and under conditions which would be deplorable in any under-developed part of the world? What are the Government proposing to do about it?
    Mr. Rippon: Yes, Sir, I have seen it and it is deplorable. I have discussed the matter with representatives of the Kent County Council which is meeting the district councils next week, and I hope that some action will follow.

    TROOPSHIPS "OXFORDSHIRE" AND "NEVASA"
    Mr. Dalyellasked the Prime Minister if he will request the Secretaries of State for War and Commonwealth Relations, and the Ministers of Transport, Education and Health, to prepare a scheme for continuing the Government contract far the troopships "Oxford-shire" and "Nevasa" until 1971 in order to avoid the payment of several million pounds as compensation for cancelling the contract, and to enable the vessels to be used for purposes such as taking pneumoconiotic and silicotic coal miners to southern waters as part of treatment under the National Health Service, taking potential young athletes to the Tokyo Olympic Games or taking 17–18-year-olds to Commonwealth countries as part of their education; and if he will make an estimate of the cost of such Government-sponsored schemes compared with the cost of paying the compensation.
    The Prime Minister (Mr. Harold Macmillan): Discussions about compensation for breaking the charter of these ships are not yet concluded, but any schemes of the kind suggested by the hon. Member are likely to cost so much more than the probable compensation as to make them unacceptable as a charge on public funds.
    Mr. Dalyell: Is the right hon. Gentleman aware that by brushing aside such schemes he is throwing away £9 million from the public purse fruitlessly?
    The Prime Minister: I think that we had better go on and see how the negotiations continue.
    Mr. Shinwell: Will the right hon. Gentleman advise his right hon. Friend the Minister of Transport to look into this matter? Is he aware that if ship-owners were asked to undertake the management of these vessels the company which is not making a profit, and therefore not receiving the investment allowance of 40 per cent., would make a profit from the management of the vessels and get the 40 per cent, and so he would be helping the shipping industry as well as making a very valuable contribution?
    The Prime Minister: I shall bear all that in mind.
    Mr. Rankin: Would not the right hon. Gentleman recognise the importance of the school-ship in promoting or helping to promote world peace, particularly by bringing into contact with one another children and young people of all ages and climes during the formative period of their lives? Does not he realise that by following such a policy he might save far more money than he is spending today in wasteful ways?
    The Prime Minister: All these considerations will be borne in mind.

    COMMITTEES AND ROYAL COMMISSIONS
    Mr. Montgomeryasked the Prime Minister whether, when considering the formation of a committee or advising on the appointment of a Royal Commission, he will arrange for the Minister concerned to publish two weeks beforehand the names of those persons to whom invitations are to be sent.
    The Prime Minister: No, Sir. I do not think it would be right to make this departure from established practice.
    Mr. Montgomery: Is my right hon. Friend aware of the great concern ex-pressed by many people about the composition of the Pilkington Commission? Is he aware that many people felt that there was no one on the Commission to speak for the ordinary television viewer? Would not it be a good idea at least to
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    get as representative a committee as possible to discuss these matters to try to see that all views are represented?
    The Prime Minister: That, of course, might be a criticism of those—in this case myself—whose duty it is to make recommendations to the Queen regarding appointments to Royal Commissions. I do not think that it would be right to invite particular persons to have, as it were, their names put up for criticism. I am only too grateful to those who are willing to serve.
    Mr. Gaitskell: Would the right hon. Gentleman think it wise to confirm that there was no criticism at the time of the appointment of the Pilkington Commission and that the criticism has been made only since its Report?
    The Prime Minister: As a matter of fact there was some criticism. There was considerable criticism from the party of the right hon. Gentleman, because they thought I ought not to have appointed an industrial magnate.
    Sir H. Legge-Bourke: Will my right hon. Friend bear in mind that it is all too easy to criticise, after the event of the Report, those who have prepared the Report if one happens to disagree with the recommendations which are made? Will he accept my assurance that there are some hon. Members on this side of the House who think that the Report was a very good job.
    The Prime Minister: I am not going to discuss the Report. The Question was related to how Royal Commissions are appointed. The responsibility must rest on the Prime Minister of the day to advise. I should like to take the opportunity to thank the many people who serve on a great number of these Commissions and give their time, and often find it a very great sacrifice.
    Mr. Mayhew: Is the Prime Minister aware that the expression of gratitude to the Pilkington Commission in the White Paper is notably perfunctory? In view of the violent personal attacks which have been made in various newspapers, might not an expression of sympathy as well as gratitude be extended to the members of the Commission?
    The Prime Minister: I suppose everybody who serves on any public body deserves sympathy as well as gratitude.

    EUROPEAN ECONOMIC COMMUNITY
    Sir J. Lucasasked the Prime Minister if a vote will be taken on the Common Market at the Conference of Commonwealth Prime Ministers; and whether this will be recorded.
    The Prime Minister: The procedure at meetings of Commonwealth Prime Ministers is decided by the Prime Ministers collectively. As I said on 10th April in reply to the right hon. Gentleman the Member for Clackmannan and East Stirlingshire (Mr. Woodburn), it has always been our rule at these meetings to exchange views, to hold discussions, but not to reach decisions binding on the Governments of the Commonwealth.
    Sir J. Lucas: While I recognise the propriety of that statement, may I ask whether, as we are eventually to vote on entry into the Common Market, we shall be told of the gist of the opinions or just that there have been useful conversations?
    The Prime Minister: I have noticed in practice that there has been no undue lack of publicity about the views expressed.
    Mr. Gaitskell: Will the Prime Minister make plain before the Commonwealth Prime Ministers' Conference what it is exactly that is being discussed there? Can he give us an assurance that, if the Lord Privy Seal is unable to present to the House of Commons before the Recess the provisional outline agreement he has in mind, any such agreement will be published and made available to the public as soon as it is made, and if necessary before the Commonwealth Prime Ministers' Conference?
    The Prime Minister: I should like to consider the precise situation which we reach at the end of the month, but I can certainly give the House an assurance. Hon. Members know that Her Majesty's Government are bound by the Resolution passed by both Houses on 3rd August and we would not hesitate to
    1514
    recall the House for any reason if it was necessary to do so during the Summer Recess.
    Mr. Gaitskell: Will the Prime Minister clear this up a little further? Is he aware that last Friday morning there were reports in most newspapers that in the view of the Government it was doubtful whether full agreement would be reached by the end of July and that Parliament would have to be recalled? Can he say what the position is and when a fuller statement is likely to be made to the House?
    The Prime Minister: I do not know quite what might be the position at the end of this particular stage of the negotiations at the end of July. I do not think "full agreement" is likely to be reached in that sense, but there will be a review of the stage of the negotiations and discussion with the Prime Ministers. Then we shall have to decide what is the best course to follow.
    Mr. Gaitskell: I am sorry to press this, but what I am concerned about is when a statement is to be made either to the House or to the country. Is it anticipated that the Lord Privy Seal will be making such a statement before the Recess? If not, when is it to be made and can we be assured that the public in general will be aware of the problems at issue before the Prime Ministers' Conference meets?
    The Prime Minister: I cannot be quite sure because it depends on the progress of the negotiations.
    Mr. Ridsdale: Will my right hon. Friend agree that the outcome at the Prime Ministers' Conference is likely to be dependent on the position of temperate foodstuffs? Is he aware that a temporary solution up to 1970 with a doubtful political let-out after that date are terms which, in my opinion, would not be acceptable to the vast majority in the country, let alone the Commonwealth Prime Ministers' Conference?
    The Prime Minister: These are all matters for negotiation. What I am trying to deal with is that we are going to try to be in a position to present to the Prime Ministers' Conference the state of the negotiations as they may be at that time.
    Mr. Grimond: When the Prime Minister says that he would not in certain circumstances hesitate to recall the House, can he say specifically whether if the heads of agreement are not known by the time the House rises but are known during August or September he will definitely recall the House?
    The Prime Minister: If that should occur the next thing would be the Prime Ministers' Conference. After that it might be necessary to recall the House.
    Mr. H. Wilson: Would the Prime Minister not take this point, that if the House were sitting it is clear that we would have the normal report from the Lord Privy Seal after a visit to Brussels which we always get? Since we may get a delay of a week or fortnight or possibly longer and then have the accident that the House is not sitting, would not the Prime Minister agree in those circumstances that the country, if not the House, is entitled to have the same degree of information on these vital negotiations that we would have got if the House had been sitting? Would he agree to do that? Furthermore, will he recognise—because this is our experience—that whenever there have been talks in Brussels, there have been substantial leakages to the Continental Press, not only the British Press, about what is going on. It is vital to have an authoritative statement from our Government representative in the Brussels talks. If he cannot recall the House before the Prime Ministers' Conference, will he arrange that we should get a statement at least as full as the Lord Privy Seal would have given to the House if the House had been sitting?
    The Prime Minister: I think the House has been broadly satisfied with the progress reports—if that is the right expression—which the Lord Privy Seal has been giving. I hope that will be possible before the House rises, but that is a different thing from the whole agreement itself; it is a progress report about how we stand.

    ATLANTIC COMMUNITY
    Mr. A. Hendersonasked the Prime Minister What is the policy of Her Majesty's Government with regard to the formation of an Atlantic Community
    1516
    embodying Western Europe, including the United Kingdom, and the United States of America.
    The Prime Minister: The United Kingdom is already closely joined with many of the countries of Western Europe and the United States in the North Atlantic Treaty Organisation and the Organisation for Economic Cooperation and Development. With regard to the rather wider aspects of the Question, my right hon. Friends and I have explained the Government's policy in many speeches over the years. I do not think I could adequately summarise these speeches in answer to a Question, but the right hon. and learned Gentleman may remember that, for example, on 6th December, 1960, I said in the House that I had always made it clear that:
    "… I believe that Europe, the United Kingdom, the Commonwealth and United States should in monetary matters, economic matters and defence matters and all their general policy work towards an ever-closer union"—[OFFICIAL REPORT, 6th December, 1960; Vol. 631, c. 1066.]
    Mr. Henderson: Has the Prime Minister considered the recent speech of President Kennedy? Would he not agree that it has a most important international political significance? Can we be assured that Her Majesty's Government will fully co-operate with all concerned in making that concept into a reality?
    The Prime Minister: Yes, Sir. I should have thought that it was a commendable speech, and it was very welcome especially to those of us who have been trying to float this word "interdependence" for quite a time.
    Mr. Gaitskell: Is the Prime Minister aware that in the course of that speech President Kennedy said that the United States would be prepared to discuss with a united Europe the ways and means of forming a concrete Atlantic partnership? Since this concept ought to be clarified before negotiations for our entry into the Common Market are completed, would it not be a good idea to seek from President Kennedy what he has in mind when he speaks of a concrete Atlantic partnership?
    The Prime Minister: I will consider that too, but we have to get on with one thing at a time.
    Mr. Smithers: Is not the idea put forward by the President much more likely to come to fruition after the negotiations have been successfully completed?
    Hon. Members: Answer.

    NUCLEAR TESTS
    Mr. Shinwellasked the Prime Minister what information he has received from the United States Government on recent research in the detection of atomic testing.
    Mr. P. Noel-Bakerasked the Prime Minister whether he has yet received the official report on the detection of the nuclear tests recently carried out by the United States Government; and whether he will publish this Report as a Command Paper.
    The Prime Minister: The right hon. Gentlemen are no doubt referring to the interesting statement released by the American Department of Defence on 7th July. As the statement made clear, the new data which have emerged from Project Vela must be reviewed and fully evaluated. We all hope that these developments, which on the face of it are encouraging, will make it possible for us to achieve some advance in this complicated and highly technical field. I am confident that the experimental data will be made available to us through our normal exchanges of information with the United States authorities. As the House knows, there are regular informal meetings between British and American scientists. It so happens that one of these meetings is taking place this week and these matters will no doubt be included in the topics for discussion.
    The Press statement issued by the Defence Department is widely available and I do not think that there is any need for it to be published as a Command Paper. I will certainly consider, when we have made the evaluation of this new information, whether a Command Paper would be useful, but of course these are American experiments and the publication of the findings is primarily a matter for them.
    Mr. Shinwell: Would not the Prime Minister agree that as these researches
    1518
    seem to indicate the possibility of detection of atomic explosions without reference to inspection on the spot, it is very desirable that the Government should come to a speedy conclusion on this matter in order to avoid further testing, and the United States authorities should be advised accordingly?
    The Prime Minister: I do not know that it necessarily deals with the question of verification, but if these experiments have gone further on the lines which we had some hope of, they certainly make a very important addition to the whole problem and a great advance.
    Mr. P. Noel-Baker: As it seems clear from what the United States Government have published that underground nuclear explosions can be detected with much greater certainty and at much greater distances than was previously believed, will the Prime Minister allow the House to have the actual text of the statement which the United States released?
    The Prime Minister: That has been fully published, but I would certainly consider a Command Paper if I thought it would be useful.
    Mr. H. Wilson: Will the Prime Minister agree to place the text in the Library, because it is better to have official texts than to rely on newspaper reports? Secondly, will he make a statement in the House following what he calls a routine meeting—but what on this occasion is more important than that—of the scientists of the two countries? Is he aware that this is vitally important to the resumed Geneva negotiations, and the whole House will want to know the outcome of these new American discoveries, if that is what they are.
    The Prime Minister: Of course it is of great importance. I shall see whether the text can be got. I have only the newspaper reports of the text, but I will put it in the Library. With regard to progress, I should make a statement if I thought it necessary, or answer a Question.
    Mrs. Castle: Will the Prime Minister say whether Professor Don Leet has been invited to take part in these current discussions?
    The Prime Minister: I am afraid that I do not know. That would be the American side.
    Mr. Frank Allaun: Does not the Prime Minister agree that, whatever the risk of Russia or America carrying out small underground tests without detection, the alternative risk, which is that both sides will continue to hold series of large atmospheric tests, is far greater; and if the "Big Two" cannot get out of their clinch, could not Britain accept the neutrals' proposal that we should stop tests now, with existing means of detection?
    The Prime Minister: I think that we are much more likely to make progress to the end we want if we and our American partners try to concert a joint policy.

BUSINESS OF THE HOUSE
Mr. Gaitskell: May I ask the Leader of the House whether he will state the business of the House for next week?
The Chancellor of the Duchy of Lancaster (Mr Iain Macleod): Yes, Sir. The business for next week will be as follows:
MONDAY, 16TH JULY—Second Reading of the Uganda Independence Bill, and Committee stage of the Money Resolution.
Committee and remaining stages of the Building Societies Bill [Lords], and the Town and Country Planning Bill [Lords], and Second Reading of the Education (Scotland) Bill [Lords], which are consolidation Measures.
Afterwards, Motions on the White Fish and Herring and Salmon Orders and Schemes.
TUESDAY, 17TH JULY—Report and Third Reading of the Road Traffic Bill [Lords].
WEDNESDAY, 18TH JULY—Supply [25th Allotted Day]: Committee.
There will be a debate on Aviation, on the appropriate Votes.
At 9.30 p.m. the Question will be put from the Chair on the Vote under discussion and on all outstanding Votes.
Uganda Independence Bill: Committee and remaining stages.
THURSDAY, 19TH JULY—Supply [26th Allotted Day]: Report.
A debate will take place on Industry and Employment in Scotland, on the appropriate Votes.
At 9.30 p.m. the Question will be put from the Chair on the Vote under discussion and on all outstanding Votes.
Committee and remaining stages of the Education (Scotland) Bill [Lords] which is a consolidation Measure.
Motions on the Small Farmer Schemes for the United Kingdom.
FRIDAY, 20TH JULY—Consideration of Lords Amendments to the Transport Bill.
Motions on the Motor Vehicles (Tests) (Extension) Order, 1962, and on the National Health Service (Superannuation) Amendment Regulations for England and Wales and for Scotland.
MONDAY, 23RD JULY—The proposed business will be: Second Reading of the Consolidated Fund (Appropriation) Bill.
There will be a debate on Disarmament, until seven o'clock, and afterwards on Coal Mine Closures. Redundancy and Unemployment in the North-East.
Motion on the Greenwich Hospital and Travers' Foundation Accounts.
Mr. Gaitskell: Will the Leader of the House explain what steps are to be taken to keep the House informed of the progress of Common Market negotiations? May we take it that the Lord Privy Seal will make a statement after the meeting on, I think, 18th July, and after the further meeting about ten days later? What have the Government in mind as a way of keeping the House, and the country, informed if the negotiations continue during the Summer Recess? If the Leader of the House does not yet have any clear idea about how this is to be done—as seems to be the case from the Prime Minister's answers today—will he, at least, make a statement at a very early date?
Mr. Macleod: My right hon. Friend the Lord Privy Seal will, of course, report to the House, as he has done before, on progress. I will certainly consider with him and the Prime Minister the question of a statement.
Mr. Gaitskell: Can the right hon. Gentleman say whether it is intended to have a debate on the Common Market also before the Recess?
Mr. Macleod: We will willingly discuss these matters through the usual channels. If I may answer generally on the question of debates, apart from the two days on the Consolidated Fund (Appropriation) Bill, of which I have announced the business for one day—and the Opposition, of course, have the choice of subjects—there are three or four days available; but, of course, the debates on the Pilkington Report and on Welsh Affairs mortgage two of these, but we would gladly discuss these matters through the usual channels.
Mr. Stratton Mills: Referring to next Wednesday's debate on aviation, in view of the serious concern there is in Northern Ireland about the future of Short and Harland's, in which the Government is the majority shareholder, will my right hon. Friend consult the Minister of Aviation with a view to making certain that in that debate there is a clear statement of the Government's future policy in regard to this firm?
Mr. Macleod: I shall certainly draw that matter to the attention of my right hon. Friend the Minister of Aviation.
Mr. Strauss: In view of the amount of contentious matter in the Road Traffic Bill and the number of points that hon. Members will want to put forward in Amendments, is the Leader of the House aware that one day for Report and Third Reading may prove to be quite inadequate?
Mr. Macleod: That is similar to the point put last week about the Licensing (Scotland) Bill, which, in the end, we did get at a reasonable hour last night. I give the same answer as I gave last week; I have no intention of pushing this business late into the night. We will see how we get on.
Mr. Montgomery: In view of the enormous amount of time that seems to be spent on Scottish business—[HON. MEMBERS: "Oh."]—and as we are to have a full day's debate on Thursday on industry and employment in Scotland, could my right hon. Friend extend the debate to take in the position in
1522
north-east England, which is also a very important part of the United Kingdom?
Mr. Macleod: I am not sure whether my hon. Friend heard me, but the business for Monday week is that on the Second Reading of the Consolidated Fund (Appropriation) Bill it is proposed that the second subject for discussion then should be, to repeat my statement, "Coal mine closures, redundancy and unemployment in the North-East." I hope that that covers my hon. Friend's point.
Mr. Shinwell: Do I understand from what the Leader of the House previously said that everything has been tied up for the first day of the Consolidated Fund (Appropriation) Bill, Second Reading? I gather that that is the position and I make no complaint about it, because of the important issues involved, but do I also understand that on the second day of our proceedings on the Bill everything is also tied up, and that back benchers will have no opportunity of raising whatever matters they may desire to put to the House?
Will the right hon. Gentleman remind himself of the request made to him last Thursday about a Motion on the Order Paper dealing with the challenge to the Government's general economic and industrial policy? If he cannot afford facilities for a debate on that matter because of time considerations, will he see that the second day on the Consolidated Fund (Appropriation) Bill will not be tied up, so that that matter can be debated?
[That this House, noting the failure of the Government to organise the nation's affairs with the result that unemployment continues and the expansion of industry is prevented in areas previously dominated by the manufacture of textiles, shipbuilding, coalmining, etc.; realising that even the electrical equipment industries, at present prosperous, are vulnerable to fluctuations caused by financial manipulation; disturbed by the growing tendency to the creation of monopolies in private industry; condemns a society in which personal profit rather than social welfare determines the flow of investment capital; calls attention to the menacing growth of the economic power of a small minority of

1523
people, to the growth of private monopoly and the concentration of financial capital, and the consequent growth of economic power in organisations which are run for private profit and not in the national interests, to the growth of the giant corporations and private financial trusts which are increasingly dominating British life and economy; and calls for an urgent investigation into this trend and the application of a policy which will provide for an extension of public ownership so that Parliamentary control is established over the means of production, distribution and exchange, to enable a Socialist Britain to play an effective part in providing an expanding standard of living and contribute to the development of world resources in order that economic factors which foster national and international unrest can be removed.]
Mr. Macleod: I have announced the suggested two main subjects for debate on the Consolidated Fund (Appropriation) Bill on Monday, 23rd July. The business for the second day's debate on the Bill has not yet been discussed, so it is not, to use the right hon. Gentleman's words, "tied up" in that way. That does not, of course, prevent hon. Members from raising individual matters on the Bill. I imagine that it would be in order to discuss the matter to which the right hon. Gentleman refers.
Mr. Bence: Would not the Leader of the House concede an extra day to debate the calamitous consequences to Scotland of the present Administration? Does he not agree that one day is quite insufficient to debate the serious situation that the Government are creating in Scotland?
Mr. Macleod: No, Sir. The subject for Thursday has been put down at the request of the Opposition and, cleanly, from what I said about the time available, I cannot promise time beyond that.
Mr. Fletcher: Can the Leader of the House tell us whether the House will have an opportunity to consider the Report of the Royal Commission on the Police?
Mr. Macleod: It is not at all likely that there will be any opportunity before the Summer Recess.
Mr. Brockway: Since the events in Trafalgar Square two Sundays ago, has the right hon. Gentleman noticed the wide support there is from many new sources in favour of the House having an opportunity to discuss the Racial Discrimination and Incitement Bill, supported by hon. Members of all three parties? Will he give the House an opportunity to pass its view on that Measure, which many of us regard as a most constructive contribution towards the solution of this problem?
Mr. Macleod: I think that the hon. Gentleman will recognise that even those—and I include myself amongst them—who do not believe that his Bill is the right way of tackling this problem, nevertheless share the thoughts that lie behind it. As I have said before, although in another context, I could not undertake to find time for that Bill but, no doubt, these matters could be raised on the Consolidated Fund (Appropriation) Bill.
Mr. Gaitskell: Is the right hon. Gentleman aware that the Trafalgar Square meeting and what took place there lends added urgency to the point raised by my hon. Friend the Member for Eton and Slough (Mr. Brockway)? Can he say when the Home Secretary expects to make a further statement on this matter? Am I right in saying that the Home Secretary promised to consider the points put to him at Question Time recently? May we have another statement?
Mr. Macleod: My right hon. Friend certainly undertook to consider points put to him. It is not my impression, though I will speak to him about it, that he promised a further statement.
Mr. Grimond: Is the Leader of the House aware that many people think that it is genuinely difficult to control meetings in Trafalgar Square or to discriminate between them in the existing state of legislation and, indeed, that this may be undesirable? Would he not agree that some Measure, at least, of the type proposed by the hon. Member for Eton and Slough (Mr. Brockway), would do nothing but good? If the right hon. Gentleman does not like that particular Measure, although it is supported by all

1525
parties in the House, will the Government bring forward a Measure of their own in the new Session?
Mr. Macleod: I am not certain that this matter can effectively be dealt with by legislation and my own study of the experience of other countries and difficulties n this field tends to reinforce this. However, I think that we are getting rather away from the subject of the business for next week.
Mr. Thorpe: Does the right hon. Gentleman recall that last week I pointed out the need to have a debate on the Annual Farm Price Review, despite the apparent reluctance of hon. Gentlemen opposite—with the exception of five of them—to press for a debate? It is now well over five months since the Review was published. Will the Leader of the House tell us what discussions he has had with the Opposition to end this mutual conspiracy of silence? How much longer must this industry wait before we have a major debate?
Mr. Macleod: I think, not for the first time, that the hon. Member for Devon, North (Mr. Thorpe) has got this matter quite out of perspective and quite wrong. In fact, during the last ten years Government time has never been given to discussing specifically the Price Review. In that period on only two occasions, in 1956 and 1960, have the Opposition taken Supply time for this purpose. There have been a number of agricultural debates, but it is not the practice of the House to have an annual debate on the Price Review.
Mr. Emrys Hughes: In view of the reference that has been made to the new Session, can the Leader of the House assure us that there is no possibility of there being a General Election in the autumn?
Mr. Macleod: Yes; I think I can.
Mr. Mellish: Will the Leader of the House take note of the fact that a report has been published today which shows the grave position of the homeless in London, which has a larger population than Scotland? As we who represent these homeless people will be demanding a debate on this important matter, will the right hon. Gentleman find time to debate it before the end of this Session?
Mr. Macleod: I cannot find Government time for the reasons I have given; that there are so many claimants on it. We would have to push out the Common Market, foreign affairs, or something else. However, this is certainly a subject which individual hon. Members may wish to raise on the Consolidated Fund (Appropriation) Bill.
Mr. W. Baxter: Is the Leader of the House aware that some hon. Members from Scotland are getting a bit tired of the groans and moans of Englishmen when matters pertaining to the wellbeing of Scotland are likely to be discussed? Will he kindly inform some of his hon. Friends—and I will inform some of mine—that Scotland is a nation in its own right and that if they do not want to hear our voices in Parliament the best thing they can do is to give us a Parliament of our own?
Hon. Members: Hear, hear.
Mr. Speaker: Order. We cannot bring all these land frontiers into the business for next week.
Dr. King: Can the Leader of the House tell us when he hopes to make his promised statement—a promise which gave great pleasure to pensioners —on war service and public service pensioners?
Mr. Macleod: I will not make it myself. I think that it will be made by either the Chancellor of the Exchequer or the Chief Secretary to the Treasury, on, I think, Tuesday.
Mr. Rankin: In view the question from the hon. Member for Belfast, North (Mr. Stratton Mills) about Short Brothers and Harland, may we take it that all the Votes necessary to allow a comprehensive debate on aviation matters will be under discussion on Wednesday?
Mr. Macleod: Yes, Sir. We will put down, at the request of the Opposition, all the appropriate Votes to cover all these matters.

BUSINESS OF THE HOUSE
Ordered, That this day Business other than the Business of Supply may be taken before Ten o'clock.—[Mr. Iain Macleod.]
ORDERS OF THE DAY

  SUPPLY
  [24TH ALLOTTED DAY]
  Considered in Committee.
  [Sir WILLIAM ANSTRUTHER-GRAY in the Chair]
  CIVIL ESTIMATES, 1962–63
  CLASS VII
  VOTE 2. OFFICE OF THE MINISTER FOR SCIENCE
  Motion made, and Question proposed,
  That a sum, not exceeding £73,000, be granted to Her Majesty, to complete the sum necessary to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1963, for the salaries and expenses of the Office of the Minister for Science.—[£33,000 has been voted on account.]

  SCIENCE AND INDUSTRY
  3.55 p.m.
  Mr. G. R. Mitchison: This is a debate on science and industry and we propose to cover quite a lot of ground. Indeed, I feel inclined to ask the Committee to have pity on me, so many are the works of science nowadays and so diverse the organisations concerned with them. Through this thicket of thorny bushes I propose to chase, if I can, the noble Lord the Minister for Science and the Parliamentary Secretary. They may hide in many places, but we have to discover what it is they are really here for.
  The first question I wish to ask, a simple one, remains unanswered and is about the activities of the Minister for Science. What does he do? We have never discovered the answer. His physical birth was, no doubt, attended by many voluble fairies, while his Ministerial birth was a much quieter matter. By an Order in Council in 1959 there were transferred to him certain powers, somewhat undefined, which he had already under another name. So the Minister for Science came into existence. There were added to him one or two small matters which had been kept by
  1528
  the Prime Minister. One would expect, in these circumstances, to find in a Statute, in the Order, or somewhere else a clear statement of what his function was. I have been unable to find any such statement.
  One of the noble Lord's activities, shared by the Parliamentary Secretary, is to make speeches up and down the country. There are four volumes of the noble Lord's speeches in the Library, most of them delivered on behalf of the Conservative Party or in some capacity connected with it. Among the comparatively few connected with this function as Minister for Science I have been able to find some which strenuously deny that he has various functions which might be attributed to him, but not one which tells us what his functions actually are.
  This is a matter of real and considerable importance. We know that he is responsible for the research councils and that there is one field in which there is some definition of his activities—his control of the Atomic Energy Authority. But for the rest of it, what exactly does he do? I hope that we shall have an answer to that question in the course of the debate.
  I may suggest several things which he might usefully do and which are not those things which so far he has denied any night or wish to do. He was appointed towards the end of 1959 as Minister for Science and there was already in existence, and there still is in existence, the largest of the research councils, that is, the Council for Scientific and Industrial Research, which was constituted under the Department of Scientific and Industrial Research Act, 1956. That Council seems to have very many of the powers which, whenever it says anything about them, the noble Lord and the Parliamentary Secretary say are their powers.
  It is true that the noble Lord is empowered to give directions to the Council, but I can find no trace of his ever having given any direction to it or any other council. If they were given, I should like to know what they were and what the results were. It is this Council and not the Minister which, to quote the words of the Statute, is
  "… charged with the organisation, development and encouragement of scientific and of

  1529
  industrial research and with the dissemination of the results of such research, and … may in particular—

  (a) encourage and support scientific research in universities, technical colleges and other institutions; and

  (b) establish or develop institutions or departments for investigation and research relating to the advancement of trade and industry; and

  (c) take steps to further the practical application of the results of scientific and of industrial research …".

  These statutory duties are very wide and I have nothing but praise for the way in which the Department of Scientific and Industrial Research approaches its duties. Whether it moves quite fast enough is another matter, which I shall have to consider in a moment.
  I come to what I suggest the noble Lord and the Parliamentary Secretary ought to do between them. I should be the first to admit that they have very little with which to do it. They appear to have a tiny budget and a tiny Department. The remarkable thing about the Department, as has been pointed out on more than one occasion, is that it does not contain a senior scientist. The higher-grade officers appeared in the former Estimates, but in the present abbreviated form of the Estimates not one is mentioned.
  Although the numbers have been increased the main reason appears to be that 29 additional clerical staff, messengers and door-keepers have recently been added so that the double-decker bus in which the noble Lord claims to put his Department could now take his staff only if some of them stood. This is one of the noble Lord's favourite observations. It shows, I suppose, what pure thinking can do without outside assistance. Indeed, the noble Lord has treated us to eloquent and interesting speeches on the theoretical relations between Government and science, but when it comes to doing something about it I find it a little more difficult.
  I think that I can take the noble Lord's own definition in another place on 9th November, 1960, of what he regards his own Ministry and the Government to be responsible for in this field. He said:
  "It is to see that the country is adequately provided with a fully active scientific life on an adequate scale—that the gaps are filled and that the work is being done. It is not to do
  1530
  the work ourselves."—[OFFICIAL REPORT, House of Lords, 9th November, 1960; Vol. 226, c. 418.]
  Of course, it is not to do the work themselves. Nobody supposes for one moment, with all respect to the two very distinguished gentlemen concerned, that they are capable of doing the work of all the scientists in the country, or even of all the research councils. But what does that definition amount to? I should have thought that it amounts to precisely nothing.
  I turn from that to make suggestions as to what might be done and I make them broadly under three heads. First, there are scientific departments in a considerable number of Ministries and we tendered today the Votes of a number of Ministries as possible matter for discussion. We were told, in my humble opinion very rightly, that we could raise all we wanted to raise on this one Vote and we are doing so. But the list is incredibly long and I should have thought that the first of the Minister's duties, notwithstanding the extent of those departments, was to see that scientific advice was both sought and given on scientific questions which arise from day to day and also in the field of long-range policy.
  About eighteen months before the Minister was appointed, a Committee, originally under the chairmanship of Sir Claude Gibb and afterwards under Sir Sally Zuckerman, was appointed to consider the management and control of research and development. The Committee reported in July last year. It is perhaps characteristic of a good deal of Government literature in this field that the Report was made on 5th July, but did not appear in the Vote Office until six months later, on 18th December. When it arrived it proved to be a very good Report. It dealt, though rather late, with the prevention of the kind of thing that had happened with Blue Streak. It was a Report to the Minister for Science.
  The Committee will hardly need to be reminded that that was a project on which the Government wasted a very large sum of money before they decided to take it out of the Service field and translate it into civilian terms; in fact, use Blue Streak for purposes other than those for which it had been originally intended. The Report dealt both with

  1531
  the project and with the methods of dealing with its scientific aspects. "Scientific" is rightly used in a very wide sense when I say that, but in no wider sense than in the passage which I have read out of the remit of the Department of Scientific and Industrial Research. The question of how to deal with that project was also a matter which I should have thought ought to have been considered and which the Minister ought to have seen was considered properly.
  The Zuckerman Report made a number of detailed recommendations. I shall not go into the question of defence today, or into that particular question, but this was a case where the Minister for Science, on any view of the matter, ought to have seen that a proper scientific control was exercised to avoid the waste which actually occurred.
  I give another and very recent instance. The Minister of Health has recently had to answer Questions about a drug called thalidomide. This drug has had unforeseen and calamitous effects which have resulted in a considerable number of deformed births, a serious matter which, of course, the Committee will take very seriously. What steps were taken by the Minister for Science and the Medical Research Council, which, I suppose, is the appropriate body, to see that this drug did not come on to the market without proper scientific investigation? I know perfectly well that there was a scientific investigation, but it proved insufficient. Why did it prove insufficient, and why were sufficient steps not taken to prevent that sort of thing?
  I can give a number of other instances in which the responsibility of one department after another for scientific work has broken down and in which it does not appear that the Minister for Science has taken any hand to see that sufficient precautions were taken to seek and to apply scientific advice.
  I turn from that to a rather broader matter. It seems to me that the Minister's responsibility must also be to see to the money side, if I may put it in that way, and the organisation of scientific research in this country. I use those words widely. The noble Lord was appointed in October, 1959. It was not
  1532
  until long after that—I do not know the exact date, but I first heard of it in the spring of this year and the first public statement about it was made by the Parliamentary Secretary on 28th May— that a committee was appointed under the chairmanship of Sir Burke Trend, a high official of the Treasury, the terms of reference of which are exceedingly wide.
  I take the second of them because it is, I think, the widest:
  "To consider … what arrangements should be made for determining, with appropriate scientific advice, the relative importance in the national interest of the claims on the Exchequer for the promotion of civil scientific research in the various fields concerned"—[OFFICIAL REPORT, 28th May, 1962; Vol. 660, c. 960.]
  That is exactly the question to which, I should have thought, the Minister for Science ought to have applied himself a long time ago and to which he ought to have sought an answer. Yet, two and a half years after his appointment as Minister and an even longer time after he had his functions as Lord President of the Council, it becomes necessary to appoint a committee to consider it. This is a very remarkable story.
  What has the office of the Minister for Science been doing meanwhile? What steps has it taken to determine, "with appropriate scientific advice"—there is no doubt that it has that
  "the relative importance in the national interest of the claims on the Exchequer for the promotion of civil scientific research"?
  This is a vital question, and it is not merely a matter of money. Money, no doubt, is the form it takes in that committee, but it involves questions of manpower and the use of national resources—everything which the expenditure of money on a large scale necessarily involves.
  The question which that committee is considering is: how do we weigh the claims of incomparable sciences and incomparable skills? For instance, how do we determine how much is to go to biology, on the one hand, or to nuclear physics, on the other? What are the considerations which should guide us? If ever there was a political question, this seems to be it. It is somewhat remarkable that the committee should consist of two Second Secretaries of the Treasury, the Chairman of the University Grants Committee, the Chairman of

  1533
  the Advisory Council on Scientific Policy, the Secretary of the Office of the Minister for Science, a professor in Edinburgh and a gentleman who is, presumably, an industrial scientist.
  They are excellent people, and I have nothing to say against them. I am sure that they are very wise in their particular fields. But this is a political question, not a question which should be referred to a committee of that kind. Moreover, it is not a question which should be left standing for two and a half years before anything is done about it.
  When I ask what the noble Lord and the Parliamentary Secretary have been doing, I have this sort of thing in mind. They have not tried to answer that question, apparently, because they quite recently set up a committee to answer it.
  There are other questions; for instance, the question of space research. This arose a little time ago and was considered by the Advisory Council on Scientific Policy, which came to the conclusion, stated in two successive Reports, that expenditure in that field was too much for this country to undertake alone and that there ought to be an international effort. I do not complain about that. I am not discussing that sort of point. But that was a decision of the Advisory Council on Scientific Policy. We have no idea what the Minister has to say about it, although, of course, the allocation of considerable resources was involved. At present, the position seems to be that we shall have an expenditure of about £4 million or £5 million a year over a period of five years to begin with as our contribution towards the international effort.
  I do not say that that is the wrong way to do it. All I am saying is that this is a political decision, but it was made by the Advisory Council on Scientific Policy without, so far as I know, any direction or comment of any kind from the Government about it.
  I come now to a subject where one can be a great deal more critical of what the Minister and the Parliamentary Secretary have been doing. I mentioned just now the difficulty of, as it were, weighing the conflicting claims of different sciences and different skills. I have in my hand a Report from a body called the Ad Hoc Biological Research Committee which was set up by the
  1534
  Royal Society and presented its Report in November, 1961. The Report reaches some rather startling conclusions.
  Hon. Members will not need to be reminded of the importance of biology. Recent advances in biology in all countries have been quite remarkable. They have changed the whole outlook of medicine and medical research bath in the direction of avoiding disease and in that of curing it, as in one way or another we all know. The Report says:
  "Some general conclusions emerged from the work of the Committee."
  I shall not take them in detail. I take the second one:
  "Biological research requires much more financial assistance. Not enough biologists are being trained even to meet current needs and facililties in many laboratories leave much to be desired. It is considered that at least twice as much money as is at present being spent is needed at once if the country is to exploit the current possibilities in biological research."
  The Committee goes on to make other comments. It says that it is not a matter of redistributing the funds at present available. It says that the need for biologists has been underestimated, that the Committee on Scientific Manpower of the Advisory Council on Scientific Policy made a mistake in that matter, and so on.
  This is a Committee of the Royal Society. It consists of very distinguished people. It is true that, in the necessity of things, most of them are biologists; but they certainly have a claim. I want to know who decides what weight a claim of this sort is to be given as opposed to other claims.
  As I understand it, what happens is that, in one way or another, most of the innumerable agencies concerned go direct to the Treasury and they ask the Treasury how much they will be given. The Treasury tells them. I regard this as the wrong way of doing it. There must be a considered policy in the matter, and that policy must be the responsibility of the Minister for Science. He ought to be the person who, like other Ministers, is responsible for making demands on public funds, for weighing up the demands, and for presenting them more or less as a whole. Just as the Minister of Education, the Minister of Transport or any other Minister has his Vote and is a suppliant

  1535
  to the Treasury, so, in my view, nobody less central than the Minister for Science can possibly carry out these functions.
  If he does not do it, what happens? The Treasury takes over. The Treasury sets up, with one of its own distinguished civil servants at its head, a committee to consider the broad question of policy in regard to science. What have we a Minister of Science for if it is all to be left to the Treasury? I do not know what the man is doing.
  I come to the third question. I should have thought that we could describe the proper responsibility of the Minister in this way: to see that scientific work is not only done, but fructifies. I regard it as a kind of river that starts with pure science. It is watered on its way down with work done by way of applied science; watered again, by work done by way of development and, in the long run, flows into the pool of our common knowledge and plays its part in improving the standard of life and the possibilities of life for our fellow citizens. That is, I think, the object of it.
  It is perfectly true—I admit it at once —that that can be put more widely and one could say that this is only the national side of it and that particularly, in a matter of this sort, we must look at the advance of the world and not merely at the advance of our own country. But surely the functions of science nowadays are of fundamental importance, whether we look at it as a matter of national rivalry or regard it as a question of the advance of the human race.
  I sometimes feel that the Government look at science as a collection of rose bushes on which blossoms appear from time to time. There are passages in their speeches about encouraging the bright boy. It is really almost the only thing that we can get out of them as a principle. I am all for encouraging the bright boy; but science is not a collection of rose bushes. It is a kind of manure that we put into the ground that makes things grow, and, if we do not do it, things do not grow. If production in this country is falling behind in comparison with other countries, then the lack of development of scientific work and its application is one of the causes. I regard it as a very important one. Opinions may differ about that.
  1536
  The Federation of British Industries, curiously enough, thinks that is less important, but on this matter I do not think that I should accept its judgment. I do not think that the Federation is qualified to make it. I think that on any view of the matter we are getting rather behind. It is, I would say at once, exceedingly difficult to make comparisons with other countries. Their arrangements are different. Their qualifications, universities and institutions, and so on, are different, and one can produce figures which appear to be conclusive but which are really nothing of the sort.
  The Advisory Committee on Scientific Policy has tried to consider all this, and the only result it got was a comparison between this country and the United States. What it got out of that comparison was, broadly speaking, that the total proportion of the gross national product was much the same, but in the United States rather less of it is contributed by the Government and rather more by industry. It was a somewhat negative result. I am not at all certain that it was a sufficient result; that is to say, I am not sure that it asked itself enough questions.
  One of them is this. I know that it is almost commonplace, trite, a bit of a platitude, to say in a debate about science, or any other debate, that we have few natural resources and that the most important of our acquired resources is the individual skill on which we have always prided ourselves—the skill which extends from the skilled workman to the skilled professor. I hold and believe that to be true. I think that it is exceedingly important that we should not merely be level with the world in matters of this sort, but ahead of it, because in other ways we have not so much to rely on and our material resources are comparatively small.
  We are also a much smaller country than the United States and, therefore, I should have thought that since the units tend to be smaller and, therefore, the spread of a great deal of scientific work tends to be more limited, we should be well ahead of them rather than level with them in a matter of this sort.
  The United States is, of course, a far larger and wealthier country than this and a given percentage of its national

  1537
  resources is a far larger figure than ours. When we are dealing with a limited number of people, such as scientists, particularly skilled scientists, the fact that the total is so much greater in their case has its practical effects. We get this story of physicists, for instance. We had some figures from the Institute of Physics and the Physical Society the other day about scientists going to the United States, not because they get better pay but because they get better resources for their work there, and that is going on.
  We get another side to it. We get in this country very considerable contributions, hardly ever mentioned by the Government, from American sources. The scientists nowadays working in a university tries to get what he can from the Government and what he can perhaps from industry or from some similar foundation in this country, and he tries also to get it from the United States. We have never had any figures about these contributions. I do not complain of it; all the better. But what it does show is that the Government's contribution is not sufficient.
  I have other grounds for saying that. There appeared in the National Institute Economic Review for May an article which did not altogether please the Parliamentary Secretary when he was asked about it. I am not surprised. The article was a very detailed one and it summarised its main conclusions at the top of page 27:
  "… that British industry's research activity is very much less than American industry's on the more meaningful bases of comparison …".
  This is a question of comparison between industries.
  I recognise, of course, that there are other fields and that some of their conclusions were that
  "American industry's research expenditure is over five times as large as British industry's as an absolute figure."
  That is what one would expect. But it is also
  "Nearly three times as large per employee and twice as large as a percentage of net output. Taking the 350 largest firms in each country which do research, the average large American firm spends five times as much as the average large British one."
  If these are the figures, then on the question of scientific research in industry—
  Sir Harry Legge-Bourke: I hope that the hon. and learned Gentleman will complete the quotation by addling another conclusion which is come to, namely, that the research per unit of output is about the same in the two countries.
  Mr. Mitchison: That may very well be, but it does not really satisfy me in this matter. We have to deal with smaller units of production and we ought to have more research. The comparison that it works out evenly per unit of output seems to me to be really inappropriate. I would prefer the conclusion drawn by the writer of the article. The main conclusion is that "British industry's research activity is very much less than American industry's on the more meaningful bases of comparison." I think that is right. On a matter of this sort I would prefer the author's own summary to any that we may give. Perhaps I should not even have given the ones which I gave, but should have contented myself with the general conclusion.
  I now come to the Government's contributions. Here I wish to make a very strong protest. One of the important channels of contribution in this respect is university research work. We have it on the authority of the Advisory Council on Scientific Policy that in universities the proportion of money spent on research and the proportion spent on education are roughly the same; it is half and half. Presumably this refers to the scientific part. Therefore, research expenditure in universities is a very considerable sum.
  This expenditure is administered through the University Grants Committee. I know perfectly well that that Committee has done excellent work in the matter. It has not sought to tie universities or those who work in universities to particular projects. It has given sums of money without too many strings attached. Its work, obviously, has been done with great tact and care. I have not had the pleasure óf meeting any of its members, and I have no objection to it at all.
  When the Government are asked what the University Grants Committee has asked for by way of grants, the answer is, "We, the Government, like so many other Governments, refuse to say. This

  1539
  body is our adviser and our dependant in some form". I tell the Committee outright that I have been given the figures. I believe them to be correct, but I cannot quote them here. I have been told in confidence what the universities asked for from the University Grants Committee, what the Committee asked for from the Government, and what the Government finally "coughed up". Why should not we be given this information? If it has not been given before, is it not high time to reconsider the matter?
  I understand that this is the first time that the University Grants Committee, representing the universities in this matter, has asked for a sum considerably larger than the one which the Government finally gave it. This is a matter of the greatest public importance. Why are these figures refused? They have been refused both in the House of Commons and in another place on the narrow and, as I see it, mistaken ground to which I have referred. Surely we should be able to judge the Government's expenditure in this matter, the attitude which they taken and the reality of their protestations of affection and devotion to scientific work. This is a very good test, yet we are denied the opportunity to make it. This is not the only case. I feel that the whole machinery about science has far too many elements in it which are directed to concealing what has happened and which should, in the national interest, be published and made known.
  I now turn to industry. The last Report of the Department of Scientific and Industrial Research was almost entirely concerned with what is commonly called "the gap between research and development"—that is, the application by industry of the results of scientific research. In April this year, the same Department organised a conference on the gap between research results and their industrial application, a very important and vital point which we must consider today, since surely, if anything is to prevail, it must be the national interest and nothing else.
  I asked for the Report and was sent it. I was told that it was confidential, and I do not propose to refer to it beyond the very general words which I shall use in a moment. I do not think
  1540
  that I can refer to it, but I think that I ought to be able to do so, and I think that hon. Members should know about this sort of thing. This was a gathering of directors of research associations. They were told that they could say what they liked and that it would not be published. I object to their being told that. Why were they told it? They were assembled to give their opinions on a matter of real national importance. Directors of research associations do not keep hundreds of trade secrets.
  Sir H. Legge-Bourke: Before the hon. and learned Gentleman goes much further, I hope that he will consider the damage which he could do if he suggested that the directors of research associations should never meet together in private to discuss matters of national importance. He must realise that there must be good faith about this. Patents are very often wrapped up in this matter and companies subscribing to research associations are under some obligation to their shareholders. The hon. and learned Gentleman must not ask for these sorts of meetings always to take place in public.
  Mr. Mitchison: This was a conference convened by a public Department, the Department of Scientific and Industrial Research, in the exercise of its statutory functions to deal with a question which I regard as of the very highest national importance. I am sure that the hon. Member would agree about that. I do not propose to read out the comments of the directors on this, that and the other, but I say that no conference of this sort should be convened with a promise from the Department of Scientific and Industrial Research that none of the results would be published.
  The Parliamentary Secretary for Science (Mr. Denzil Freeth): Probably we can clear up this point. This was almost an internal D.S.I.R. conference, although the directors of the research associations are not paid directly by the Department. It was felt that, if we were to have a full and frank discussion without fear of any section of anyone's speech being quoted out of context, perhaps leading to difficulties, and that if we were to have a really hard-hitting conference going into this subject, then it was fairest and best to say that the

  1541
  whole thing would be off the record and would not be quoted. May I say as one who attended part of that conference that I think that it was very well worth while.
  Mr. Mitchison: I do not, and let me tell the hon. Gentleman why. This was not a private matter. It was mentioned in the Report of the Research Council and it was mentioned as one of a series of exchanges of view between representatives of Government and industry on either general policy or subjects of topical interest. I should have thought that this was obviously general policy. I do not share the hon. Gentleman's view that either he or his Department is entitled to say to these gentlemen, "You can say what you like. On no account will we publish it." I do not think that that should be said. If it is said that we cannot get information out of industrialists and research associations except by saying this to them, then the Government must take power to get it.
  Mr. Freeth: Surely the hon. and learned Gentleman's strictures would be valid only if such people were precluded from making the same remarks outside a conference if they wished their remarks to have publicity?
  Mr. Mitchison: It is not a question of what these no doubt distinguished gentlemen wish. This is a matter of vital national interest. Here we have a group of people, who, incidentally, are receiving public funds in most cases, conferring with representatives of the Government and they are told, "This will not be published". They should not be told that. If their views cannot be obtained in any other way, the Government must take power to get them and publish them.
  Exactly the same thing happened with the machine tool industry. There was an investigation into that industry which was not published, again because of a pledge of confidence. These pledges should not be given. With all respect to the hon. Member for the Isle of Ely (Sir H. Legge-Bourke), the national interest must overrule the interests of shareholders in these matters. We as a country and as a part of the world must ensure that there is no gap, or as small a gap as we can conceivably make it, between research results and their industrial application.
  1542
  We are entitled as the Parliament of the country to consider what is being done to shorten or to eliminate that gap. It is a matter of the highest public concern. When we get to questions of that sort I do not think that it is right for the Government to give pledges of confidence, any more than I think it is right for them to refuse to publish the demands of the universities and the University Grants Committee. There is a great deal too much hush-hush about this. It does not do any good in the long run, and, as the noble Lord himself pointed out in another place, it makes people incredibly suspicious about what is going on. If the results are not published they usually begin to leak and we get all sorts of wrong versions.
  It is very much better that on a matter of public policy the public should be entitled to know the facts, and, when there are relevant opinions, to know the opinions; and that right, in my opinion, overrides questions of private advantage or private convenience. It is really intolerable that on a matter of public importance, and of this public importance, we should be told that nothing can be said because a pledge of confidence has been given.
  I think that it is fair to add at the end of all this that I have read the report. Perhaps there is not as much in it as all that, but the subject was exceedingly important, and that is the point.
  I turn from that to mention one or two other things, though I must not take the time of the Committee much longer. I should like, first, to say a word or two about the research organisations themselves. This is a very small field at present—a very, very small field. The Government's expenditure on civilian research which probably amounts to about £100 million altogether ought to be made beyond the heads of that. Let me correct this. It is that sort of figure. It is only something between £1 million and £2 million which comes out of public contributions to the research associations. So the total expenditure of the research associations—I think that there are 52 of them—is about £8 million on the last figures.
  That is a very small effort, and I have no doubt that further steps ought to be taken. I am very glad to see that the

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  Council of Industrial and Scientific Research is taking some of these steps. Why I feel hesitant about it—and here I find my opinion shared by others—is because of the pace and the extent of the steps which are being taken. It really ought to go faster about the development projects which it is handing over to industry at present, and ought to go faster in the direction of advertising and pushing the advantages of the results of scientific research. Where it is necessary to amalgamate some of these units together, steps should be taken to do it. It has already been done in one case which will be present in the mind of the Parliamentary Secretary. I have very little quarrel with what the Council is trying to do, except about the speed and the extent of it, which seem to me to be insufficient.
  That is the only comment which I want to make on industrial research. I feel that, on the one hand, I have taken a great deal of time and that, on the other, I have not said half the things I wanted to say. I have not covered half the ground I wanted to. I have tried to show one line upon which one could really debate the matter, and the line does seem to me 4o be the proper relation between the Government and industry and science, particularly, perhaps, between the Government and science. I have given instances, but I have not mentioned atomic energy; others, no doubt, will.
  The broad question seems to me to be: what is the policy of the Government about science? Do they really care about it? Are they content to leave it to advisory councils to report to them? Are they content to leave it to Treasury committees? Are they content to leave the whole matter of the extent and degree of support from public funds to a Department whose proper business it is to control that extent? Are they, in fact, concerned to do anything in particular about the whole question?
  I repeat what I said at the beginning, and I say it with the deepest conviction. This is not merely a question of industrial advance. It is something which concerns far more than that. It concerns, of course, the health and the life of the people from the point of view of biologists and doctors. It concerns our natural resources. There is another
  1544
  committee on that matter. It is something which affects the whole country.
  My conclusion, when looking at the total of the figures, is that this effort which is being made does not appear to me to be sufficient, and I cannot help feeling that those who complain that biology, for instance, at present gets insufficient support are saying something which matters profoundly to the future of the British people and of this country of ours. Science is something which has grown, and assumed a different shape, in the years which I have been alive. It can fairly be said now to approach the sum of knowledge. With certain exceptions, one can say that matters of art are matters of beauty or of judgment, but this is the whole relation between man and his environment.
  This is the possibility which man has of advance. This is, or should be, the use which he will make of that possibility. Nothing could concern us more. Yet our policy appears to be vague, our knowledge very insufficient, the confusion considerable, and the cash rather short.
  4.36 p.m.
  The Parliamentary Secretary for Science (Mr. Denzil Freeth): I am very glad that we should have this opportunity today to discuss industry and the Government. The hon. and learned Gentleman the Member for Kettering (Mr. Mitchison) spent the majority of his time on science and the Government and very little upon industry. I shall have my proportions slightly reversed, because I do very much want to say some things about industrial research and the role of the Government. As I understand that the Scottish Grand Committee is likely to have a debate on research and industry in its purely Scottish aspect before we rise for the Recess, I shall, like the hon. and learned Gentleman, deal with the United Kingdom as a whole.
  Mr. Cyril Bence: Which includes Scotland.
  Mr. Freeth: Which includes Scotland, yes, but which includes other countries as well.

  1545
  The hon. and learned Gentleman criticised by noble Friend's office and its complementary federal structure of research councils. He seemed to think it was rather wrong that my noble Friend did not issue a large number of directives to the research councils. I think that I should have taken the issue of a large number of directives to the research councils as a sign of failure, as a sign that in fact the Government and science were at loggerheads, and not that they were working harmoniously together, and I think it is a very good thing that my noble Friend has not had to issue statutory directions under the Act to the D.S.I.R.
  Quite frankly, I was not impressed by the various criticisms which the hon. and learned Gentleman made and which echoed those produced by Crossbow in its current issue. As a founder officer of the Bow Group, I feel that I can mention its journal.
  Mr. Mitchison: May I say that they echoed even more closely some comments in an article in the new isue of the New Scientist?
  Mr. Freeth: I have them by me and I may refer to them as well.
  It is perfectly true that my noble Friend's office is small. It is reinforced for all practical purposes—and this is something which I think the hon. and learned Gentleman forgets—by the 1,000-odd members of the headquarters staffs of the research councils and of the Atomic Energy Authority, many of whom have important scientific qualifications. I myself see no advantage in destroying the present structure, which has grown up gradually over the past forty years, with forty years' of cumulative experience behind it. It is in fact the model and admiration of many another country's Governmental-scientific organisation. The demand that my noble Friend should control scientists in the sense of bossing them about would result in destroying their confidence in Government and losing their co-operation. Unless we are to have scientists administered, in so far as one can use that word, by research councils, how can we avoid the inevitable difficulty of preventing politicians from bossing scientists about?
  Mr. Mitchison: I hope that the hon. Member will not attribute to me any more things which I did not say. I asked him one question—what does he do? I hope that he will answer that.
  Mr. Freeth: I am trying to suggest that the hon. and learned Member is barking up the wrong tree—I do not know whether it is one of his rose trees—by suggesting that we should have a Minister for Science to control science in the same way as one controls administrators in a normal Government office.
  The hon. and learned Gentleman said that my noble Friend's duty was to see that scientific advice was properly taken in the decisions which Governments make. I accept this. But I do not think that it necessarily follows that this is not happening because one does not read it in the newspapers or because it is not specifically mentioned by my right hon. Friend every time a decision is taken.
  Secondly, the hon. and learned Gentleman does not understand the relationship between the Advisory Council on Scientific Policy and my noble Friend. He quoted the views expressed by the Advisory Council over the forms which Britain's space research activity should take. It is right that my noble Friend should ask the Advisory Council for its views, for its members are his main advisers on general scientific policy. But the decision whether this country should have a space research programme, and the form that it should take, and its size, is a decision which has to be taken by the Government and they, not the Advisory Council, take the responsibility.
  Then we have the difficulty over dividing the money between the various research councils or various disciplines for research. I think that the hon. and learned Gentleman assumes that my noble Friend does not take any interest in any financial negotiations which may go on between the research councils and his colleagues at the Treasury. In fact, my noble Friend is immensely interested in negotiations which go on. But, in the last resort, when we come to the problem of deciding which project to support, there are two principles involved. The first is the principle to which the hon. and learned Gentleman referred as the bright-boy principle—in other words, that the only way to

  1547
  make certain that your standards are high and that you have economy in a way in which economy is possible, practicable, reasonable and acceptable is to support the bright boy with the first-class ideas. My suggestion is that it is my noble Friend's job to see that people with first-class ideas get the support which they should have.
  Of course, science today is not merely a question of supporting people in small laboratories and paying their salaries. We are in an age of big science with very large machines. These use national resources not only of scientists and of engineers but of material, such as in the electronics industry. It is because my noble Friend and the Government felt that it was time that we should have a fresh look at the whole question that the Committee under the chairmanship of Sir Burke Trend was set up.
  The hon. and learned Gentleman also referred to the Zuckerman Committee and complained that he had had no statement upon the subject. All the bodies for which my noble Friend is responsible and the civil departments which under-take or use research on a considerable scale have now considered the report. The Report in general has been accepted and is being applied by all these authorities. There are, of course, wide differences of circumstance between different research stations and laboratories, and some discretion must be given to directors to modify their practice in accordance with local conditions. But, in general, the Report has been accepted as laying down a standard of practice which should be observed where it is not already in operation.
  The main exception is that not all authorities agree that what the Report defines as "pure basic" research should be undertaken in Government stations only in special circumstances. In particular, the Medical Research Council hold strong views on this point. My noble Friend considers that the distinction between "pure basic" and "objective basic" research, while clear in intention, is not easy to define precisely in individual cases, and that research councils must have a considerable degree of discretion to undertake basic research of any kind which is relevant to the field of research for which they are responsible.
  Mr. Mitchison: Would the hon. Member or his hon. Friend who is to speak later tell us whether the Government accept the recommendations that everything possible should be done to encourage interchange between posts in the scientific officer class and in the other Civil Service classes, in particular the administrative class?
  Mr. Freeth: My hon. Friend the Financial Secretary will deal with that point, among others.
  I should like to turn from the general concept of the office of the Minister for Science to science in industry and the rôle of the office and the department in this concept. I believe that this is one of the most vital questions which face us today. I believe that industrial growth, together with a rising standard of living, can be achieved only if we can increase output per man and increase that output at competitive prices. It is mainly by the application of science to production, by which I mean the discovery of fresh knowledge about materials and processes, and the application of existing knowldege to existing industrial problems, that we can provide a basis for real and non-inflationary expansion.
  Some industries are what we call science-based. These already spend a considerable amount of money on research and development, and I believe that their record shows that science pays. Whereas production in manufacturing industry as a whole increased by less than 50 per cent, in the 1950's, production in chemicals, electrical engineering and aircraft and vehicles nearly doubled. The effect of this can be seen, too, in the structure of this foreign trade, where goods with a high technological content play an increasingly important part in the export drive. In 1938, goods falling into the categories of chemicals and petroleum products, mechanical and electrical engineering and other manufactures of metals, scientific instruments and aircraft and vehicles, accounted for about one-third of British exports. By 1950 they accounted for about half and by 1960 for nearly two-thirds.
  But the rôle of science in industry—and this I should like to make plain—does not depend merely upon producing a product which is the result of fresh discoveries in the scientific field.

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  Science can be used by even the most traditional industry in this country. But it will be used only if those who direct industry themselves have minds open to scientific ideas and scientific methods. Today none of us can have cobwebs in our mental attics. The scientific approach is also needed in management. I admit that management is possibly as much an art as it is a science, but there is a lot of science knocking at the door of management today. For example, there is a scientific way of getting information about the changing attitudes and conditions of work and morale. There is a scientific way of assessing the effects of incentives upon workers and their motivations. There is operational research, born in the last war, and still very young, but it is bringing science into management.
  Of course, operational research is difficult to define. I am told that there are no fewer than 19 officially recognised definitions. It is said that at one time the work of defining operational research was to be the subject for a Ph.D. thesis for one of the Continental universities. But it can teach management how to plan scientifically the level of stocks which should be held, the layout of a factory or office, and even the maximum profitability which can be obtained from a farm. The Industrial Operations Unit of the Department of Scientific and Industrial Research has even given advice on how a burial ground can be operated more efficiently.
  In 1958–59, according to the Report of the Advisory Council on Scientific Policy, our national expenditure on Research and Development was about £478 million. Two-thirds of this was spent by the Government, either through Government-financed institutions or through contracts with private firms. Industry spent about £270 million, of which some £150 million was derived from Government sources. We are now reviewing again our national resources and the next triennial review is in progress.
  Mr. Mitchison: Since what we are discussing today is civilian research, can the hon. Gentleman give the figures for that, excluding defence?
  Mr. Freeth: I cannot give any figures in advance of the Report of the Advisory Council on Scientific Policy, from which I took these figures.
  That leads to the question of the role of the Government in civil science in industry.
  Mr. Douglas Jay: Since the hon. Gentleman has given the figures, will he say how much of them relates to defence? I understand that it is more than half.
  Mr. Freeth: If the right hon. Gentleman refers to the Report of the Advisory Council, he will see the breakdown fairly accurately stated.
  We have to create the conditions in which industry can increase its scientific activities. This means, first, producing from the educational system a sufficient supply of well-educated scientists, technologists and technicians. We shall need not only the increasing number of scientists to which the Committee on Scientific Manpower referred, but we shall also need a large number of technicians.
  I wonder whether it is wise in the modern State for us to have a situation in which more than half of our technicians have no nationally-recognised qualification. The qualified and skilled technician is a key man or key woman in industry. My noble Friend has therefore asked the same Committee to undertake an inquiry to see exactly what we have today in the way of technicians, what we shall need and what we look like getting. We also need to modernise our methods of producing these people.
  Can we afford a system of apprenticeship under which many a youth gets no systematic instruction but will none the less be called skilled after five years, with no other test than that of his endurance in having gone through that period? Leaving on one side the inevitable delays between courses of training which occur in Service life, I have worked it out that it took me less than twelve months' instruction to get my wings as a pilot during the war. Does it really need five years to make a bricklayer, a carpenter or a fitter? We need more of all these people.
  Of course, most boys start apprenticeship between the ages of 15 and 16 and

  1551
  it would be unscientific to leave that out of account. Nevertheless, the teaching of a skill quickly by modern methods of training and then the application of that skill is probably one of the least used techniques in industry. It is probably also one of the most needed.
  Mr. Austen Albu: I am not sure what the bon. Gentleman is talking about. He said that there would be another inquiry into the training of technicians. He is now talking about the training of craftsmen. Is the inquiry to consider the training of craftsmen as well as of technicians?
  Mr. Freeth: It is primarily the training of technicians. The question of craftsmen is being considered.
  Mr. Albu: Does that mean that responsibility for the supervision of apprenticeships and conditions, and so on, has been taken from the Ministry of Labour and given to another Department?
  Mr. Freeth: No. It is the responsibility of my noble Friend to ask for and to take advice from the Advisory Council on Scientific Policy. One of that Council's committees is the Scientific Manpower Committee. With the agreement of his colleagues in the Government, my noble Friend has asked that Committee to undertake the same exercise in relation to technicians as it undertook in relation to scientific qualified manpower.
  Mr. Albu: But not of craftsmen?
  Mr. Freeth: The question is being considered. As yet, however, the Committee has not been asked to undertake it.
  In the second field, to do with the type of education, at the instance of my noble Friend the D.S.I.R. has recently set up a Committee under the chairmanship of Mr. G. B. R. Feilden, F.R.S., a member of the Research Council, with the following terms of reference:
  "(1) to consider the present standing of mechanical engineering design in relation to the United Kingdom engineering industry and practice overseas; and
  (2) to recommend any changes which are likely to result in improved engineering design of British products, including, in particular, changes in education and training."
  1552
  Thirdly, we must promote the growth of fundamental knowledge in our universities and other institutions. Finally, we must help industry to exploit the fruits of scientific knowledge. I say "help industry" because it will be mainly the task of industry itself, who knows what its own problem are, to engage in the application of science and in the research which is relevant to its own field of work.
  I accept that the Government should do much to help, and, indeed, they do. The results of the expensive research undertaken far defence and other Government services is often of value to civil industry. The Atomic Energy Authority's civil programme is exploring a very new and difficult field of technology where the objective is of general national interest. But the Atomic Energy Authority's main function is to carry this research and development to the point at which utilisation on a commercial scale is feasible, and then to transfer further exploitation to industry and the generating boards. Atomic energy is a special case where a major civil development in a new field is beyond the resources of industry.
  Leaving aside rare cases of this kind, there is the question of how the Government should assist private industry, subject to the general principle that research and development is properly the responsibility of industry itself. Here, the Government's main instrument is the Department of Scientific and Industrial Research, which has, broadly, two lines of approach to the problem.
  The first is to encourage and assist research associations set up by individual industries for co-operative research. Such organisations should be increasingly financed by industry as they develop. The part of the D.S.I.R. is to encourage their formation and to assist with a financial grant. The second is to undertake in Government stations research into scientific problems which are selected for their relevance to the long-term needs of industry. The D.S.I.R. is also responsible for giving research grants to universities, some of which are for work which is of economic promise. The expenditure on grants of all kinds by the Department and in its own laboratories was about £10 million in 1958–59. This year, it will be £20 million, an increase of 100 per cent.

  1553
  But the value of the sum spent is out of all proportion to the figures. I have now visited all the fifteen laboratories of the Department and I have a high opinion of their work. These will cost this year, together with the National Lending Library for Science and Technology, about £9½ million. They give direct benefit to industry. For example, the Forest Products Research Laboratory introduced a new method of kiln seasoning of timber, thereby shortening the seasoning period from five years to one year. The consequent saving of working capital to industry has been estimated to be of the order of £40 million. The same is true of the National Engineering Laboratory and a number of other laboratories.
  Of the research associations, it is possible to quote a number in which direct benefit to industry has been given. I admit that some of them are still far too small. At the instigation of my noble Friend, a thorough review of the research associations and methods of Government help is being undertaken. A report of the Industrial Grants Committee of the Council on this subject will be published shortly.
  Today the research association movement is definitely a paying concern. Dr. Hill, the director of the Shirley Institute and Chairman of the Committee of Directors of Research Associations suggested in a recent paper that industry each year got a return worth £100 million for the £8 million which the research associations spend. I do not want either to confirm or deny this figure, but I am certain that the benefit is immense. To take merely one example, as time is getting on, there is the case of a furniture manufacturer who is now saving £17,000 a year and marketing a better product as a result of new construction methods pioneered by the Furniture Industry Research Association.
  Certainly today we are trying to have the greatest degree of flexibility in the research association movement. In addition to the basic subscriptions, many of which are, I think, far too small, industry can increase the pace of research in which it is particularly interested by paying special contributions for this purpose. A number of research associations undertake sponsored confidential
  1554
  research on an economic basis, and I hope that this trend will continue to increase.
  Some are most earnestly considering the position and what will happen if we join the Common Market. Some already admit European firms as associate members. The day of full membership may well not be far off. The Felt Research Association is considering changing its whole character in order to become, in collaboration with European firms, a European centre for research for the felt and hat industry.
  The job of Government in trying to help industry must be particularly directed at that area where industry is not conducting a great deal of research itself. It has been suggested that this would be helped if more generous tax allowances were given. My hon. Friend the Financial Secretary dealt with this point last week in the debate on the Finance Bill. He pointed out that Britain is the only O.E.C.D. country, apart from Germany, to write off scientific research expenditure at specially accelerated rates. I would draw the attention of hon. Members to the recently published O.E.C.D. Report which covers fourteen countries and deals with this subject.
  In some industries there will from time to time be financial stringency, but I do not think that here we are really talking about sums which are so large that industry cannot afford them. If an investment of £6 million by industry in the research association movement shows an annual benefit, as it does according to Dr. Hill, of £100 million, the injection of, for example, only a further £6 million when company profits run at over £2,000 million a year after tax, is not a very great thing to ask, and it would revolutionise the whole picture.
  When we come to men, the position is somewhat different. There is at the moment a shortage of qualified men and women, but some of this apparent shortage is not merely a question of having the right number of qualified people but is also a question of the quality of the people themselves. The present output of qualified scientists and engineers is about 17,000 a year. In five years' time this will rise to about 23,000, an increase of more than one

  1555
  third. This progress will continue into the 1970s. Today, therefore, we stand at the beginning of a great decade of opportunities in this respect, an opportunity to get a great infusion of good and well trained brains into industry. Upon our success in getting them there, keeping them there and using them fully our industrial prosperity must depend.
  The Government will continue to play their part on behalf of the students, the D.S.I.R., the work of the research associations and the National Research and Development Corporation. We shall continue to do our best to deal with the problem of communicating the results of scientific and industrial research—the problem of closing, as the hon. and learned Gentleman put it, the development gap. The Scottish Mutual Aid Scheme for sharing scientific equipment is already a success, and a similar scheme has been launched in Wales. Both of them are under the D.S.I.R. I believe it is vital that the six regional technical information centres should be continued and expanded. These are for the benefit of firms in the region, and there is no reason why over the long term they should be financed by the taxpayer and not by those who will profit financially by their existence.
  The crossing of the development gap is not a matter for public enterprise alone. It is a combined operation by management and Government, and the latter are seldom in a position to provide the commercial acumen which distinguishes between a fine programme of applied research and a potential winner in the export trade. I was pleased to discover that this is being increasingly appreciated, for example by the formation of a private development company, Technical Development Capital Limited, under the chairmanship of Sir John Benn, who, according to The Times today, has given a most encouraging report of the first six months of the company's existence.
  The hon. and learned Gentleman stated that he hoped to deal with a number of other subjects but had not time. I am in very much the same position. I believe he wanted to say something about the Atomic Energy Authority. So do I, but I do not think that I have time to go as fully into this subject as
  1556
  I should like. However, I hope that hon. Members will have read the Report of the Authority which was published last week. I believe that this shows the very excellent advances that are being made by the Authority in the field of nuclear research and particularly in the field of the development of various reactor systems.
  The Authority's job in all this is to be at the beginning. The Generating Board's will be at the end. The Authority's job is to look many years ahead into the needs of the future. It has to choose between many lines of development which could be followed were there no limitation on resources. The limitation on resources is just as much in men as it is in money. The Authority has to pick the winner not merely before the race starts, but, if possible, before the horse has been born. I assure hon. Members that the programme of the Authority's research is continually under review and will be modified as occasion demands and as new opportunities for exploring new avenues open up.
  Mr. Albu: The hon. Gentleman is not a public relations officer. Has he not taken any account of the very serious conflict of views now existing between the industry, the Authority and the Generating Board? Has he absolutely nothing to say on this matter?
  Mr. Freeth: I should have thought that if the Opposition thought these matters were so serious they would have figured in the hon. and learned Gentleman's speech, in which case I should have answered them. As the hon. Gentleman has now brought the matter forward, I am happy to say a word or two about it.
  I have seen it suggested in the Press that, for example, the Authority should cease to be responsible for research into and development of new reactor systems and that the Generating Board should take this over. Frankly, I think that is a thoroughly erroneous concept. I believe that the Authority's work on the magnox reactor has been an enormous success. Now that work is diminishing, and this is right, because the Generating Board's laboratories at Berkeley and those of the Consortia can be expected to take over an increasing part of the work of exploiting the potentialities of

  1557
  this type of reactor. This is a situation where such development is sensible and in accordance with what has always been intended.
  With regard to the advanced gas-cooled reactor, to which at present some 26 per cent. of the Authority's work on reactor development is devoted, we are not yet in a position to say that this reactor is better than, for example, the Canadian CANDU reactor, nor is one in a position to say that the Canadian CANDU reactor is a better reactor than the advanced gas-cooled reactor. It seems to my noble Friend and myself that it would be entirely premature to make any final decision at the present moment, but I am certain that it would he very wrong for us now, merely because some people do not feel as optimistic about the advanced gas-cooled reactor as they did a few years ago, to throw it over at this stage of development when we are, in fact, just about to discover what sort of a tool it will prove to be in practice in the generation of electricity. I can only say that after talking to the members of the Authority and having visited the reactor itself, I came away perfectly convinced that here we had something which well repaid the large amount of work, research and devotion which has been put into its development.
  Mr. Mitchison Mr. Mitchison: Who will be right?
  Mr. Freeth: The hon. and learned Gentleman asks who will be right. We cannot prove it now.
  Mr. Mitchison: But the hon. Member has been told about a conflict of opinion. He knows it perfectly well. What are his views about it?
  Mr. Freeth: I am trying to tell the hon. and learned Gentleman that to my mind the time is not yet ripe when we can resolve this conflict, because in the last resort we do not now have to say whether we will have one reactor or another. We can afford to wait until it is possible to get performance figures of both the CANDU and the advanced gas-cooled reactor in time for us to be able to decide which to put into the atomic power station programme.
  Mr. Mitchison: I am sorry to interrupt the hon. Gentleman again, but, in view of the situation in the coalfields
  1558
  —this is a conflict between the conventional stations and the atomic stations—have we time to wait?
  Mr. Freeth: The hon. and learned Gentleman is questioning me on the whole of the Government's power programme. This is the responsibility of my right hon. Friend the Minister of Power. I am only responsible, in so far as I am responsible to this House, for the work of the Atomic Energy Authority and the advice which that Authority can give on the reactor systems which it is able to develop for the power authorities to put into action.
  Mr. Robert Carr: Can my hon. Friend tell me what attempt is made to inject long-term scientific factors into the consideration of these matters by my right hon. Friend the Minister of Power?
  Mr. Freeth: We work very closely with the Ministry of Power, and I can assure my hon. Friend that we are continually talking over these matters between us in order to make certain that the right decisions are finally made.
  I should like to end on one general note in relation to science in industry. I think that the rôle which the Government can play here is very often the rôle of being propagandists, whether divine or not, I do not know, but it is a very important rôle, for this reason. Science can only be used in industry by those people who believe in it, by firms which are intellectually convinced that the application of science and technology to their affairs is a good thing and in their own interests. This is a state of mind, and we cannot inculcate it either by bribery or coercion.
  Like all attitudes of mind in the community, everything depends upon those at the top. My noble Friend and I were disappointed to discover that at a recent research conference of the Federation of British Industries at Eastbourne, only two chairmen of industrial companies were present; one the present chairman of the D.S.I.R. Council and the other his predecessor. We could wish that more of industry's top brass were in closer contact with what is being done in the D.S.I.R. and in the research associations. The ideal situation would obviously be one in which the directors of the companies in this country were

  1559
  knocking on the door of my noble Friend's office, at the door of the D.S.I.R. headquarters and at the doors of the directors of the research associations, offering more and more ideas for civil development contracts. This is a new departure since our debate last year, and two of them have already been let and a third in electronics is now under discussion.
  After all, it looks as though within a decade this nation will, for the first time, have sufficient qualified scientists, engineers and technologists to complete the first stage of our second industrial revolution. My reason for saying this is based on the report on scientific manpower and the plans which have been and are now being carried out by my right hon. Friend and the Government. I believe, in fact, that we shall have this, and, what is more important, that we shall make good use of it.
  Mr. George Thomas: May I ask the hon. Gentleman whether he has read the report of a joint conference of technical teachers and the National Union of Teachers, which certainly did not share his optimism about the number of trained teachers available?
  Mr. Freeth: I have read the report to which the hon. Gentleman refers, but I was referring to the whole scientific picture and not merely to the question of teachers, vitally important as that is.
  5.14 p.m.
  Mr. Norman Pentland: I am glad to have the opportunity to take part in this debate, because, like the Parliamentary Secretary, I want to concentrate at some length during the course of my speech on the need for a more extensive concentration on scientific research in industry.
  I should have thought, and I say this quite seriously, that in a debate of this kind, concerned with science in industry, at least we should have had some representative of the Ministry of Power present on the Front Bench opposite. In regard to our energy-producing industries, in which science has a great part to play, and the Parliamentary Secretary has already referred to the nuclear energy programme, I should have thought that at least the Minister of
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  Power, or, possibly, his Parliamentary Secretary, would have been here this evening in order to wind up the debate on this very important topic. I say to the Financial Secretary to the Treasury, who I see looking at me, that I respect him very much, and, indeed, his ability, but, even with all his great ability, I am quite sure that he will not be able to contain within his speech all the factors in relation to the problems of increased scientific research into the energy-producing industries of this country; and some of us will want to refer very much to that topic this evening.
  I want to place particular emphasis on the need for further scientific research into the coal industry. I do so because, while I admit at once that I am speaking as a layman in this highly specialised field, I believe that the coal industry offers great possibilities and potentialities to scientists and technologists on how to promote more uses for coal and bring about greater efficiency in coal-producing methods. Everyone on both sides of the Committee will agree that the greater the success in the field of coal utilisation, the better the possibilities would be of achieving and maintaining a healthy national economy.
  Therefore, we have to ask ourselves these questions. Is sufficient being done in this field today? Is sufficient scientific research being entered into so as to enable this country to keep pace with other advanced coal-producing countries of the world? I have particularly in mind the vast coal-producing countries of America and Russia. I do not think that we are doing so. The Parliamentary Secretary referred to the part which private enterprise had to play in the encouragement of its own scientific research, but he did not say anything at all about the part the Government should play in encouraging and assisting scientific research and investigation in the nationalised industries.
  I have here an ally, because the Minister of Power himself must have explained his views to the Advisory Council on Scientific Policy, according to its Report for 1959–60. In the Annual Report of the Advisory Council for that year, on page 9 and in paragraph 24, I find this passage:
  "We agree with the view put to us by the Ministry of Power that, having regard to such

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  estimates of cost trends as can be made and to the problem of the size and continuity of our indigenous coal industry, it is justifiable to strengthen research effort on coal utilization."
  The Minister of Power himself at that time must have been aware of the fact that there was an urgent need to intensify research into coal utilisation. I would agree with what was in the mind of the Minister of Power at that time—that if we are to improve our position, long-term programmes of research should be initiated at once with the object of finding new outlets for coal. In promoting this in a nationalised industry, I am sure that the Parliamentary Secretary is bound to agree that everything depends upon Government policy and on Government assistance and support.
  In March, 1961, the Labour Party introduced a splendid document entitled "Science and the Future of Britain". I know that it was derided by certain people on the opposite benches, and I think it would be too much to hope that the Government would accept any of its recommendations, but it would most certainly be in the national interest if they did.
  The aim of the document was to draw attention to some of the major problems facing Britain today and to what we could expect in the future. One part dealt with science and research in relation to industry, and it had something to say on page 9 about the fuel and power industries. It should interest my hon. and learned Friend the Member for Kettering (Mr. Mitchison) who, in his splendid speech today, referred to comparisons between this country and the United States. It said:
  "The mechanical energy per head of the population is a simple index of the standard of living of the people. Here in Britain we have 2½ horse power available per man. In the U.S.A. it is 8½ horse power."
  I do not think that anyone in Britain can be satisfied with that disparity. Therefore, we must ask ourselves what we can do about it and what Government policies should be introduced in order to close the gap. We on this side of the Committee have said over the years that one of the Government's greatest mistakes is that they have allowed, and continue to allow, the nationalised industries of coal, gas, electricity and atomic energy, along with
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  the private oil companies, each to go it alone. They pursue different and competitive lines of action. One of the tragic results is that there is no real coordination of research and development in our energy-producing industries. This is disastrous in a highly mechanised country like ours.
  It should be obvious that, if we are to have a more intensified study conducted into such questions as coal utilisation methods, far more will have to be done by the Government by way of further financial assistance and support and by a reconsideration of their fuel and power policies. Only then shall we be able to say that we are taking full advantage of this country's greatest natural asset.
  Having said that, I would not pretend that increased scientific and technological research would solve all the problems in the coal industry. Far from it. But I would claim that an accelerated programme of both short and long term research is vitally necessary, not only in the interests of the coal industry itself, but of the economy at large. For who knows but that it is quite possible that, as a result of scientific research and investigation, new industries may be born in areas such as Durham, Scotland and South Wales, opening up a new future for them and bringing new hope? These industries probably would not be competitive with the coal industry but complementary to it, working with it in harmony.
  I do not want to be misunderstood. I do not under-estimate the splendid work being done by the National Coal Board in this direction. All of us who have worked in the coal industry for any length of time fully appreciate the expansion of research undertaken by the Board over the years. I can bring to mind without going into great detail the first-class results from such research departments as the Mining Research Establishment, the Coal Research Establishment, and the Scientific Control Establishment, to name a few. All of the people in these departments deserve our praise for what they have achieved over the years over a wide range.
  But as far as I can understand—indeed, I know this to be a fact—they are hampered in their work and from

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  giving full scope to their activities because they have been influenced, and indeed directed, to be appreciative of economic considerations in the coalmining industry. This is a most unfortunate state of affairs. The same position exists—and some of my hon. Friends will refer to this at greater length—with extra-mural research carried out in universities and technical colleges, where splendid work is also being done. The scientists and technologists in these establishments, are still hampered and unable to give full scope to their activities.
  It is obvious that the Government themselves must bring forward the initiative for our research scientists if we are to achieve the results which will enable us to keep pace with such coal-producing countries as America and Russia. I was in Russia in 1960 with the Inter-Parliamentary Union delegation. During our stay in Moscow, I talked to some mining engineers, together with leaders of Russian mine workers.
  Our discussion got round to how the Russians are entering into research for further outlets for coal and to coal utilisation methods being used there. I found that in their universities and technical colleges they are far ahead of us in this. The Government have a lot to do here, in this coal producing country, to keep pace with Russia and America.
  Mr. John H. Osborn: Did the hon. Gentleman see the result of that research in Soviet coal mines? Was he able to see what was happening as a result of this research? Or did he merely have a discussion about research associations?
  Mr. Pentland: We just had a discussion. I was not in the coalfields themselves. But the facts are obvious, for we receive reports in this country. I need not go into detail, but the National Coal Board does have certain information about research in Russia. There is no doubt that, even taking output per man, the Soviet Union will be far in advance of us in scientific and technological research if we do not do something about it. Perhaps the Financial Secretary will tell us what the Government
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  intend to do to broaden the activities of our universities and technical colleges in research. My information is that a lot more could be done.
  The Government have a vested interest in coal utilisation for more reasons than one. In the lifetime of many of us here, it may be that instead of being so concerned about coal exploitation we shall have to be concerned about coal conservation. We may have to pay high regard to how we are to conserve our coal resources. This is not just my opinion. It is the considered opinion of many of the world's leading fuel experts. As far back as 1952, a report by the president of the United States Materials Policy Commission—known as the Pabey Report—covered United States and free world fuel requirements up to 1975. In Vol. I of the Report, on page 129, we find this statement:
  "Sometime beyond 1975, and conceivably before then, coal's percentage share can be expected to begin rising as coal is obliged to take over from petroleum and natural gas a larger share of the burden of increased demand for energy. Meanwhile it probably will pay industry in the years immediately ahead to exploit vigorously the opportunities in coal, thereby relieving the drain on more limited resources and conserving them for higher value specialised uses."
  That was reported to the American president in 1952. Yet in 1957 some misguided people in this country—including some hon. Members on the benches opposite—were actualy forecasting the end of the coal industry.
  Then we had the statement by Sir Harold Hartley in a well-balanced speech which he made in London on 19th January, 1960, when he was reported as saying:
  "There is no question but the world reserves of coal are much greater than those of oil and natural gas. The present investment in our British coalfields will pay a handsome dividend. I am told that some of the big oil industries in the United States are investing in coal. Nuclear electricity can do many things but it cannot produce the compounds of carbon that in so many ways are playing a larger and larger part in our modern way of living."
  So one could go on. There is no doubt that the conservation of coal is giving serious concern to many of the leading fuel experts in the world. I read recently that fuel experts in West Germany have already informed the Federal German Government in the Bundestag that they deplore the haphazard closing

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  down of so many pits in the Rhur coalfield. We may have a problem of our own in this country. It has always been my belief that any British Government, no matter of what political colour, has a responsibility not only to the present time and the immediate future but also to posterity. It could be that in the long run we shall deplore the closing down of so many pits in the country because immediate economic circumstances determine that they should be closed. I will leave that point, however, as I am sure that if I pursue it further I shall be ruled out of order.
  I am trying to impress on the Government how vitally necessary it is for them to assist the National Coal Board far more than is done at present in order to enable it to expand and develop still further scientific and technological research. Until this is done, I repeat, we can never be satisfied that we are making the best use of the greatest asset which this country possesses.
  I wish briefly to refer to another aspect of the coal industry in which I believe that scientific research could play a most important part. I refer to the very important matter of promoting greater safety in our coal mines. Let me say at once, in case there be any misunderstanding, that I do not for a moment underestimate the splendid work done by the National Coal Board in this direction. Before I left the pits, almost six years ago, I saw the great advances which have been made in improving the standard of health and safety in our pits. I think it true to say that in our attempts to make British coal mines safe we compare very favourably with every other coal-producing country in the world. Having said that, and despite the impressive improvements which have been achieved by the National Coal Board over the years, I still think that there is a tremendous amount to be done. I was very pleased to see that in his presidential address at the union conference at Skegness the president of the National Union of Mineworkers paid particular attention to this question of safety. It was quite right and proper that he should do so.
  I was interested to note that in the Report of the Research Council of the D.S.I.R. for 1961, on page 14, under the heading of "Research Station" reference is made to the research stations
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  which receive grant aid and their activities are explained. I was interested particularly in the recommendation contained in the last paragraph which states:
  "We are convinced, however, that there is a need for further flexibility in order to ensure that the research facilities we have helped to create are used to the best advantage, and we have accepted the Industrial Grants Committee's recommendation that further grants 'earmarked' for special activities should be offered. These would be aimed at increasing the efforts of research associations on items or fields of research which were judged by the Department or the Government to be of particular importance. To take one important example, we feel that industrial health and safety is a field which should be given more attention."
  So the D.S.I.R. Council recommends that there is still a tremendous lot to be done and I think that a tremendous lot could be done.
  Those of us who come from the coalfields know that so long as coal mines have to be worked miners will have to work in dangerous conditions as is determined by the hazardous nature of the occupation. I hold the view that scientific research and exploration could reduce considerably those risks which the miners have to face. In the annual reports from Her Majesty's Chief Inspector of Mines is evidence to enable anyone who reads them to understand our concern about this aspect of the industry. On 1st February, 1961, the Chief Inspector submitted his report on the explosion which occurrred at the Six Bells Colliery, in Wales, in June, 1960, when 45 miners lost their lives. The report included this statement:
  "The explosion at Six Bells has emphasised that the ignition of a comparatively small accumulation of fire damp such as is likely to occur in any seam, may, in some circumstances cause a disastrous coal dust explosion."
  This is a very serious statement. The inspector says that it may in some circumstances. What are the circumstances? Are we satisfied that we are even reaching the possibility of finding an answer about circumstances which could exist in our coalfields today? Whichever way we look at the problems it is obvious that new methods of working which have been introduced into our coalfields, and at the coal face, and new methods for the transportation of coal, bring with them greater dangers and increased hazards for the miner. I am saying that science has an important part to play in this connection. I am

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  convinced that in the final analysis, given the assistance and opportunity by the Government, it could reduce those hazards considerably.
  I accuse the Government of failing to face their responsibilities over the question of scientific research into industry. I accuse the Government of failing to offer to the National Coal Board and to other research departments the maximum assistance necessary to enable them to carry out their vitally important scientific research into the many aspects affecting the coal industry. I believe that the Government are failing to face the challenge which exists in this very important matter. I hope, as a result of this debate, that the Government will have another look at the things that we have been discussing and increase the assistance given to the National Coal Board to enable greater scientific research and investigation to be carried out. I hope also that they will examine their fuel policies so as to co-ordinate the energy-producing industries to further the needs of scientific research. If that is done in the final analysis it will bring benefits and pay high dividends to the country. It will pay high dividends by improving our economic position and the living standards of our people, and at the same time bring greater safety to the men who win our coal in the British coalfields.
  5.41 p.m.
  Commander Anthony Courtney: The Committee has listened with great interest, as I have, to the hon. Member for Chester-le-Street (Mr. Pentland). I believe that hon. Members share my appreciation of his sincerity in discussing difficulties which Face the great industry which he represents. When he embarks on his experiences in Moscow, however, I hope he will not always take for granted everything said to him by the Soviet mineworkers' representatives.
  Mr. Pentland Mr. Pentland: I never do.
  Commander Courtney: Perhaps he might share the viewpoint of a Russian I had dining with me last night, who at one paint said, "Commander Courtney, I think you are pushing my leg." The hon. Member, I hope, will forgive me if I do not follow him closely into the industry
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  about which I have very little personal knowledge. I should like instead to take advantage of the wide terms of reference of the debate by raising a subject which is directly relevant to the Votes we are considering. It concerns the application of nuclear energy to merchant ship propulsion.
  I must admit that I was a little distressed to hear my hon. Friend the Parliamentary Secretary talk about the Atomic Energy Authority being at one end of a line and the Central Electricity Generating Board at the other. In view of our great interests as a maritime nation, he might not only have referred to the Electricity Generating Board, but to the Royal Navy and the Merchant Navy and their ships. I believe that we have an opportunity within the nuclear energy field of making a break through which perhaps will play a very great part in restoring the economic fortunes of this country through its natural medium, the sea.
  I must pay tribute to my hon. Friend the Member for Dorset, West (Mr. Wingfield Digby) for raising this matter in an Adjournment debate shortly before Christmas. It is not my purpose to touch very much on the naval aspect of the research and development programme for marine nuclear propulsion, but to discuss for a moment whether or not we are going the right way to effect the break through in marine nuclear propulsion for which so many countries are striving at present.
  It is possible to say that we are at a point of maritime history more important than the advent of the steam turbine, much more important than the advent of the marine diesel, and perhaps almost as important as the translation of the method of propulsion from sail to steam. We are searching, by dint of money provided by the Government and utlised by the Atomic Energy Authority, for an economic means of propelling merchant ships. We are engaged in this programme primarily on a national basis.
  The Committee will agree that it is right and proper that we should take part in the many international consortia working on this problem, but we should remember that, from a nurely national point of view, we have competitors who are working very hard on these

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  problems, nationally as well as internationally. It behoves us to keep our noses ahead in order that perhaps we can produce first the answer for which we all wish. I want to say a word or two about what our foreign competitors are doing in this field.
  I am afraid that we are inclined rather to hide our heads in the sand and refuse to admit, even to ourselves, the stark fact that the Americans have something like 70 nuclear warships of all kinds either authorised, building or acually in commission. They include not only submarines, but an aircraft carrier, a cruiser and two frigates.
  Much more important from the point of view from which I am speaking today, is the "Savannah", a merchant ship of approximately 20,000 tons specifically designed for nuclear propulsion by a pressurised water reactor. That ship is undergoing sea trials. Preliminary reports show it to be fairly successful at sea. The benefits of that experience are going directly back to the United States subsidised shipping lines which provide so much competition at the present time and which are likely to be such a competitor of ours in future.
  Our Western German neighbours have five subsidised schemes for different types of marine nuclear reactors, one of which involves the building of a ship at Hamburg, admittedly shared internationally, powered by an organically moderated reactor. It is being built for the specific purpose of investigating practical problems of marine nuclear propulsion. Euratom, in which we do not yet participate but may shortly, has four projects including the German one and the design of a tanker by an Italian group containing those famous names Fiat and Ansaldo. The European Nuclear Energy Agency has three ship projects in conjunction with the Swedes, the Dutch and the French. Design studies are being made of a 20,000 ton bulk carrier, an oceanographic vessel for the French and a 65,000 ton tanker.
  In Russia the icebreaker "Lenin" has been operating for several years with three pressurised water reactors. It is an example of Soviet cynicism that at the Atoms for Peace Exhibition at Geneva the "Lenin" should have been set up as an example of the pacific
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  intentions of the Soviet Union when in fact I think any naval person would probably realise that those three reactors are directly intended for submarine purposes and for the investigation of nuclear propulsion for the Soviet Navy. In Japan there are plans for a tanker and for a passenger liner, both powered by nuclear propulsion.
  This is a formidable list of what other maritime nations, and nations which perhaps are not primarily maritime in their thinking, are doing in this important respect. What are we doing? On the surface—I repeat on the surface, superficially—it does not seem that we are doing very much. For seven years the Atomic Energy Authority has been studying this important question. The study has been speeded up since 1959. Perhaps it is no coincidence that the great acceleration of this research and development programme came at the same time as the arrival on the scientific scene of my hon. Friend and his noble Friend the Minister for Science.
  In the last month or two we have had the welcome news of the allocation of £3 million to marine research and development, to be administered by a high-powered committee which represents the British Shipbuilding Research Association, Lloyds Register, and the shipping world as a whole. I very much welcome the width of the interests represented on that committee. Design contracts have been given to five different groups in industry, and the Government deserve our congratulations on three grounds for the recent progress made.
  In the first place, the Dunnett Committee, which administers this quite considerable amount of money, is broadly based, and that is most important for one special reason. This autumn, perhaps, a preliminary decision will be made to narrow the choice between certain reactors that have been under development and which show considerable promise towards providing the economic result for which we are all looking. I am sure that hon. Members will agree that it is most important that it should not be thought at any point that the Atomic Energy Authority is judge and jury in its own cause in deciding which one, two or three of those reactors should get the greatest support in the future.

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  Secondly, visits I have made to the Nuclear Reactor Division of the A.E.A. have made it quite obvious to me that this sum of money, and the clear interest shown in the subject by the establishment of the Dunnett Committee, has engendered a tremendous spirit of enthusiasm in those scientists and engineers who are working on this research and development programme. I was extremely impressed by that spirit. Incidentally, I was delighted to find so many old friends concerned in the programme. There is a first-class team, and I could not be more pleased with the way things are going from the personnel and enthusiasm points of view.
  Thirdly, the Government deserve our congratulations for having the courage to go outside this country, and the Atomic Energy Authority, by concluding an agreement with Belgian interests which involves certain forward-thinking concepts, including the development called "spectral shift", which shows considerable promise for the future.
  As I say, we are narrowing the range of reactors under investigation towards the ideal, consisting of a reactor of a capital cost of the order of, perhaps, £¾ million, and operating fuel costs of the order of one-seventh of a penny per shaft horsepower per hour. I do not think that there is any possibility of that ideal being achieved in the immediate future, and the available evidence seems to show that none of our competitors has yet got to that point.
  We have arrived at a critical moment. This autumn as I have said, from a field, narrowed as it already is to, perhaps, five or six reactors, a choice will probably be made of one, two or three favoured reactor systems on which we shall concentrate in order to go forward towards the optimum for which we are looking. There are two serious obstacles to the continuation of this programme— —and here I must take up points mentioned by my hon. Friend the Parliamentary Secretary and by the hon. and learned Member for Kettering (Mr. Mitchison).
  The gap between theory, research, pure science, and application to the end in view must be watched very closely, and that brings me to my main point. Of those two obstacles, one is comparatively
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  minor, and one is certainly major. I shall deal, first, with the minor one. I hope that I am in order to refer to a purely naval atomic project which will culminate with the entering of H.M.S. "Dreadnought", the atomic-powered submarine, into commission with the fleet at the end of the year. I have a Parliamentary Question down on that matter, to which I believe the answer will be that the date will be postponed.
  The minor obstacle is this. It is within the general knowledge of this Committee that a great part is being played in the delaying of this project by demarcation disputes in the yard at which that submarine is being built. But in the Marine Propulsion Division also, demarcation disputes, the narrower shibboleths of certain trades union concepts, are not only delaying the programme but making much more expensive the very extensive engineering operations that have to go hand in hand with the development of these types of nuclear reactor. I think that the Committee is entitled to ask hon. Members opposite—not only collectively but, in many instances, individualy—for their cooperation and assistance in trying to overcome some of these old-fashioned ideas that are holding back a fine programme like this.
  The major obstacle that hampers the application to the sea of what we hope will be a small number of near-optimum nuclear reactors is the fact that while all our competitors are either designing, building, or actually operating in service a nuclear-powered merchant ship we, at one time the greatest maritime nation in the world, have not yet got our feet wet. We have no design, if one excepts the 65,000-ton tanker that passed away in 1959, nor have we a project for sending to sea, in actual operation, a reactor or reactors of our choice. Uneconomical though they may be, they are surely necessary prototypes for the first generation of nuclear-powered merchant ships which, we hope, will be built in our shipyards.
  The decision taken last year not to build a ship might have been right or it might have been wrong—these are questions of judgment. It is very difficult for us, without the knowledge—and it is almost as difficult for those with the knowledge—to decide at what point it is

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  right from every point of view to get our feet wet; to put the reactor of the moment into a ship, and send it to sea. I believe that there are some very real and important reasons why we should do that as soon as we possibly can.
  In the first place, it is not always realised that the advent of the nuclear-powered merchant ship requires totally new hull form, because we are getting rid of a great amount of space, and a large amount of dead weight by doing away with oil fuel. Secondly, the small nuclear package reactor at which we are aiming requires a new positioning of the main machinery of merchant ships with all the problems that involves.
  Thirdly, it is essential that we should, as soon as possible, acquire practical training facilities for the engineering staffs and sea-going personnel who will operate nuclear reactors in merchant ships. Fourthly, we need the data and precise costing evidence of voyages undertaken, utilising these reactors, to show just what the economic prospects of this new system are. I am delighted to see my hon. Friend the Financial Secretary to the Treasury in his place and since he will reply to the debate we should realise that he is a person very closely involved.
  I will detain the Committee a while longer by making what I consider to be a few practical suggestions. The ship for which we should aim should be, perhaps, a tanker of 25–30,000 tons deadweight, that being the approximate size which can be powered by two selected nuclear reactors of 10,000 shaft horsepower each, perhaps operating geared steam turbines on one shaft. The two reactors could, perhaps, utilise the same propulsion machinery but with different types of nuclear core.
  Another suggestion is that the Admiralty—and I make no apology for bringing my old chiefs into this—should act as ship owner in this project. One cannot run a ship by committee. I once saw this attempted. It happened during the Spanish Civil War when the "Jaime I", a Republican battleship, was looking after our men who had been mined in the "Hunter". This happened a long time ago. It was the first, and I hope it will be the last, time in which I drank sherry in the wardroom with the commanding officer accompanied by
  1574
  red-rosetted able seamen of the ship's political committee.
  A ship cannot be owned by a committee, and if the Admiralty took charge of this project and became the owner it would simplify many problems of administration. I would not suggest that the ship should be built to warship specification. That, I think, would be fatal. It should be built to Ministry of Transport and Lloyd's Register specification and operated by the Admiralty. That is most important, otherwise one's castings and the economic data gathered from voyages could not be fully applicable to the merchant ships in which these reactors will be installed in the future. It should be operated under the orders of the Dunnett Committee, for in the ability and experience of its members I have no doubt.
  It would be useful to consider, even at this stage, chartering this ship to individual oil companies, provided not only that the data received on the completion of voyages is generally publicised but that all information derived from the operation at sea of the ship is as widely disseminated as possible. This is a subject on which I feel strongly and there is one naval comment I must make. There can be no doubt to any thinking person that the interests of the naval and commercial worlds in respect of nuclear reactors at sea are converging.
  The requirements of a warship are not dissimiliar in the long run, to those of a merchant ship. The difference at the moment is that one can accept a far greater burn-up and intitial cost—plus fuel and running costs—of a warship than of a merchant vessel. Nevertheless, if we envisage a type of package reactor made available to merchant ships, perhaps all around the world, the possibilities for warships can be equally well seen.
  Hon. Members may know of the Deltic engine manufactured by Napiers. In whichever part of the world a ship may be, components need never be repaired but just replaced. One has merely to remove the worn or damaged engine, whip it out and replace it with a new one. I can foresee the day when that system will be applicable to a whole generation of nuclear merchant ships, I trust built in this country.

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  I contend that our research and development is going as well as can be expected. We are on a rising tide of enthusiasm and, perhaps—and only perhaps—we have our nose ahead of our most important rivals. However, I beg the Parliamentary Secretary, his noble Friend and the Financial Secretary to remember that theory without application is nothing. For heaven's sake let us, a maritime nation, now decide to get our feet wet.
  6.6 p.m.
  Mr. George Thomas: I hope that the hon. and gallant Gentleman the Member for Harrow, East (Commander Courtney) will forgive me if I do not follow him into the intricacies of the subject with which he has dealt with such great authority. I rise to bring one matter to the attention of the Committee, as an earlier intervention of mine might have indicated.
  I thought that the Parliamentary Secretary's speech was full of platitudes. He never got down to tackling the question of how we are to improve the quality of scientific research in this country. He described the Government as a propagandist in this matter and painted a picture to indicate that the Government have simply to prod industry into spending its money in the right direction. He then indicated that there is opening before us a decade of progress with plenty of skilled scientists available in industry to do all the research we want. I think I do the hon. Gentleman no injustice in describing that as the picture he painted.
  When I intervened earlier, the Parliamentary Secretary, at the end of his speech, said that he was referring to the broad picture of scientists in industry and not to the subject of science teachers. He said it in a way that led us to believe that industry will get all the people it needs from the present provision in our universities and colleges for the training of people in science. In my intervention, I drew the Parliamentary Secretary's attention to a report which has been issued, "The Supply of Science Teachers", for it is on this supply that the pivot of our scientific research will depend at the end of the day. The report has been issued by the Joint Committee for Science and Education, and the Association of Scientific
  1576
  Workers, the Association of Technical Teachers' Institutes, the Association of University Teachers, the National Union of Teachers and the Science Masters' Association all took part in its preparation.
  It is fair to remind the Committee that there is deep anxiety among those responsible for education about the way in which we are failing to provide enough highly trained scientists to undertake the work about which we are speaking today. The competition for trained, skilled scientists is intensive in industry, the Civil Service, the social services and the teaching profession. Unfortunately, no regular statistics of the total number of science teachers or of the future needs for them are as yet published by the Government.
  The Parliamentary Secretary spoke of the rôle which the Government must play. Surely they have a direct and major responsibility for ensuring that adequate provision is made for the training of science graduates and that we are likely to recruit enough people to become science graduates and to take their place in the educational service, without which everything else remains an idle dream. The Ministry of Education, which has a responsibility as well as the hon. Gentleman for the production of science graduates, tells us that it cannot provide statistics about the number of science teachers because the Ministry's statistics are based on the qualifications of the teachers and not according to subjects.
  Sir H. Legge-Bourke: The hon. Member said that there were no figures available of the number of teachers required, but if he will look at Table 17 of the Report of the Committee on the Long-Term Demand for Scientific Manpower he will find some very informative figures.
  Mr. Thomas: If I may reply to the hon. and gallant Member, the Minister of Education insists upon telling us that the Ministry has no statistics concerning the number which will ultimately be required. I was quoting from the Report. I will look at the figures which the hon. and gallant Member has in mind a little later. I shall be very pleased to find the information to which he has referred.

  1577
  In the Report issued by the joint committee to which I have referred, attention is drawn to the fact that on the estimates of the Minister of Education we require 47,090 science teachers in 1959. But in the Report on the Long-Term Demand for Scientific Manpower it is maintained that the proportion of graduates in our schools who will be mathematics, science and technology graduates will not have changed greatly from 1959 to 1970. The Report states on page 15, that
  "In maintained secondary grammar schools the 1959 proportion (34 per cent.) has been assumed to apply in 1970. In other maintained secondary schools, the percentage in 1959 (21 per cent.) has been increased to about 30 per cent. in 1970."
  I have quoted because I believe that the Government are not showing enough urgency in this matter.
  At present there is an increase of 14· 6 per cent, in the number of young people who are being released from industry for technical training during the day. This means that more teachers are needed there. The Government envisage an expansion of our university undergraduate numbers by 70,000 within the next five-year period. Two-thirds of these are to be trained in science. This means that we shall require a further 5,000 lecturers at the universities. In the training colleges w have even seen the Government reduce the facilities for science training. The Minister of Education has issued a circular saying that 85 per cent. of the people in training colleges must be taught for primary schools, and there has been a serious reduction in the provision that is made there for people to be trained as science teachers.
  We need not only science graduates—and we need 14,000 more of them than we have at present—but we also need several thousand of non-graduate science teachers. There is no indication that, despite the grandiose aims held out, the Government are getting down to the essentials of this problem and are encouraging recruitment in the right field.
  How is recruitment to take place? The Government have to bear in mind that if industry is to have the number of science graduates it wants and if research is to be continued in this country they must begin with the teachers. They must begin in the universities and in
  1578
  the colleges. We are therefore back to part of the shocking problem which confronts the country of recruiting enough teachers. I believe that underneath all our scientific research is the need to make teaching more attractive. Science graduates who go into industry will earn three or four times what a science graduate earns in teaching and training other would-be graduates. There is something wrong with our priorities. This is another matter to which urgent attention should be given.
  I accept the Joint Committee's recommendation that there should be an immediate national campaign by the Government to encourage scientists who are now in the Civil Service and in industry to be prepared to go into the schools to teach, where they are so qualified. Suitable courses should be provided for training these people. The introduction of new courses on science and technology suitably designed for students who may become teachers ought also to be part of the Government's plans.
  We have heard nothing practical from the Parliamentary Secretary about what steps the Government are taking to make sure that they have the men to get on with the job. Unless something urgent is done to attract more science people from industry at this stage into the teaching profession we shall still be behind at the end of ten years, and the hon. and gallant Member for Harrow, East will still he deploring that we are not able to keep up with our rivals.
  I have only that major point to make, and I hope that when the Financial Secretary to the Treasury replies he will have something to say about the Government's plans for recruiting and training the right quality of people.
  6.18 p.m.
  Sir Harry Legge-Bourke: I do not think that any of us would dispute the main purpose which the hon. Member for Cardiff, West (Mr. G. Thomas) has in mind. It is perfectly right that he should say that we must think seriously about the provision of adequate qualified teaching staff, but it is as important, if not more important, to say that we want mathematics teachers than that we want science teachers at the moment. I know that this matter is causing a great deal of concern to my

  1579
  right hon. Friend the Minister of Education.
  When I interrupted the hon. Member's speech, I referred him to Table 17 of Cmd. 1490. It should have been Table 16. The hon. Member will see from it that the forecast is that the demand for qualified manpower in education will have risen from 35,640 in 1959 to 68,700 in 1970. Then there is a sub-division for scientists and technologists, the final figures being 55,800 for scientists and 12,900 for technologists.
  Those are some figures to go on. I do not say that they will necessarily prove to be accurate, but they are at least projected forward after further careful calculation as set out in the White Paper. I sympathise with any hon. Member who has to rely upon forecast figures, particularly since we know in the House of Commons all too well that, even in one year, estimates can sometimes go awry.
  My concluding observation in reply to the hon. Member for Cardiff, West is this. We must ensure that we get the best possible value out of the qualified people coming out of our universities. This, I think, raises an enormous problem, which would at once throw us into an education debate, namely, to what extent, with the shortages that we can foresee and the needs and demands we can foresee, can we go on leaving the individual student absolutely free, regardless of what his education at the expense of the State has cost, to choose exactly what he wants to do, taking no account of what is, in fact, in the national interest at the time? This is an immense problem.
  Dr. Jeremy Bray: Ls the hon. Gentleman suggesting that we should adopt the Russian system of direction?
  Sir H. Legge-Bourke: What I am saying is that it may be necessary, as I see the problem developing in the future, to put a choice before the student at a certain point in his education, when he is going for the highest possible category of education. If he does not adopt the course which attracts further grant, then, I believe, we might well have to say that that is his choice and his decision. That is but a tentative
  1580
  idea forming in my mind the more I study these matters.
  Dr. Bray: Would the hon. Gentleman then go on to advocate that the "fuddy-duddies" first be directed off the boards of industries?
  Sir H. Legge-Bourke: I am all for getting rid of fuddy-duddies wherever they are. [Interruption.] Perhaps the hon. Gentleman might look at his own Front Bench, too.
  This brings me to the point I wanted to make. The hon. and learned Member for Kettering (Mr. Mitchison) made an astonishing speech in opening the debate. I do not know whether he has studied carefully the Eighth Annual Report of the United Kingdom Atomic Energy Authority. In Chapter 7, he will find a good deal of talk about plasma physics and fusion research. In paragraph 156 the Authority says that it proposes to deal with "pinch" and "unpinch" stability studies. I hope that all hon. Members are familiar with what pinch and unpinch stability studies involve. I confess that I have read these paragraphs in the Report three or four times and I am still not much wiser. As regards this debate, on the other hand, we all expected the hon. and learned Member for Kettering to pinch the Government like anything, and we were all ready to assist the Government to be unpinched. However, having listened to his speech, I find it very difficult to know what he was complaining about.
  Usually, in Committee of Supply, there is some complaining to do. We air grievances before we vote Supply. I could not help thinking that the hon. and learned Member was really expressing his own ignorance on a subject about which the Committee generally is all too ignorant. I myself claim no superior knowledge compared with any hon. Member in these matters.
  Mr. Mitchison: I must rise to this one. Fundamentally, I asked the Government only one question, namely, what they did. I have not had an answer yet.
  Sir H. Legge-Bourke: There again, the hon. and learned Member shows how unprepared he is for this debate. If he looks at the figures, he will find out a good deal. We are in Committee of Supply, and one of the major matters is

  1581
  public finance. In Appendix D of the Annual Report, 1960–61, of the Advisory Council on Scientific Policy—
  Mr. Mitchison: That is not the Government.
  Sir H. Legge-Bourke: — the hon. and learned Gentleman will find very conveniently listed the amounts of money which are being spent on civil research. I do not for a moment suggest that what the Government spend on civil research is the only thing that matters. I do not suggest that money is necessarily the most important thing about it, but I should have thought that, in Committee of Supply, the hon. and learned Gentleman might at least have referred to this matter.
  Does the hon. and learned Gentleman really think that it is shocking for the Government who, in 1959–60, were spending £ 9,316,000 on civil research in connection with agriculture, forestry, fisheries and food, to be spending in the last financial year £ 12,668,000? That was the sum spent for agriculture, fisheries, forestry and food alone. Incidentally, this never is included, in the mind of all too many farmers, as part of the support which the nation gives to agriculture, and perhaps at this point one might emphasise that.
  For industry and communications, the figure has risen from £ 17,314,000 in 1959–60 to £ 19,703,000. So it goes on. The increases show a final comparison between a total of £ 34,313,000 in 1959–60 and £ 42,052,000 in the last year.
  I am one of the first to say—I do my best to remind the Government of it from time to time—that one of the most wicked political exercises one can indulge in is to take credit for spending more money than one's predecessors did. I fear that it is all too often true that whatever we spend this year will, for doing exactly the same thing next year, have to be increased a good deal. This is one of the difficulties which Governments have in estimating. I do not suggest that the net increase in the comparison I have just mentioned necessarily represents a real increase in activity, but these figures serve to illustrate the point I want to make as forcibly as I can, that it is no good just comparing figures if one wants to have the
  1582
  real picture of what the problem is and how it is being tackled.
  I should have been surprised if the hon. Member for Chester-le-Street (Mr. Pentland) or any hon. Member representing a coal-mining constituency had not tried to make the case for the coal miners in his constituency and for the support of the coal industry here at home. I should have been surprised if someone had not done what he did, namely, make comparisons with the United States of America. I have the very excellent document which was sent to me by the Association of Scientific Workers which, of course, does that very thing. Nowadays, people tend to adopt the international league table approach.
  Nevertheless, one must be very careful before assuming that what goes for America necessarily goes here. I recently obtained some figures relating to another industry in which many hon. Members are interested, the iron and steel industry. It is of some importance in this debate to remind the Committee that our iron and steel industry is based upon a conception of manpower and output which is very different from the conception in the United States. In this country, we work on the basis of more than 4,000 men being required to produce 1 million tons of steel. In the United States, the organisation of the industry is such that the labour force is based on 1 million tons of steel being produced by 2,000 men, less than half our figure.
  Mr. Albu: Is the hon. Member aware that the new plant at the publicly-owned Richard Thomas and Baldwins works will be the most productive plant in the world?
  Sir H. Legge-Bourke: I realise that. All I am saying is that one should not draw these strict comparisons between one country and another. There are many things about our industry different from those in America—the cost of travel, the distances travelled, concentration of population, the fact that Britain is an island, and the age of factories; all these things come into it. I am always very suspicious of these international league tables if we are really seeking a true picture.
  Mr. Pentland: I have a good deal of sympathy with what the hon. Member has said. I was referring to the energy available in industry.
  Sir H. Legge-Bourke: I assure the hon. Gentleman that no one is more anxious than I am to see the British worker given the right amount of horsepower at his elbow. We all know that these things have to be attended to. But let us be very careful before we assume that figures that we obtain from abroad are necessarily true of this country if they sometimes appear to be better at first blush.
  I say to my hon. Friend the Parliamentary Secretary that I do not think that he did himself or his Department the full justice that he could have claimed today. He was far too modest. I am rather proud of what the Government have done in the field of science and technology. I hope that no one will assume from what I have said that I am in the least complacent about what we have done. Heaven forbid, that anyone should be complacent about it. I fully support what my hon. Friend said in relation to the need for industry to take a more active interest in science and its application. But we have to be very careful before we who are in a glass house start throwing stones.
  I have been present since the debate began, and I doubt whether there have been more than forty hon. Members in the Chamber during the whole of that time. I would say that this side of the Committee is, if anything, more to blame than the other.
  It is a fact that science is a subject that frightens people off. I wonder whether we could improve this situation if we talked about people—scientists instead of science quite so much. Hon. Members are certainly politicians if nothing else. We ought, therefore, to be interested in people. I am quite convinced that the great mistake that far too many pluggers of science have made is in talking about it as though it were something abstract, impersonal, material and rather horrible. That is why I am not surprised that the hon. Member for Cardiff, West got on to the education front. If one starts talking in the classroom on the basis of something being impersonal, very soon the lesson becomes dull and no one pays
  1584
  the slightest attention to it. That is why I am hoping that if only we can get this down to terms of the human individual and what it means to him we may make some contribution in persuading industry to take more trouble in ensuring that the people working in industry are as fully equipped as they possibly can be to make a success of their job.
  In the Adjournment debate on 21st December last year we talked about scientific manpower, and I raised the question of apprenticeship training. I was very glad to hear my hon. Friend say what he did about the progress being made. After that debate I heard from the Minister of Labour, and I gathered that there is a real concerted effort being made now to see if it is not possible to shorten the period of apprenticeship. My hon. Friend gave a good illustration when he said that it took only a year for him to train as a fighter pilot but that it takes five years for a man to become a bricklayer. Is that really necessary? This gives an opportunity really to make some greater improvement.
  It is perfectly true that the research associations in industry, if better supported and if the products of their research and development were taken up, could bring about the saving of millions of £s, but I do not believe that we shall get this matter right unless we first make sure that the people coming into industry are themselves going to force those who are already there to think scientifically. I think that it was in Health, Wealth and Happiness of Mankind, one of the few books of H. G. Wells that I have ever managed to finish, that he said, "Before you can educate the children you have to reeducate the adult". I am not sure in this problem that we have not to start the other way round, because I believe that there are some people who have been in industry so long that they are incapable of changing their ways. I believe, therefore, that what we have to do is to try to inject such a pressure of new thinking and new ways through modern scientific education that we force those in charge of industry to mend their ways and take more interest in science.
  The Parliamentary Secretary said something with which I disagreed in the last paragraph of his speech. He said

  1585
  that it was not possible to coerce in these matters. I do not think that the Russians would agree. I do not want us to have to adopt Russian methods in order to get over what we have to do. To me, what is far more important is that pressure and weight of opinion should persuade individual people rather than that we should have to introduce rules, regulations and directions. I think, however, that we must have some. The more scientific the organisation of this country becomes the more inevitable it is that the Government have to interfere here and there. But I think that we should keep Government control and direction to the minimum, because ultimately what we are dealing with is human nature. I think that the great fallacy in Socialism is that it too often overlooks human nature, tries to dragoon, and then human nature reasserts itself and the Whole thing collapses
  I remember the difference between what was said in Let us Face the Future, the Labour Party programme in 1945, and what it handed over in 1951. I remember that, however well we may organise a nationalised industry, it does not necessarily mean that because it is nationalised it will be more efficient, or that prices will come down. Some of these promises are held out to the British electors from time to time. The proof of the pudding is in the eating. When I can see Government direction doing something better than it can be done by real voluntary efforts by individuals, which we want to get, I shall believe that there is something to be said for the need of State control.
  The hon. and learned Member for Kettering said that he did not know what the Minister for Science was really there for. I would remind him that the Minister for Science—
  Mr. Mitchison: With all respect, I did not say that. I made several suggestions as to what he was these for. What I said was that I did not know what he did, and I have not yet heard. The hon. Member has quoted a lot of work done by scientific associations at public expense, but I want to know what the Minister does.
  Sir H. Legge-Bourke: I should have thought that the one thing that the Minister
  1586
  has done—and I am going to get it in even if the hon. and Gallant Gentleman tries to prevent me—is what he declared in another place on 9th November, 1960, to ensure that the country is adequately provided with a fully active scientific life on an adequate scale. That is what he declared to be his object. It seems to me to be a very good one. I would ask the hon. and learned Member to consider fairly and dispassionately, if he possibly can, whether he could have done any better than the Minister has done. I very much doubt whether he could. I think that what the Minister for Science has done since taking office is to get it across to those who are responsible, whether it is in the Department of Scientific and Industrial Research, the research associations or the Research Council, that science matters. We have a part to play in this. If only a tenth or a fifteenth of the membership of the House turns up to listen to a science debate, let us be particularly careful before we criticise others for not doing better. If this debate does nothing else, it may jog a conscience or two. It may encourage same people who are working under graver difficulties than those who are trying to do the best by science in this House sometimes have to suffer.
  I hope that we have at least shown, or shall show by the end of the debate, that we really believe that this is a subject which matters, that it is an intensely human subject besides being a materialistic one and that, if this country does not tackle it properly, it will have only itself to blame if it goes under.
  6.40 p.m.
  Mr. Eric Lubbock: Like the hon. Member far the Isle of Ely (Sir H. Legge-Bourke), I have been here since the beginning of the debate, and I must say that we have heard a tremendous number of clichés and statements which have no relevance to the subject. When the hon. Member started to discuss nationalisation, I could not see its relevance to this subject. He said—and I think that I quote him correctly—that it was a subject which the House of Commons at large was all too ignorant about, and I certainly agree with that.
  Expenditure by the Department of Scientific and Industrial Research was going on before we thought of a Minister

  1587
  for Science. I entirely agree with the hon. and learned Member for Kettering (Mr. Mitchison) that we have not had an answer to the question which he posed, namely, what is the function in life of the Minister for Science? Perhaps I could remind him of the answer which Gilbert gave to this question about all the noble Lords in another place some time ago. He said that they
  "Did nothing in particular,
  And did it very well".
  The Parliamentary Secretary told us what great emphasis the Government place on science, and I am sorry—since the hon. Member drew attention to this fact, perhaps I may refer to it as well—that this has not been borne out by the attendance in this debate. There are on the Government benches at the moment 2·71 per cent. of the maximum possible number which could be attending [Interruption.] The hon. Member asks about my side. At present 14–3 per cent. of my party is present.
  Mr. Kenneth Lewis: The percentage on this side listening to the debate is greater than the percentage of the Liberal Party listening to it.
  Mr. Lubbock: I will leave the arithmetic to be appreciated by people who can clearly see the difference between the figures Which I have given, and will go on to what I was intending to say.
  I believe that there are four questions of fundamental importance. There may be more than four, but these are the central ones. The first is whether the overall amount of research work being done in this country by and for industry is adequate. Secondly, is the distribution of this work between the various industry groups such as to secure the maximum return on the nation's investment? Thirdly—and the hon. and learned Member for Kettering called this a matter of the very highest importance— are the new techniques and methods developed by research workers being applied in industry? Fourthly, and perhaps even more important, are the numbers of qualified scientists and engineers commensurate with the task which industry has to undertake?
  The Parliamentary Secretary said something about this matter. He said
  1588
  that industry was spending £ 270 million this year, of which £ 150 million was from Government sources, but he did not tell us whether he considered this to be an adequate effort. He said that the Government's part was to help industry to exploit the fruits of scientific knowledge and wont on to confess that not enough was being done in this regard.
  The Parliamentary Secretary also told us the objects of the Department of Scientific and Industrial Research, namely, to encourage and assist research associations and to undertake in Government stations consideration of problems selected for their relevance to the longer-term considerations. I do not think that the Department is doing this job in many cases. For example, in the Production Engineering Research Association, which has a total budget of about £ 490,000, it would be impossible to undertake long-term studies on things like impact extrusion, numerical control of machine tools and electrochemical machining.
  Mr. Denzil Freeth Mr. Denzil Freeth rose—
  Mr. Lubbock: I know what the Parliamentary Secretary will say. He will say that investigation is being made into impact extrusion, but it is impossible to perform this function adequately with the present limited amounts of money.
  Mr. Freeth: I said that the stations of the Department of Scientific and Industrial Research were responsible for choosing projects of long-term value to British industry. One would expect the Production Engineering Research Association to consider the needs of industry today and tomorrow very much more than the needs of industry in five years' time. However, it does a certain amount of basic research.
  Mr. Lubbock: I was saying that these newer techniques are becoming of great value to industry and that perhaps not enough work is being done on them by the research associations due to the shortage of money. I am sure that the Parliamentary Secretary will agree that for investigation into things like numerical control £ 490,000 is very small skittles.

  1589
  A very interesting Report published in December last year by the Federation of British Industries is of some relevance mainly to the question of the distribution of expenditure. It does not comment on whether the absolute amounts are adequate, but covers the work of member firms which make up by far the greatest proportion of industry as a whole. It highlighted a disquieting situation. I agree with the Minister for Science, who said on 5th April this year that:
  "The survey revealed the pattern of research and development, a pattern of science in industry which is by no means even and by no means reassuring."
  The noble Lord went on to say that only three or four industries were science-based—that was the phrase which the Parliamentary Secretary used —some of the biggest being among the least. I found this information in one of the four large tomes in the Library to which the hon. and learned Member for Kettering referred.
  Of the £250 million which the Report says industry is spending on research and development, no less than £ 90 million is spent on account of the aircraft industry. The reason for that must be fairly clear, that most of the expenditure by the aircraft firms is Government-financed work connected with the defence programme. This allows them to undertake programmes of a much greater size than they would be able to undertake if they had to be justified by the commercial returns.
  I should have thought that the immense concentration of resources in this one sphere must have been very harmful to the economy as a whole over the last few years. I say that because many of the projects have no immediate commercial application, and all of them would involve a diversion of scientific and engineering manpower from other sections of industry.
  This is true to some extent even in the civil sphere. There have been examples of wasteful expenditure resulting from vacillations in Government policy. I could quote several instances. For example, the Vickers V.1000, if it had been proceeded with, would be flying over the North Atlantic now if the Government had not had cold feet at the eleventh hour. This aircraft was not proceeded with because the Government
  1590
  said that the development of the Conway engine would not keep pace with the growth in all-up weight of aircraft. That assumption has been proved totally false in the long run. The RCO.42 is the most powerful civil engine in existence. I point out this example because, as a result of the Government's policy, B.O.A.C. had to spend money on American aircraft at a time when we were being treated to frequent lectures by Government spokesmen about our balance of payments.
  I have mentioned already wasteful duplication in the aircraft industry. There should be less of this now that we have the series of groupings which have taken place. I do not believe that we should be too worried about preserving competition in this field, because the competition there is comes primarily from the United States, and not from other companies within Britain.
  Indeed, with our entry into the Common Market there should be even wider opportunities for collaboration than there have been hitherto, that is, collaboration with European aircraft firms on certain projects which would be too large even for the resources of the bigger companies in this country. An example would be research and development work on the supersonic airliner project, which will, of course, be astronomically costly in comparison with anything which we have so far developed in this country, even compared with the present generation of subsonic jets. I hope myself that we shall be able to share this work and other projects of a similar nature with French and with other European aircraft companies. We have in this country some of the most advanced research and development facilities in the whole of Europe, such as the high-altitude test facilities at Rolls Royce in Derby. I would hope that in this collaboration with European aircraft firms such facilities could be more intensively utilised than they have been in the past.
  I would also hope that another advantage might stem from this closer association with Europe, and that is that in the end we should aim at a common procurement policy on the part of European airlines. If we had this, the research and development expenditure which goes into any particular aircraft

  1591
  could be recovered over a much longer run of production. We have never been able to do this in this country, except with the one exception of the Viscount, which must have recovered its research expenditure and development costs many times over, but with the limited markets of B.O.A.C. and B.E.A., that is not true of other aircraft we have developed in this country since the war. I believe that there are great opportunities for the aircraft industry in going into Europe, and I think it is a very important thing to be borne in mind when we consider that question.
  I turn back to the Report of the Federation of British Industries. We have £ 160 million left out of the total of £250 million which is spent by industries other than aircraft. The Report makes the point that no less than 83 per cent. is spent by six industries alone. It draws a very clear distinction between what it calls the researching and the traditional industries and it says that
  "the traditional industries such as food, drink, textiles and building, with an employment rather greater than that of chemicals and electrical engineering combined, make a far smaller contribution to the total research activity."
  The reason for this does not appear to be primarily that firms in the traditional group are smaller than those in what the Report calls the researching group. If it had been so, a partial explanation might have been that the smaller the company or the smaller the group, the less proportion of its resources is devoted to research development, for reasons which must be fairly clear. There is a minimum amount below which one cannot go, and it is beyond the reach of many small companies.
  Therefore, it is true to say in general that the smaller companies spend a lower proportion of their resources on research and development. But it is not true in this case, and I think one may say that in certain of the activities there is less point, commercially speaking, in spending money on research and development. It may be that greater use is made of it in those industries with co-operative research facilities. That certainly is true in some cases, such as, for example, pottery or wool. So that to get a comprehensive picture one has to take into account the expenditure by
  1592
  establishments financed through the Department of Scientific and Industrial Research to which I have already referred, and it is interesting to note that the total expenditure as given by the Parliamentary Secretary for the coming year for the Department is £ 20 million—I think he said—and this compares with expenditure by private industry of £250 million as mentioned by the Report of the Federation of British Industries.
  This really does put the Government effort into perspective. In this connection it is rather interesting to note the first sentence of the Department's Report for 1961 which says:
  "The economic situation has put increasing emphasis on the role that science must play in fostering economic growth and supporting the export drive."
  I would not say that expenditure of £ 20 million compared with £250 million which is spent by private industry is going to achieve its object.
  Mr. Denzil Freeth: Will not the hon. Gentleman agree that the expensive part of scientific research and development is that part of the process which the more closely approaches production? Basic research is, relatively speaking, inexpensive to finance. It is development of the process particularly when getting near the stage of production for the customer at which there stems the growth of money to be put up. I think that is why it would be untrue to suggest that the value of D.S.I.R. research to the nation, compared with research which goes on in industry, can be assessed by relating the two figures of £20 million and £250 million.
  Mr. Lubbock: Well, of course, what the hon. Gentleman says may be perfectly true, but a number of the research associations which have been grant-assisted by the Department of Scientific and Industrial Research undertook both fundamental research and production and development. I have spoken of the Production Engineering Research Association. This Association certainly undertook both types of activity. This fundamental research and the question and answer service, as one may call it, have been of value to users. So I would not say that there is this distinction and that one could draw a line and say that the D.S.I.R. was not trying to do one

  1593
  part of this work. I think I have still made a valid point: there should be more money allocated to the Department of Scientific Research to use in this manner.
  I believe that also in the application of science to industrial processes we have already got means available to revolutionise industry. This was my third point which I made at the beginning of my speech, the importance of applying the results which companies achieve by research and development work to industry, and although, as I say, we have already means available to revolutionise many industrial processes, the failure to apply those results has been the brake which has hindered the progress from taking place more rapidly, and I think that certainly in light engineering this process, if one could bring the average company up to the standard of the best, would mean a tremendous advance in productivity.
  I said that there were tremendous differences between various industries. In this connection there is an interesting correlation between the amount spent by firms on research and development and the amount they are prepared to spend on new plant. A recent survey which was undertaken by a well-known journal showed that 59 per cent. of the machine tools in Britain are over 10 years old and that 22 per cent. are more than 20 years old. There is the correlation, because, for example, in the shipbuilding and marine engineering industries one knows that 87 per cent, of the plant is more than 10 years old, while the F.B.I. Report, to which I have referred, shows that the number of qualified scientists available is less than two per 1,000 employees. At the other end of the scale we have aircraft manufacture, which is by far and away the largest spender on research and development and has the second lowest percentage of over-age machine tools.
  There are, of course, differences between firms in the same industry. We have many small firms in the machine tool industry which employ very few qualified scientists and engineers relative to the large firms, though some companies feel this can be made up by employing more people with the higher national certificate or its equivalent. Again, in
  1594
  the smaller firms one often sees belt-driven machinery which should have gone out before the war.
  There may be some firms which are compelled to make do with inadequate equipment through shortage of capital, although sometimes it is a case of wrong priorities. It may be that the numerically controlled milling machine has had to take second place to the chairman's Bentley. But where one finds old plant, the re is frequently a corresponding failure to apply scientific thought to making the most of the facilities already available. As an example, how are speeds and feeds determined in the majority of small machine shops? All too often this is considered of little importance by managements who have no scientific or engineering training, in spite of the potential benefit which could stem from proper attention to such minor details which could be very significant nationally and, moreover, would involve no outlay of capital expenditure.
  This brings me to consideration of the final question which I posed at the beginning of my speech and on which the hon. Member far Cardiff, West (Mr. G. Thomas) spoke so well earlier. Are the numbers of qualified scientists and engineers commensurate with the task which industry is trying to undertake? I do not want to repeat the arguments used in the debate on scientific manpower on 21st December, but I recall the warning given by the hon. Member for Hayes and Harlington (Mr. Skeffington) against repeating the mistake of the Willinck Committee over a wider field.
  The Zuckerman Committee's recommendations were based on fairly broad assumptions—not as bread as earlier estimates of a similar nature—and this makes it difficult to comment constructively on the conclusions which the Committee reached. But I do not think that any hon. Member disagrees with the statement that
  "It would be folly to take the risk of significantly underestimating the demand for employment and cramping the vital growth of our scientific efforts by attempting to draw too fine a balance between supply and demand."
  Whatever may be the situation in the long run, no one can deny that there is a severe shortage of trained scientists and

  1595
  engineers today, and this has been admitted this afternoon by the Parliamentary Secretary. The Federation of British Industries tells us that,
  "There is a standing vacancy rate of about 13 per cent. overall in industries' research and development departments. In some industries it is much higher—over 20 per cent. in engineering, for instance."
  In the next paragraph it says that this is very significant and that,
  "There is no single factor which could have so large and so immediate an effect on industrial research activity as an increase in the number of qualified scientists and engineers available to it."
  I believe that a similar statement could be made both about production and about management in general. As a product becomes more complex, we need more qualified people not only in the laboratory but in the works, the sales department and in the board room. I dare say that the Government may agree with this in principle, and may tell us that it is this kind of thinking which has led to their plan for an expansion of the number of university places to 170,000 by 1963. But if that is so, it is impossible to understand why the recommendations of the University Grants Committee were rejected. As the hon. Member for Holborn and St. Pancras, South (Mr. G. Johnson-Smith) said on 5th April,
  "I cannot for the life of me see, even with the increased expenditure, that the Government announced recently, that they have come to grips with this problem, and acknowledged, what I think ought to be acknowledged, that this transcends all other demands placed upon the Treasury."—[OFFICIAL REPORT, 5th April, 1962; Vol. 656, c. 760.]
  The Zuckerman Committee estimated that the demand for qualified manpower in education as a whole will almost double by 1970 and that within the universities themselves it will more than double. Only the most unthinking Tory optimist could possibly expect this to be achieved unless we are prepared to place a much higher value on the services of university teachers than we place on them at present. Yet it is in this sphere, I believe, that the Government bear the greatest responsibility of fostering what one might call a science-orientated approach in British industry. Nothing can be done to encourage firms to employ more graduates if the graduates are not there.
  1596
  In this connection, I should like to quote a Tory research department publication called "Notes on current politics". This was dated 24th April, 1961. I take it that they endorse the remarks in their own propaganda. These were:
  "Sir John Cockcroft has reminded us that Britain is producing five times fewer university-trained engineers per head of the population than America of Russia•• Dr. W. H. Linnel of London University told the British Association last year that the Russian lead in training scientists and engineers could bring about the possible eclipse of the free world in the economy of say twenty years' hence and that this represented a greater danger to the free world than the hydrogen bomb."
  I do not quite agree with his last statement, but I think that basically this is the crux of the problem, and I am glad to see that it is appreciated by some of the propagandists on the other side of the Committee, in their words if not in their deeds.
  But even a large expansion of Government-sponsored research would not necessarily be beneficial under present conditions, because what would happen is that it would draw away talent which would otherwise be employed in industry. My right hon. Friend the Member for Orkney and Shetland (Mr. Grimond), said on 5th April that
  "the universities are the determining factor of the quality of life in this country."—[OFFICIAL REPORT, 5th April 1962, Vol. 656. c. 744.]
  I would add that the science and engineering faculties are the parameters which will determine our survival or extinction as a major industrial Power.
  7.7 p.m.
  Mr. Airey Neave: In describing himself as 14·3 per cent. of the Liberal Party in the Committee, the hon. Member for Orpington (Mr. Lubbock) certainly did himself justice in the number of very important points which he raised. I should like to refer to some of them, in particular the question of international co-operation in production and research. He mentioned our aircraft resources. Although he did not develop this fully, if we joined the Common Market the fact that the sources of the production of aircraft were being pooled within the Six would raise vital questions for the aircraft industry in this country, and I hope that later he will develop that point. It is very important.

  1597
  Hon. Members from both sides of the Committee have heard how deplorable it is that not many hon. Members are present. I agree with what has been said about that, for it is very important—and I represent a constituency containing a large number of scientists—that scientists should feel that we are taking a genuine and practical interest in their work and in themselves. But, as my hon. Friend the Member for the Isle of Ely (Sir H. Legge-Bourke) said in a notable speech, the fact that a few of us are here to take part in a scientific debate is something at any rate, and perhaps it will stir a few consciences.
  The tenor of the Parliamentary Secretary's remarks was that private industry should create the growth of scientific knowledge in industrial matters. There is a lot of truth in this, but there is also much truth in what the hon. Member for Orpington said—that they cannot create a growth of scientific knowledge within private enterprise unless the scientists and engineers are forthcoming. My hon. Friend rather over-stressed the duties of private industry in that respect, although I agree that they have a long way to go. He said that they should be intellectually convinced.
  I hope that the Committee and the Government are intellectually convinced in these matters, because one does not wish to throw all the emphasis on private industry without there being a contribution in the form of skill, training and teaching on the Government side.
  The particular subject which I want to raise in a very short contribution is this: we may join the Common Market, and if we do, presumably we will in consequence sign the Euratom Treaty. Euratom is a research organisation and, therefore, it is, I hope, in order to raise this matter, because private industry will clearly be much involved in the Government's negotiations that will take place on research within the Common Market.
  My hon. Friend the Parliamentary Secretary said, quite rightly, that civil atomic energy is beyond the resources of industry. He meant that a large part of the research and development in nuclear power must be conducted by the Atomic Energy Authority. In referring to private industry in this matter, I should declare an interest in that I am a director of a firm which is engaged in
  1598
  nuclear power station construction. If we undertake negotiations with the Euratom Powers—which for this purpose are the Common Market Powers—what is the basis on which the Government intend to negotiate for private industry?
  There is a great deal more Government control of nuclear research in this country than in the Euratom countries. In France, for example, and in other European countries, far more research contracts in reactor work are farmed out to private enterprise. That being so, what is the basis on which the Government intend to negotiate?
  I do not dispute that a large proportion of the research will be conducted on a Government-controlled basis—that is to say, in the United Kingdom, by the Atomic Energy Authority. I raise this point, however, and I should like an answer from the Government at the close of the debate. The question is directly related to the amount of research that private industry would do in that direction, because if private industry were able to get contracts in Europe for the considerable "know-how" in nuclear energy matters which it has gained during the past few years, this would be to its benefit.
  It is true that private industry has much progress to make in research in most ways that one can think of and that it must increase its scientific activities. The onus, however, is not entirely upon private industry. It is also on the Government to provide the education for the very people who will hold the jobs that will improve our prosperity and our productivity. Therefore, I do not want it to go out from the House of Commons, particularly from the Government side, that there was a lack of balance in what my hon. Friend the Parliamentary Secretary said today and that all the onus falls upon private industry. It does not. It falls upon the Government as well.
  I share the view of hon. Members who have spoken that although one can never be complacent in these matters, the D.S.I.R. certainly has done a remarkable job over the past few years. None of us should ever seek to be complacent about scientific research, just as in my view the overall planning of scientific knowledge is an impossibility. There is here a happy mean. I hope that the Government take note of the points made

  1599
  by hon. Members in this matter and that we will have more constructive debates of this kind in the future.
  7.14 p.m.
  Mr. William Stones: It would be impossible for me at this stage to deal specifically with all the arguments that have been adduced by previous speakers in the debate. At least I am pleased to see that the hon. Member for the Isle of Ely (Sir H. Legge-Bourke) has had the patience to sit here until I have risen to speak, because I wish to refer to one of the hon. Member's comments.
  The hon. Member said that science in industry should be brought down to the level of understanding of the ordinary man or woman in industry. I wholeheartedly agree with that remark. I hope that my contribution to the debate will be of benefit to the Committee and to the Government, for I speak as an ordinary layman in industry and not on a highly academic plane.
  As a miners' Member of Parliament connected for many years with mining and who served for five years as a mining inspector before entering Parliament, it might be expected that I should deal specifically with mining. That is not what I propose to do. I intend to deal as a layman with the subject of science in industry.
  When many people, on both sides of industry, refer to science, they think in terms of its being a new-fangled idea or gimmick. Everyone in this Committee recognises that science in industry has always been with us. There have always been thinking people who have studied the why's and the wherefore's, the cause and the effect. As a consequence, mankind has made great progress. It was not until the eighteenth century that the impact of science in industry was felt and not until the nineteenth century that it was developed to the extent of playing such a great part in our industrial life as eventually to bring about our great Industrial Revolution.
  While it is true that the ordinary, practical man has played a big part in the progress which has been achieved, apart from any practical benefits which might arise as a result of practical observations, the truth simply is that to have the fullest benefit from technical improvements, research and the exploitation
  1600
  of discoveries are required on a highly organised scale. The change-over from haphazard working by independent scientists to our co-ordinated efforts simply meant that there had to be a vast expenditure of public money. That expenditure, however, made Britain the workshop of the world, a position which we continued to hold for many years.
  The trade mark "Made in Britain", especially in engineering, was a hallmark that was recognised throughout the world. Other nations are following our lead in industry, however, and we can no longer claim to be the workshop of the world. Nevertheless, it remains a fact that British workmanship is regarded throughout the world as top grade.
  We are now meeting keen competition from other highly industrialised countries which manufacture goods similar to those manufactured here. Because of this and because our economic survival depends upon how we measure up to those countries in world markets, we must apply our brains and make every effort to speed up research in the application of science, particularly to our industrial requirements. Such research must not be limited by the amount of capital that is available. It is easy to say this; nevertheless it remains true. We can, and we must, afford the necessary amount of capital, particularly to enable our research to go forward.
  It has been suggested that industry should itself make available the capital for research. No industry will be found which is prepared to provide it to the extent which is necessary. It will, in my opinion, be necessary for the Government to help. It is true that British research has gone on rapidly in recent years and more and more money has been spent on this aspect of industrial activity, but even now we are spending only 2½ per cent. of our national income in this way. We spend almost twice as much on tobacco. It is also true that we are spending on defence a sum equal to half that 2½ per cent. Because I believe in defence and believe that we have something in this country to defend, I cannot complain about that, but I deplore the circumstances in which such highly civilised beings as we are fritter away such amounts of national income instead of

  1601
  devoting the money to more desirable industrial research.
  We can be proud of what is being done by the Department of Scientific and Industrial Research, our universities, the National Physical Laboratory, other national institutions and also our industrial concerns; but are we doing enough? Is it true that the organisations engaged on this important work are hamstrung through lack of funds? My hon. Friend the Member for Chester-le-Street (Mr. Pentland) made a remarkable speech on coal utilisation. It is not necessary for me to elaborate that point; but is it true that insufficient money is being spent on the economic production of new materials in respect of coal utilisation? Is it possible that our coal reserves, and the coal industry itself, are being forced to contract to such an extent that social evils will follow? Could coal, the only raw material that we have in abundance, be better utilised not only as a source of heat energy but to provide elements of new materials? If there is lack of money, as a nation we ought to be ashamed.
  It must be obvious to thinking people that the competition between the great industrial nations will become keener. Consequently, if we are even to maintain our place in the world as an industrial nation, we shall have to utilise all our resources to their fullest extent, and because of our limited resources more and more will depend on our human resources, skills and ingenuity This will call for more and better scientists than before. I am informed that in 1956 we had about 145,000 engineers and scientists in the United Kingdom. By 1959 the figure had increased by 20 per cent. to 173,000. It is estimated that by 1966 we shall need 60 per cent. more scientists and engineers than we had in 1956. At present 60 per cent. of our scientists and engineers are in industry, 15 per cent. are in Government Departments and concerns, and 20 per cent. in the teaching profession.
  Whatever has been said about financial resources to further our scientific effort—I emphasise this as being extremely important—in the last analysis the success of our effort will depend on the quantity and quality of the trained scientists made available to us. This means more education and
  1602
  training in all branches of science, and in order to educate and train scientists and technologists we must have more universities and technological colleges and an adequate supply of qualified teachers to staff them. I think it is true to say that at the moment we are woefully short of all three.
  It is true that France, Western Germany, Russia and the United States are well ahead of us in the training of scientists. It has been said that we must compare like with like and that we have different standards, but it is also true that relatively those countries are turning out more trained people than we are. The Government hope to double the annual output of graduates in science and technology subjects in the next 10–12 years, but even if this is ultimately achieved, we shall still be lagging behind seriously.
  Our industrial efficiency depends on the availability of new products, machines and techniques, and to achieve this we must re-invigorate our research and develop the results of our research. Our future welfare depends upon our degree of success. We cannot afford to neglect any aspect of improvement in industry.
  Apart from our immediate future, we must have regard for future generations, and we can succeed in our object only if the total scientific resources of the nation are properly used and coordinated. It would be a good thing if the scientific resources of the word were properly utilised and co-ordinated. Hunger, poverty, disease and despair would be things of the past in a very short time, but I am afraid that we are a long way from such a Utopian state of world society.
  But we can at least organise our own resources. I believe it is possible. Our scientific and technological advancement ought to be fully planned and coordinated. I suppose that in a capitalist society where private firms compete with each other in the same field of industry, it is rather too much to expect coordination in scientific research. We must expect scientists engaged by private firms to work simultaneously, though independently, along similar lines, each keeping to himself any discovery he makes; and so valuable time and energy are wasted. I gratefully

  1603
  acknowledge that there are certain establishments which co-operate in research, but if we are to advance economically with other countries, far more planning and co-ordination will be required and not a man-hour should be wasted unnecessarily.
  I believe that we must ask for the fullest provision for those interested in the arts. Reference has been made to arts and science. I would agree that there is a place in our education system for arts, but at the present moment and for some time yet the emphasis in the universities and colleges must be on scientific and technological subjects. Training should start as early as possible. Much has been done in our grammar and comprehensive schools in this respect, but training in scientific subjects should not be confined to those schools. Much valuable human material can be found in the secondary modern schools, and an interest in these subjects should be encouraged in those schools.
  I turn to an aspect of science and industry not yet touched upon. Even when we have most modern industries possessing most modern equipment and enough well-equipped universities and technological colleges to continue the process of providing newer and more efficient machines and processes, we have not finished. Have we not seen in some of our most efficient industries stoppages of production as a result of a breakdown of industrial relations? The management of men is in itself a science. I appreciate that we talk about the "art" of managing men, but I think it can be regarded more as a science than an art; and this must be taken into consideration when we discuss science in industry. It is not much use having a well-equipped factory if the men are not prepared to work in it. Consequently, those who are put in charge must be adequately trained to avoid stoppages.
  I think that most people on both sides of the Committee would agree that we have reached a stage in our economic development when stoppages over trivial matters can be regarded even as a criminal luxury. On the other hand, the employees in all industries must play their part in the acceptance of scientific advancement and technical improvement. There may have been a case for
  1604
  the Luddites and the activities of Ned Ludd in the early nineteenth century, but not now. If we are to receive the fullest benefits from scientfic research and technical improvement, it will mean greater production by a lesser number of workers.
  One can understand, as most people do, the apprehension which is felt in certain industries about redundancy which is the result of technical improvement, and when one considers the question of one's own livelihood when redundancy appears, one can well understand the feelings of apprehension. If, however, we are to avoid industrial conflict because of this process, the Government must play their part in the transitional period. I have asked the workers in industry to understand this point, and I now ask the Government to understand it. If we are to avoid any conflict, the Government must at least guarantee a decent standard of life to all the people displaced during the transitional period.
  In conclusion, I say to the Government that they have a very great responsibility in the matters now under discussion. If they are not prepared to accept them themselves, with all the implications of planning and co-ordination of the national resources, which no one can deny are necessary, then they should get out and make way for someone who is likely to do so.
  7.32 p.m.
  Mr. John H. Osborn: Before I develop my own speech, I should like to take up a comment by the hon. Member for Consett (Mr. Stones) on the need for good management; that is, management understanding the problem of redundancy, management that understands the problem of bringing in new equipment. I shall refer later to the particular issues which the hon. Member raised in his speech, because it is no good gaining scientific advances in our laboratories and the scientific advances in our research stations unless we overcome the last hurdle of all, which is applying the results in industry.
  I make no apology for referring to two previous speeches which I have made on this subject. One was in the debate on science last summer, and the other on a Private Member's Motion in April of last year, when I moved a Motion on

  1605
  capital investment in industry. What I said in the first speech still applies now. Capital investment in industry must be wise investment, using all the "know-how" which we have in the country. At that time, I emphasised that management must accept responsibility for the type of investment which is incurred in installing capital equipment and new processes. I also gave an illustration of the need to avoid investing in the wrong type of equipment without adequate knowledge. I would therefore agree with the hon. Member for Consett that the science of management is perhaps one of the most important sciences we have today.
  Certainly, many industrialists are aware of it, as is the British Institute of Management. Our colleges of technology, and, for that matter, our universities, are also aware of its importance as management features as a major part of the courses.
  Today, I want to emphasise some of the practical problems that confront Science and Industry. Some of these points have already been raised in this debate, but I want to ask again how we can best deploy our scientific manpower within different industries, and as the hon. Member for Orpington (Mr. Lubbock) mentioned, in what sectors of the industry should it be deployed. In other words, should we have immediate emphasis in the laboratories or on the shop floor of the factories? I think there has to be a balance between what I would call fundamental research and development, as such, individually in each industry, in each company, and, finally, within the nation as a whole, and that unless we achieve that balance we shall surely fail.
  In the Zuckerman Report on the Management and Control of Research and Development, we have various definitions of research— pure basic research, objective basic research, and, finally, applied (project or operational) research. It is in the last field of operation and development that I think the greatest importance lies at present. That does not mean that there is not a big field for continued pure basic research, but that the greatest need at the present time, as it has been for the last few years, is to apply the knowledge we already have in our factories. That
  1606
  application comes into the improvement of design, the improvement of quality, improvement in testing and in inspection techniques.
  Having prefaced my remarks with these comments, there is need to justify our expenditure on particular techniques and particular testing methods, and, quite often, it is only a large volume of one product going through a factory which justifies expenditure on particular techniques and processes. Turning to the problem of mass production or volume in one factory, I have twice been to the United States and seen industries with which I am familiar. Already, we have had a statement by my hon. Friend the Member for the Isle of Ely (Sir H. Legge-Bourke) to the effect that steelworkers in America have achieved double the productivity of steel workers in this country, for whatever reason. One of the reasons is that in the pure competitive capitalist system which has prevailed for the last half-century in America. Where there has been free competition, it has resulted in a tendency for firms to concentrate on one product so that there is a large volume of that one product going through one particular factory. That has been achieved largely through the antitrust laws, and because management realised the advantage of specialising in one particular line.
  Turning to my own city, Sheffield, several industries there have been visited by industrialists from America, and I have had to outline the fields of activities of at least two groups of companies making certain products. I went through each of half-a-dozen companies in the special steel industry, one of the two groups, to catalogue the types of steel they made, sizes and grades. The hard fact was that the American made me realise that although each firm was a specialist in making small job lots for particular requirements, they were making identical products to each other. There are various industries in which—and this has already been pointed out, and I have mentioned it in previous debates— we have the problem of size. This we have to face up to when comparing our endeavours with those of the United States and, for that matter, with those of Russia.

  1607
  Looking to the future, it is this problem of size which will confront us when we enter the Common Market—assuming, as I certainly hope is the case, that the outcome of the present negotiations is satisfactory. It will be then that many companies will find that we are in competition with factories which are already manufacturing a greater volume of a given product in one factory.
  I should like to give two examples of the problems facing industries and research associations. I have visited several research associations. One was the File Research Association in Sheffield. It has designed and built a file cutting machine the capacity of which outweighs that of the largest factories making files in this country. It has been more or less proved and perfected, but until there is sufficient volume of files going through one factory it can never be used. This is a typical problem that faces this country.
  I also have been round a canning factory where I saw the same problem related to the filling and sealing of cans. The type of machine that would do that with a minimum of labour demands a volume of production almost equal to the total canning of this type of product in this country. This sort of problem has to be faced industry by industry.
  The hon. Member for Chester-le-Street (Mr. Pentland) recalled that he visited the Soviet Union in 1960. I, too, have had the opportunity to go there and see one or two factories in my industry, the steel foundry industry. One factory there is producing 100,000 tons of steel castings a year, which is equivalent to more than one-third of the total production of nearly 100 steel foundries in this country. That gives an indication of the advantage which the Russians have on scale in production.
  In a debate on this subject last year, my right hon. Friend the Member for Birmingham, Hall Green (Mr. Aubrey Jones) raised the question of the scale of research in Russia. I have mentioned the scale of research, particularly in continuous casting, because of the success they have had.
  The British Steel Foundry delegation, of which I was a member, reported not only on the large scale of production—that is, one product going through one
  1608
  factory—and their report is now available in the Library—but on quality and working conditions. The delegation agreed that the quality of the product of the Russian foundries, the working conditions and the safety precautions were well below those we expect in the West, particularly in this country. I asked the hon. Member for Chester-le-Street whether he had merely visited research stations or gone down coal mines. My limited experience—and one cannot generalise from one visit—is that they have the facilities for research but seem to be failing to apply all the knowledge in their research institutes to their industries. Time and again we hear of the achievements of the Russians, but I did not see the great achievement I expected to see on the factory floor. Achievements in high rates of production and high productivity—yes, but not in quality, control, safety and working conditions.
  One feature relevant of this debate is the fact that the most highly paid people in Russia are undoubtedly the scientists. One figure which has been quoted in the popular Press and which confirms information I have had is that a top scientist there earns £20,000 a year. When I was over there, I discussed the relative scales of remuneration of top managers, some in charge of factories employing 10,000, and of scientists in research design centres. Without any exaggeration, I think it is fair to say that the average scientist receives considerably greater rewards than his counterpart, the manager of industry.
  Thus, we have the demand that our scientists should be paid more and that our Government, regardless of party, must introduce a reasonable balance between the rate of reward of those concerned with management and the runing of factories and those concerned with bringing in new ideas, carrying out research and developing those ideas. That is not an attack on management, because I consider that the rewards for managers must always compare favourably with rewards for the highest scientific work.
  My impression—and this is contrary to everything I have heard in this House and elsewhere before—is that while the Russians may be strong in their laboratories, teaching and research associations, their scientists become a strata of society

  1609
  with a status of their own, and many of those who work in research for some time find it increasingly difficult to involve themselves with industrial activities. That has been a problem in this country for a number of years, but in the United States they have overcome it; they have found a way of bringing their scientists to the shop floor.
  I illustrate this point by recalling that a number of Russians in one institute I visited took pride in the fact that they had been there for 30 years. I think that we all would agree that scientists give of their best if they change their environment and field of study periodically. The mobility in this country is lacking in the East. I say all this because time and again we have heard how wonderful the Russians are. I do not wish to underrate their great achievements, but this is not the whole story.
  As some hon. Members will know, a team from the Amalgamated Engineering Union went to Russia, and its conclusions coincided with those my delegation reached. It said.
  "… we found much which surprised us. Dirty, greasy floors full of pot holes, unguarded machines, not too well kept and closely packed together, bad ventilation, women doing many jobs which are the sole prerogative of men in British factories, no break for tea or coffee, factory buildings reminiscent of 19th century British capitalism, sanitary arrangements quite unbelievable—all this rather shocked us."
  Some hon. Members will have read that report. It does not mean that because I have been to Russia I wish to run down their achievements, but it does mean that we should put our achievements in correct perspective alongside those of Russia and the United States.
  One feature of our Western economy is that of competition, which this Government technically supports. I give one example of a product I saw sent from a steel foundry to a factory in Leningrad Which makes steam turbines and hydroelectric generators for electric power. Steel castings going into the factory were of a quality which would not be accepted from a similar foundry in this country or anywhere else in the West. How does it happen that a country that is supposed to have scientific planning fails to achieve quality? One reason is purely economic—lack of competition.
  1610
  The manager of a factory has to accept the product of another. The Russian Economic Planning Committee dictates his source of supply and, because economic co-ordination is weak, technical co-ordination is more unsatisfactory than it is here.
  Then there is the problem of design. Russia has developed under the pattern of its Committees for the co-ordination of scientific development design centres. I visited one centre which designs valves for manufacture in valve factories throughout Russia. The designers are scientists and engineers. They decide what is necessary, but these same men do not have the practical experience of seeing their designs go through all the processes of manufacture on the shop floor. Nor finally do they see the effectiveness of their product when it is put to use in the field.
  In the West, our scientists—and I use the word in the sense of including engineers, designers and development engineers—see the products they have designed and created manufactured and then operated in service. This is an immense advantage which is completely lacking in the East.
  What are the lessons here? I think they are, to what extent should our industry control its own scientific endeavours, or to what extent should scientists dictate the pace for industry? Industry must have the last word as to the form and application of the knowledge that the scientist has produced. The second lesson is that in putting forward ideas to develop our scientific endeavour we must remember that the greatest results are developed inside the factories after the basic knowledge has been acquired from the universities and in other academic establishments. Therefore we come to the control of science. The hon. and learned Member for Kettering (Mr. Mitchison) asked What the Minister for Science did. I think that most important are certain things which the Minister should not do. Perhaps I may refer again to the country Where some of the Socialist theories are logically applied to the extreme—I was a guest of the State Committee for Scientific Co-operation in Russia and met the Minister in charge of the Committee. We had meetings with him. We learned

  1611
  some of the difficulties of a political control over scientific endeavour.
  As many hon. Members will know, there has always been conflict between the scientists and the Communist politicians in Russia and for a long time the academicians held control. In 1957 certain changes were made, but it is only in the last year that Russia has gone a stage further and formed committees for the co-ordination of scientific research. There have been articles in Izvestia and Pravda ventilating the problems. I have translations of these article's which were written. In one case one committee had to review 12,000 research projects to decide whether they should go forward. If the decision whether projects should go forward is centralised, the result is disastrous, except perhaps in the case of a few major projects which would be in the province of the Government. But it would be fatal in this or any country for the Government through a Minister of Science to dominate these decisions. I ask hon. Members opposite to review some of the statements which they made in their pamphlet which was produced last year and to find out the effectiveness of their ideas as applied in Russia.
  What we have in this country is a Minister for Science. He has a liaison with the scientific departments in other Ministries. I am convinced that this vision of how a Minister for Science should work is the right one and the most effective. If he becomes the Minister of Science, logically he starts controlling the whole of our national and private research endeavour. The extravagancies of over-centralisation are familiar to us not only in the economic sphere but politically as well.
  Sir H. Legge-Bourke: Would not my hon. Friend agree that it is interesting that just as pressure is being put on the Government to try to centralise the control of science, in Russia—although they have a long way to go to get the lack of centralisation which we enjoy—they are in fact moving in that direction rather than in the other direction?
  Mr. Osborn: I thank my hon. Friend for that intervention. It is true to say that Khrushchev, particularly, realises how quickly over-centralisation can clog up the flexibility of society not only in
  1612
  the scientific but in the economic sphere as well. If we observe recent reports on his reactions in the last two or three months in the economic and scientific fields, it would be of great value to us in this country.
  This leads me to the relationship between Government, industry and science in so far as we are concerned with the co-ordination of economic as well as scientific development. In the economic sphere we have the National Economic Development Council which has been created and which I visualise, and sincerely hope, will develop in some ways on the pattern visualised by M. Monnet in France, namely, special committees for each section of industry advising specifically on the rate of capital investment, the rate of growth to be sustained and, hence, the type of equipment to be brought in. I visualise these committees, as in France, as joint committees between the members of economic and development councils and the heads of the industries concerned.
  To a certain extent these committees will run parallel to the old trade associations as we knew them which have been influenced slightly by the effect of the Restrictive Trade Practices Act. They could run parallel to the councils now running our research associations, which are essentially co-operative research associations. Before dealing with the co-operative research associations, I would say that it would be wrong to underestimate the effectiveness of research in private industry.
  Some hon. Members were with me when an invitation was given to us to see the effectiveness of research carried out by one company, the Royal Dutch Shell Group, in Holland. We were all impressed by the work which that company had done in seismology and the way in which they have developed new materials to protect steel and reduce the amount of rust and corrosion, which could be of immense value in cutting out waste. This is only one example of something which hon. Members of this House have witnessed.
  I wish to move on to the issue of research associations which I believe are, in their own way unique. They are co-operative associations, admittedly aided by the Department of Scientific and Industrial Research. We have 52 of them. The Minister for Science has

  1613
  done an immense amount with the directors of the research associations. The Parliamentary Secretary has visited many of them and there have been more meetings and co-ordination between the research associations in the last two years than ever before. Each association has a different set of problems. This cooperative effort between industries and the people who run the research associations is an example and something of which we in this country may be proud.
  Various arguments may be advanced. Are we putting enough money, not only from Government sources, into helping the research associations? Is enough being spent on sponsored research on specific projects? Is there more that the Government could do? I have met many responsible directors of the research associations who have complained that they have had to spend too much time asking their industries for money. This is something which hon. Members on this side of the House should not condone at all. Surely it is the job of the director of a research association to concentrate on the work of the association and not to have to go round industry first, admittedly, to sell the work he is doing, but secondly to obtain sufficient money to balance the money which he is obtaining from Government sources.
  Here again we have a dilemma. The Minister has said—I support him—that industry must pay for its own development. The bigger private companies have found it worth while and are reaping the reward. There is a limit to the extent to which industry can call on the Exchequer. But let us remember that the amount spent on research from Exchequer sources compared with the total on research is between 1 per cent. and 1½ per cent. which is surely a small part of the total expenditure on research by the Government.
  We must not under-rate the opportunities before our research associations. I should have been at the annual conference of a research association based on Sheffield which happened to be the centre for a European conference of that industry, the spring research association. We do not realise it, but the example we have set in this country may prove the basis, not far research associations for England alone, but for individual industries in the whole of Europe. This is a new situation of which we should be well aware and take advantage of.
  1614
  Where Government money has been well spent is in the creation of liaison officers, if they can be called such, in research associations. They have a dual function. They can make personal visits to factories, first to tell the managers about the latest scientific and technical developments in their industry, but secondly to bridge any gaps in understanding between our industries on the one hand and the universities on the other. They have the opportunity of ensuring that research is directed towards shop floor problems.
  I would not agree with the hon. and learned Member for Kettering that we on this side of the House have anything to be ashamed of in our progress. Progress is slow but sure and our cooperative research as such, in conjunction with the work of the D.S.I.R., is something which I believe will become the envy of the Western world.
  I am satisfied that, by way of an interim report, the Government are making satisfactory progress in co-ordinating the activities of science and industry.
  8.2 p.m.
  Dr. Jeremy Bray: The hon. Member for Sheffield, Hallam (Mr. J. H. Osborn) has fulfilled a very useful purpose in trying to hand out and allocate bouquets among different aspects of research in industry. His interest in scientific matters in his own constituency is particularly commendable and an example which should be followed by other hon. Members, but I cannot entirely agree with this allocation of credit.
  We should not measure performance of scientific research simply by the volume of effort applied to. We should look at how effectively the resources are used in proportion to their opportunity. When we look at the research effort of the chemists across the road, or the "Shellephant over the river, I do not think this Committee or industry in general should allow themselves to be entirely bamboozled, blipped on the head, by what they are told and what they see. I have indulged in a certain amount of head blipping before entering this House. It is the easiest thing in the world to put across to laymen a totally false idea of how effective research is in relation to opportunity.

  1615
  This brings me to what I think is a vital aspect of Government policy towards industry. We can advocate ways of spending money, and I would do so. We can certainly advocate specific projects in which the Government should interest themselves, long-term projects. I would instance the continuous manufacture of steel, the extrusion of fabrics produced from the polymer state, and the piping of computing capacity just like electricity and gas to wherever it is required. These are coming, but they will come only if there is a liveliness of approach from the Government and an initiative which we do not have today.
  What more general stimulants can the Goverment apply? I suggest that the Government should do all they can to foster mobility between and within various organisations concerned with research and the application of research in industry. I think particularly of the question of transferability of pension rights. It is a tremendous loss to a man who has to change his job after he has been working for a firm for 10 years and loses his pension. It is also a loss to him in terms of status within the firm. We can take relatively simple steps in Parliament to lubricate the passage of people in the technical world simply by requiring that pensions shall be transferable.
  It is not only people we want to move and be free to move, it is information. The House was concerned recently about a take-over bid by I.C.I. for Courtaulds. It felt a certain amount of foreboding at the arrogance of some of the parties in that affair. Was this the behaviour to be expected of the technological giants of the future? Is this the state into which we are moving with the development of modern industry? Certainly I think it was not only the feeling in the House but in the country at large that the difficulties would be lessened if some of the results of that take-over bid were more generally felt in industry, particularly the publication of the information.
  Why is that important in research? It is because we cannot isolate research from the whole body of activities of a firm. We must see research in relation to the process of investment and the process of manufacture and sales. We cannot do this unless we have some
  1616
  means of measuring and knowing what is going on in the concern as a whole. A specific measure which I think would not be going beyond the point of view of hon. Members opposite would be to require the publication of accounts of industrial units of a certain size with a turnover of, perhaps, £50 million a year. That would not be exactly interfering in the private business of individuals. If we required separate divisions of I.C.I. to publish accounts and separate companies of Shell to do so we should have a very much better idea of which were the growth points, which were the effective points for the application of more research and the quicker application of research, but we do not have that information today.
  Why is it important to publish this? Can it not be pushed round in the "old boy" net, as it is already to a certain extent? I think not, for the reason that power within organisations must be accountable to a larger public—hon. Members opposite would say the shareholders, and we would say the public at large. Surely it is not requiring too much that the tradition of science of the free publication of information should be extended to cover the whole range of activities of large-scale industry.
  In this Committee, when we talk about the application of science in industry we are in grave danger of the pot calling the kettle black. Much of what the Parliamentary Secretary said in his mare eloquent passages would, I think, be dismissed in industry among people with whom I recently worked as so much "flannel". They are well used to it. But he said one very wise thing, that science can be applied only by firms which are intellectually convinced of the importance of research. The root of the trouble in the attitude of the Government to research is that they are not so intellectually convinced themselves. In particular, the Minister for Science is not. I shall quote in support of this the "Song for a Minister of Science" which the noble Lord no doubt caused to be published in the Observer on Christmas Day, 1960. The Observer said that Lord Hailsham's family Christmas card contained this song:
  "Sing a song of particles
  Infinitely small
  Tissue cultured specimens
  From off your stomach wall.

  1617
  Take mesons from a synchroton
  To fix the hellish brew—
  For proton and electron,
  That's me—and you.
  But tell me, dear Professor
  Explain it if you can
  If microscopic entities
  Are all that's left of man.
  Yes, tell me, dear Professor
  Explain it if you please
  Why men through countless ages
  Have believed they're more than these.
  If our love is but a hormone
  And our eye an optic lens
  And beauty but an enzyme
  Why is homo sapiens?
  For if Descartes was a donkey
  And I'm sure you'd have him so
  You'll have to rub out not just 'sum'
  But also 'cogito'."
  Witty and clever—yes. I am sure hon. Members would wish that so capable and witty a man could join in this debate now. But I assure them that people were irritated that such sentiments were expressed by a Minister for Science. I know that he wishes to make the point that people believe in things beyond the range of science, but in that poem he is addressing himself to the point of view of the old men of his youth; the old men who saw science as something alien to ordinary everyday life, and alien to the outlook of what the noble Lord would describe as a liberal education.
  That is not so today but, in any case, it is certainly not the attitude that one expects of a Minister for Science today. When I listened to the Parliamentary Secretary, I almost felt that he was beginning to regret his misspent youth at Cambridge, and thinking, perhaps, that he should have studied science. Whatever his feelings may be on that, there is no doubt that this Government are saddled with an attitude to science which people in industry feel is completely alien to their own.
  The Parliamentary Secretary said that the Government should be propagandist rather than executive in scientific matters. He instanced the value of operational research to private firms, but I should like to quote from a letter I received the other day from the President of the Operational Research Society, in which he says:
  "Operational research workers have slowly but surely come to the conclusion that it is at the national level of planning the economy, as well as in the influence the Government has
  1618
  on the strategic decisions about individual industries, that our science has its greatest part to play."
  In other words, the practitioners do not at all share the hon. Gentleman's point of view.
  The wisest words that have been said in this debate so far are those of my hon. and learned Friend the Member for Kettering (Mr. Mitchison), who described the function of research as being equivalent to that of manure—an earthy phrase that blows away all the myths and prejudices with which people today regard science. We should see science as the start, the initiation, and research in industry as the launching point from which we get a cycle of activity in industry which extends through development and the design and construction of plants, a productive period, and an eventual replacement by some new process, some new industry.
  We should apply that idea to every industrial activity today. We should apply it to established industries. We should expect electronics to become obsolete within our own lifetime. Why? Because the stuff will be made by the machines themselves, and be designed by them. We can certainly expect the older industries to grow through their present phase and be replaced, but we cannot expect that to happen if we do not adopt a realistic political attitude to the social consequences of science.
  The business of science and industry is essentially a family affair. The sons of miners from Durham come to work at Billingham, designing and inventing processes which mean that the work of their old fathers is no longer required. It is nonsense to turn the work of the sons against the fathers, but that is what we are being forced to do at present by the failure to foresee what is happening.
  If we ask the director of a chemical company what he sees in the way of the development of his industry, its effect on local employment and the demand on other industries over the next five or ten years, he will shrug it off as an impossible question to answer. The Government must not allow industry to get away with such a slapdash attitude to present-day problems, but they will if they just go on merely making the polite noises the Parliamentary Secretary made about the

  1619
  application of research. They will find that they have all hell let loose upon them.
  Today, the science-based industries are like a rocket a few seconds after ignition, just quivering a few feet off the launching pad, and those of use who work in industry, who know what is going on and feel it in our bones, know that the rate of acceleration really requires much more vigorous action in the fostering of research, in the attack on the strongholds of conservatism in industry, and in the acceptance of social responsibility, than we have from the Government today.
  8.18 p.m.
  Mr. Basil de Ferranti: I am glad to have the opportunity to follow the hon. Member for Middlesbrough, West (Dr. Bray). He speaks as a scientific worker. I am not too sure that I agree with him in his rapid writing off of the electronics industry, in which I should now declare an interest, but I agree with the tenor of much that he said. If we could only have more people like him in the House, able to put across to hon. Members something of the excitement, the feeling of acceleration that is undoubtedly there today but which it is difficult for us in the Palace of Westminster to be able fully to understand, they would be doing a very great service.
  It is really rather difficult for us in this debate to make up our minds what we are talking about. Science is an enormous subject. It affects every aspect of our lives. There is the scientific method, the scientific way of looking at almost everything. The hon. and learned Member for Kettering (Mr. Mitchison) referred to science as manure but, quite honestly, I do not think that that is quite fair. It will certainly catch and hold people's attention, but it is not strictly accurate.
  One can only say that science is the discipline of observation, and the consequent measurement of one's observations. Measurement and observation are not really very suitable subjects for debate in this Chamber. Hon. Members would rapidly go to sleep if we were to spend any time at all on them. As my hon. Friend the Member for the Isle
  1620
  of Ely (Sir H. Legge-Bourke) pointed out, one must make these things human for them to be of interest in this Chamber. But in the language of politicians, the old theme is that industry is hopelessly old-fashioned and something should be done about it.
  This subject, which is highly suitable for debate, has aroused a certain interest today. It is something to which I should like particularly to refer. The first point that affects this is something which the hon. Member for Middlesbrough, West touched on; that is, our national attitude towards science. We have, on the one hand—and I think that the hon. Member represents it—a growing scientific generation, the product of technological institutes in which the Government are wisely investing money. This generation feels somewhat frustrated because they feel that their point of view is not really being represented.
  On the other hand, we have the sort of imagined forces of prejudice—the centres of conservatism, as the hon. Member for Middlesbrough, West called them—doing all in their power to resist progress and the introduction of the scientific method. I think that the hon. Member for Middlesbrough, West slightly exaggerated the position. Typically, he mentioned the automatic transmission of computer data. But when one comes to look at these things—when the unreasonable forces of conservatism get down to working out the £ s. d.—one finds that it is much better to put one's magnetic tape decks in a motor car and drive them about the country than to install an extremely expensive micro-wave link.
  Dr. Bray: It would seem that the hon. Member for Morecambe and Lonsdale (Mr. de Ferranti) is not completely familiar with all the automatic linkages used in some of his own company's products. Considering, far example, the hon. Member's own field, can he say whether there is any industrialist today—one responsible for a turnover of £ 10 million or more, not a very large sum by the standards of big industry—who has ever written a computer programme?
  Mr. de Ferranti: I can modestly claim to have done that, to some degree, myself. I wonder if the hon. Member for

  1621
  Middlesbrough, West has? Perhaps he has. If so we might get together and compare notes. In any case, thank heavens that these machines are at last beginning to speak English, for this is making it easier for us all.
  The first place in which people look to find their views represented is the House of Commons. It is fair to say—and the hon. Member for Middlesbrough, West will discover this after he has spent a little longer here—that science and Parliament have got along quite well together for many years. There has been an institution known as the Parliamentary Scientific Committee in existence for a considerable time and this Committee has done some extraordinarily good work. If the hon. Member is depressed about the attitude of the House of Commons towards science, I urge him to come to some of the Committee's meetings. He will see that the number of hon. Members interested in science and who understand the problems involved is quite large.
  The next place one looks to is the Civil Service. I am afraid that it is true, perhaps as a result of the Civil Service Commission's methods—for which it is not to be blamed—that the number of scientific people in the administrative grades is not as great as it should be. This makes it difficult for scientists in Government administration even to speak to the administrative grades and, at the same time, feel that their case is being understood.
  Far be it from me to suggest that there should be vastly mare scientists in the administrative grades of the Civil Service, for scientists can be among the worst administrators known. But it is important that all people in the administrative grades of the Civil Service should have an understanding of the simple methods of observation and measurement which are the basis of science. It is no good saying that wage increases have been too great. One must state specifically by how much they have been too great and then someone will listen. It is most important to reduce this kind of qualitative argument and increase the quantitative kind of argument.
  The next place one looks to is the Cabinet. I believe that in the present Cabinet we have a number of Ministers
  1622
  who are well aware of all that is involved in the scientific method and who are taking decisions with a scientific bent much more competently than in the past. There is no doubt—and I can see the Bow Group magazines in front of the Treasury Bench— that we have made a number of bad mistakes in the past. For example, we have invested in nuclear power stations which are not economic. Enormous resources—enormous certainly compared with a scheme I seem to remember in Africa for the growing of peanuts—have been put into nuclear power stations which are all likely to be uneconomic compared with the more advanced types of power stations now coming along.
  We have spent vast sums on railway modernisation and I doubt whether full quantitative analyses were done to ensure that these vast sums would be wisely spent. However, there seem to be signs that decisions will be taken with the scientific method in mind. For example, the establishment of the National Economic Development Council is an idea of beginning to apply scientific method to the Chancellor's handling of the economy, so that instead of driving the car of the economy by the seat of his pants, he will be given some detailed quantitative information on where to place his decisions.
  Of course this information, as with all scientific information, will need to be carefully analysed and people will need to discover the meaning of the figures that are put forward. This all starts, as the hon. Member for Cardiff, West (Mr. G. Thomas) mentioned, in our teaching establishments. In this connection, there are one or two comments that it is important to make, particularly as my hon. Friend the Financial Secretary will reply.
  The universities have had a special relationship with the Treasury and this has, undoubtedly, put them in fairly good stead over the years. Many millions of pounds have been spent on the universities and, despite what anyone says, they are not doing too badly at all. The question of salaries is also important. To same extent university salaries seem somewhat like hon. Members' salaries; they are only fully adequate if the university lecturer or the hon. Member does some outside work as well.

  1623
  I am not sure that this is not just exactly as it should be. Hon. Members should take outside work, for they are better hon. Members for it. I believe that university lecturers should also take outside work because it enables them to maintain that contact with industry and the world art large which is of fundamental importance to the successful use of our universities in our national life.
  What is true for them is also true for the colleges of advanced technology which are gaining a very great reputation indeed in industry. The quality of the sandwich course graduate is extremely high and he has learned a number of things during his course which many university graduates have not learned. The sandwich course graduate has learned, for example, how to get a nut and bolt out of store—quite a difficult operation to perform in many factories. And a little bit of good straightforward low-down cunning can be taught during the six months' period in industry which the more idealistic graduates will never know.
  I am not so happy about the new universities and their approach to applied science. I have a feeling that many of the new ones are saying to themselves, "The colleges of advanced technology are being set up to deal with the technologists. Thank heavens, we need not do anything as sordid as applied science and we can get on with the more intellectually exciting tasks, such as history and geography". This would be an unqualified disaster if it were allowed to continue. I ask my hon. Friend the Parliamentary Secretary to the Ministry for Science that when he goes about asking what is going on he should make a particular point of ensuring that the new universities are establishing the best possible faculties of applied science that are to be obtained.
  What about this problem of industry? The first thing to understand is that industry, or private industry anyway, by its very terms of reference must do exactly what suits it. Industry must make a profit. If a management appears to be slow in installing some equipment the probable reason is that it simply does not see any opportunities for increasing its profits or improving its competitiveness by installing it. The first task of
  1624
  Government in relation to industry is not to keep standing up, as they do, and complaining about how old-fashioned, ignorant and stupid the average industrialist is, but to set about creating the environment in which industrialists are forced to take the most modern and progressive attitudes and to adopt the most modern and progressive techniques.
  There is one thing of overwhelming importance which the Government could now do in this respect. The Chancellor of the Exchequer took a swipe at it in the last Budget but one, but unfortunately did an air shot. I refer to the possibility of what is loosely called a payroll tax. One job which the Minister for Science should be doing is urging upon his Cabinet colleagues, from the scientific point of view, the introduction of a payroll tax. A straight tax which would increase the burden on industry is of course not acceptable, but a tax in which the corollary was a pro rata reduction in Profits Tax on the firm would achieve the effects in which I am interested. For instance, about 6s. 6d. a week per person employed paid by the employer would enable the Government to eliminate entirely that so-called Profits Tax.
  I remember once asking a friend of mine in Italy to what he attributed the incredible success of Italian industry, particularly in the north, since the war. He replied, "It is quite simple. Here in Italy we never pay our taxes." There is no doubt that if industry does not pay tax and has more money available it is more likely to invest in advanced scientific equipment. And if industrialists are not only paying reduced taxes on profits but having to pay increased taxes on the payroll it is worth investing more to save man-hours in the factory.
  The first reaction generally to this argument is that surely one would put a lot of people out of work. This process of investing in equipment to save labour is the thing which we in this debate are trying to urge industrialists to do, and which we must do if we are to achieve the sort of 4 per cent. growth rates which the National Economic Development Council is now investigating. One puts the tax on the payroll and reduces the tax on profits, and this provides more to invest and more incentive to invest.

  1625
  I cannot understand why in the last Budget the Chancellor of the Exchequer did not introduce such a tax. I hope that the Financial Secretary will be able to spend a minute or two explaining this when he replies to the debate. I have a feeling that the reason was that he met a good deal of opposition to its introduction, and I cannot but think that he had a number of inefficient companies making representations to him, because it is only if one is inefficient that one has anything to lose by this tax. It is only if one is not making much of a profit that one has anything to lose by it.
  The Financial Secretary to the Treasury (Sir Edward Boyle): I may be a little short of time later, so, perhaps, I may reply to my hon. Friend on that point now. Last year's proposal was for something rather different, for a surcharge on the employer's contribution. My right hon. and learned Friend decided not to ask for this proposal to be accepted again this year. As regards what is conventionally known as a payroll tax, it has always been recognised that this would involve certain very important consequentials. If we embarked on such a tax, we should have to consider the whole range of industrial taxation, Profits Tax, and the like. My right hon. and learned Friend has not come to a final conclusion on the matter. As he has said, he thinks that it requires further study. All he has done this year is just not to ask again for approval of last year's rather different proposal, which was just for a surcharge on the employer's contribution.
  Mr. de Ferranti: I quite understand the point which my hon. Friend makes. I was aware that that was the position and that the Chancellor of the Exchequer was still looking at it. That is why I thought that it would not be inappropriate to add a few comments from the scientific point of view on the possibility of introducing such a tax. I hope that my hon. Friend will convey what I have been saying to his right hon. and learned Friend. Perhaps it will swing the balance in favour of the introduction of the tax. Undoubtedly, it is these general measures which do the most good in getting a scientific outlook in industry. We can talk till the cows come home about all the various ways of improving this, that and the other but, unless we have
  1626
  the basic conditions right, we simply do not get what we want.
  There is another basic condition which is worrying for many scientists and engineers in this country today. Obviously, we cannot afford much of a space research effort. It is galling to sit by, as one did last night and the night before, to watch the progress of the Telstar experiment and to know that the Americans are doing it all. We just have our little receiver at Goonhilly Downs, which, I am glad to say, worked well, but what a pity it is that we could not have been pioneers in this great effort in the same way as we always have been pioneers in the past. We cannot afford it, but what we can do is to work for the formation of international groupings which will enable us to regain a pioneering lead or be associated with an economic unit which is capable of taking a pioneering lead in these most important new developments.
  One talks to colleagues in the House of Commons and one mentions the subject of space research and the Telstar experiments, and how dull it all seems. How incredibly unexciting and uninteresting a subject for Parliamentary debate. But these are the modern equivalent of the explorations of Columbus, the modern equivalent of the exciting advances which people really did become enthusiastic about in centuries gone by. Unless we can learn what these things are about, unless we can catch the excitement, this country will have failed and will go down as an unsuccessful and disappointing flash in the pan of world history.
  Of course, the Government can do a great deal to help. I have tried to show how, by imposing a tax, the Government could create the right environment. We have heard from most speakers that the Government ought to spend more money. One of my suggestions would enable them to use a new source of revenue. There are certain specific things which the Government can do which act as a catalyst, to use a scientific term. There are the development contracts which my hon. Friend the Parliamentary Secretary mentioned. Reasonable progress is being made with them. The hon. and learned Member for Kettering asked why we did not go faster. It is not so easy to go faster

  1627
  when one actually comes to the problems involved. As I know from a little experience of these matters, there are all sorts of difficulties. The various people in the Departments concerned have been working very hard and have reaped a certain amount of success. I believe that they will reap more in the months ahead.
  Undoubtedly, the research associations do valuable work, although I am not sure that I go so far as my hon. Friend in suggesting that the chairman of every company should be knocking at the doors of the research associations. I imagine that the research associations would be rather fed up if they did because, to put it frankly, the Chairmen of many companies are not really the right sort of people to take part in technical discussions. My hon. Friend should not expect too much of the research associations. Undoubtedly, they have a most useful rôle to fill, but it is a secondary and rather uninspiring role, a role for which they do not receive very much thanks.
  If I do nothing else tonight, I want to thank the many people who are practically concerned with the research associations for the good but uninspiring work which they do. I think that we have made a fair number of mistakes in the last 40 or 50 years due to a lack of scientific knowledge throughout all sections of our society. I have mentioned some, like atomic energy and the railways. But now we seem to be on the right lines. We have the National Economic Development Council, we have signed the European Space Research Organisation Treaty and, most dramatic of all and more important than anything else we have ever done, we have made application to join the European Economic Community. These things are indications, perhaps results, of the technological revolution in which we live.
  I believe that we have in the Government a body of men who are cognisant of what is going on, who are prepared to view things from a scientific angle, and who will, if anybody can, lead us into the El Dorado that is undoubtedly there if only we have the guts to go and get to it.
  8.42 p.m.
  Mr. Sidney Irving: Perhaps the most fascinating part of the debate was when the hon. Member for the Isle of Ely (Sir H. Legge-Bourke) dashed to the rescue of the Government and of the Parliamentary Secretary in particular. We all know that it is an activity on which he does not spend very much time as a rule and, in view of his remarks about fuddy-duddies and his earlier forays in this field, the Parliamentary Secretary may well believe that his support on this occasion is perhaps the kiss of death rather than the support he would like to have.
  My hon. and learned Friend the Member for Kettering (Mr. Mitchison) put a straight question to the Parliamentary Secretary: what does his Office do? The Parliamentary Secretary worked on the thesis that the less one did the mote marks one was entitled to expect. I listened with great care. He said that his noble Friend is interested in many subjects. He said that he talked to some of his right hon. Friends, and the Parliamentary Secretary waxed so enthusiastic about his noble Friend that he said that on certain occasions he is immensely interested in some of the things that he does.
  I cannot find, except in his statement that he supported ate bright boys, any positive proposal for bringing about the expansion of scientific knowledge in industry. The Parliamentary Secretary by his speech might have succeeded in getting a Ph.D., but he did not answer any of the urgent questions which we on this side of the House want to know about. We want to know what initiative the Minister is taking and how it differs from the functions carried out by the Lord President of the Council. We do not believe that propaganda is enough. Exhortation will eventually fail. What steps then is his noble Friend prepared to take?
  Some of us in the debate last year drew attention to the Report of the Advisory Council on Scientific Policy. We drew attention to the complacency of its estimates on the supply and demand for manpower, on the limitations of its comparison in financial terms with the United States effort, from which it derives a great deal of satisfaction, and to

  1629
  the inadequacy of the machinery available to the Minister for Science for dealing with these problems. Nothing that we have heard since, and certainly nothing that we have heard today, has made us any the happier about that state of affairs.
  The hon. Member for the Isle of Ely complained about our making comparisons with the United States and other countries. What galls hon. Members opposite is that in the past five or ten years the comparisons and league tables have been so unfavourable. They have no hesitation in quoting them if ever they can find one that is favourable to their cause. In the last few months there have been two reports which show clearly the position in relation to our effort compared with the United States. First, there was the F. B. I. survey, Industrial Research in Manufacturing Industry, 1959–60, and an article in the May issue of the National Institute's Economic Review Research and Development: A Comparison between British and American Industry. The point that emerges clearly from these two statements is that on any relevant criterion American effort is very much greater than ours.
  America spends five times as much as we do on research. This means that their expenditure is three times as large per employee and, despite what the bon. Member for Ely said in an intervention, he will see from page 21 of the Review that in terms of the percentage net output the American effort is twice as great as ours. If we compare the 350 largest American firms with the 350 largest British firms, we find that the American effort in this sphere is five times greater than ours. In terms of manpower, it has five times the number of qualified scientists that Britain can dispose. This means that there are thirteen scientists and engineers for every 1,000 men working in American industry compared with five in Britain.
  Only when we consider the return on investment do we see the significance of some of these figures. The 350 largest firms in America employ about 5,000 people each whereas the 350 largest firms in this country employ about 2,000 people. Because of the scale, any given expenditure in the two countries will obviously provide bigger returns in
  1630
  relation to the American effort than it wild in terms of the British effort. On this basis, a large country like America does not need as much research in relation to the real output of its industry as a small country like ours. There is also the relatively higher cost of development in smaller firms which must work against Britain and give America a better competitive position than that which we can enjoy.
  Another interesting and significant feature brought out by the Report was the broad association which was discovered between growth and research activity. Clearly, if we wish to expand we can do so only by greater expenditure on research. Invention and innovation are vital to our development: a condition of our expansion and, I believe, of our very survival is that we ensure that research expenditure is much greater.
  Perhaps we cannot hope to rival America, but for a country which needs to expand and to develop its exports to survive we can compete only if we make better use of our smaller resources. Therefore, we need first a much greater concentration of effort. We need a greater expenditure on our research associations and on the National Research and Development Corporation. I believe that the Minister for Science's Department, properly organised, has a part to play in this. We need to continue the trend of mergers between our research associations and to have more research agreements between private firms. I believe that we should be extending what has been taking place in perhaps a limited way, namely, the new policy of the D.S.I.R. of placing larger civil research contracts with firms in industry.
  To take research associations, the Parliamentary Secretary said that, for the £6 million invested, industry gets a return of £100 million.
  Mr. Denzil Freeth: I quoted that as being the opinion of Dr. Gill, Chairman of the Committee of Directors of Research Associations.
  Mr. Irving: We can put this in perspective by realising that half of the more than fifty research associations have a total annual income of less than £100,000 a year, much less than the annual expenditure by a large British

  1631
  firm, and that only nine research associations in this country have incomes of more than £250,000. Not one of our research associations has an income half as great as that of the largest American firm. Obviously, our research associations do not have adequate resources for development work, and, despite the efforts over the years, for which, I thought, the hon. Member for Morecambe and Lonsdale (Mr. de Ferranti) sought to give too little credit, the total share of the research associations in industrial research has been declining.
  In the F.B.I. Report it was made clear that we have at the moment a standing vacancy of 13 per cent. in our industrial research and development departments. It said that there was no doubt that a substantial number of research projects were being held up for lack of staff and pointed to the fact that no single effort could make such a big change in performance as an increase in the number of scientists and engineers available.
  Shortly after the last debate the National Foundation for Science in the United States, which advises the President, published a report, "Investment in Scientific Progress, 1961–70". This was a fresh examination of the relationship between national prosperity and scientific endeavour. Its main conclusions were, first of all, that scientific talents were scarce resources which must be nurtured and developed at all costs if the nation was to secure its full well being. It said that there must be a steady increase in the numbers of young people becoming scientists if the nation was merely to maintain the status quo and that it would be only if there were an increased effort on the part of the Americans that they would be able to double their numbers by 1970.
  This is in marked contrast to the complacency of the Advisory Council on Scientific Policy, some of whose statistics have been questioned in the New Scientist as being slapdash. Its estimates of the demands for scientific manpower are very questionable indeed, because the Council bases its estimates on what is said was the tendency of large-scale industry not to employ more scientists and technicians in relation to total employment once it got to a certain size. This is not
  1632
  true, certainly of I.C.I., which has a good record of using scientists and technicians, and continues to increase the percentage of scientists and technicians it employs. To my mind, this assumption of the Advisory Council is a hazardous one.
  The American report also said that the target should be that every young person who shows the desire and the capacity to become a scientist should be assured of the opportunity to do so. It also reported that at the present stage 2 per cent. of the United States' gross national product spent on research, excluding defence, is not adequate to their needs. As our Advisory Council based its previous figures on this assessment of the American effort.
  I believe we want a new look at this whole problem, for if this is true of America, with its great natural resources, how much more true is it of Britain, which is an over-populated island, which has to import something like half its food, which has very limited natural resources, and only its own natural talents to depend on. And yet, where the Americans are expanding their effort, we seem to do exactly the opposite, because whenever we have been in any trouble it seems that the first cuts in expenditure are on education and on scientific research.
  Last year we had the example of the £1·2 million on the two radiotelescopes being held up—and that was in a field in which we had made an outstanding contribution, and that cut could have damaged the lead which we had. Then, in education. we had cuts in minor works which in my constituency held up at both grammar schools the provision of much needed laboratory accommodation. But we also had the Government's strange conduct in connection with the quinquennial grant to universities. After asking the advice of the University Grants Committee on the cost of providing 151,000 places by 1966 they asked the universities to provide 150,000 places for less money even than the University Grants Committee itself had recommended. I think that at least two universities have said that it is impossible to increase the numbers as they wished to do and as the Government intended that they should. Incidentally, the Association of University

  1633
  Teachers, in looking at the figure of 170,000, draws a comparison with the provision of the Scottish Education Department, which is proposing to provide 34,000 places by 1976. The traditional ratio between Scotland and England and Wales has always been six to one. If Scotland is right in this case, then only three years after the target of 170,000 has been achieved, we shall need at least 200,000 places. Scotland is going ahead much faster than we are, and leaving us trailing behind. If the Scottish estimate is right we ought to revise our figures.
  I want to refer to the arguments about the quinquennial grant. For the previous quinquennial grant the average annual increase in students was 4,000 but the average increase in the grant was £4·5 million. If we take the target of 170,000 to be achieved by the 1970s, it means an annual increase of 8,000 students, but the new quinquennial grant provides for an average increase in grants of only £5·6 million. The Government are seeking to get twice the number of students for only just a little more than the cost of the previous grants, and anyone who knows their arithmetic knows that this cannot be done.
  May I give some other factors which make the quinquennial grant figure irrelevant to our needs? The grants were announced last year, but last year the increase in building costs alone was between 12½ and 20 per cent. A number of other factors erode the amount to be provided and make it impossible for the target to be achieved. For instance, the rising costs of all the things which need to be purchased, were estimated by the Vice-Chancellors' Special Committee as £4½7 million from the time the estimates were given to the University Grants Committee to the time the grants become operative. In addition, the figure includes a sum of £1 million previously paid by D.S.I.R. and now to come out of the grant.
  The new grants which have been approved have also to provide for the normal yearly salary increases which have to be paid over the period. The new universities will require a much bigger proportion of the grants than the older universities, and this makes it much more difficult for the programme
  1634
  to be achieved on these figures. There are a number of other factors which erode the figure which has been approved and make it impossible for the programme to be achieved in the sum of money available.
  The necessary expansion in development and research cannot be achieved under the present arrangements under the Ministry for Science. It requires a Department which has overall supervision of the whole of our research activity—a department with its own staff and its own estimates, capable of encouraging, co-ordinating and concentrating our efforts to a much greater degree than has ever been done before. Today we have been discussing means not only to our future prosperity but to our very survival. This expansion of our programme is the minimum price which we must pay for keeping up in the modern world. I believe that our time is running out and that if we do not take a more realistic view of our needs before very long, we may fall irretrievably behind.
  8.59 p.m.
  Mr. Austen Albu: I share the disappointment which has been expressed in the Committee at the poor attendance for this important debate. I feel that the House of Commons is not really in tune with public thought and feeling outside. This is especially so among that growing class of young scientists, engineers and technicians who are beginning, belatedly, to come out from our educational institutions and training schemes. I was, however, gratified that some of them were able to make speeches in this Committee today. I hope that we see more of them in future.
  The importance of the subject to the House of Commons and to Parliament in general arises from the growing size of the problems raised by developments in science and technology, problems which are posed for Parliaments and Governments throughout the world.
  In the current issue of Dœdalus, the American quarterly, Raymond Aron has written that
  "rulers of our era have to resolve three types of problems which did not exist (at least to the same degree) in the past and which are 'scientific', but in three different ways. The

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  first category is that of properly economic problems: what must be done when a recession begins or when gold reserves begin to diminish? The decision must be made by the rulers, but it requires intellectual training.
  The second category of problems originates in the natural sciences. In what direction should scientific research be directed? How should available funds be allocated among different institutions? Given the actual or probable costs of different sources of power in a few years, what programme should be adopted for thermo-hydraulic of atomic power stations? What armament programme will promote over a five-year period a maximum of security or, if war breaks out, the best chance for survival.
  The third category is that of the problems of diplomacy. Should one sign, or not sign, an agreement with the Soviet Union on the cessation of nuclear testing, even if the means of inspection do not guarantee that the agreement will be respected".
  In these matters, it is for the Government or a responsible Minister to make the decision. The advice which they receive from scientists, as from others, is frequently conflicting. It is obvious that no Minister—or civil servant for that matter—can be expert in all these fields. What there must be, however, is a suitable organisation of scientific advice and a degree of professionalism within the Civil Service to ensure that the best decisions are taken. It is our criticism on this side of the Committee that that organisation does not exist and that the amateur tradition of our Civil Service and of much of British industry is a handicap to the best use of scientific knowledge, particularly in the Government.
  The problems proposed by Aron were largely practical problems: the material of the applied natural sciences or of the social sciences. I have no objection to approaching this matter in a materialistic way, because I happen to believe that the democracies will depend for maintaining their democracies, and we in this country for maintaining our liberal traditions, on the maintenance of an expanding economy. I do not believe that this is possible unless we have much greater application of science in our general daily life, particularly in industry.
  I do not like the distinction which is often drawn between pure and applied science, with the implication that purity has some merit that the application does not have. The truth, which has been
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  mentioned during the debate—it was referred to by the Parliamentary Secretary—is that much basic research is done with an objective in view. Equally, much applied research or development uncovers the need for basic research.
  When people have said to me that the Soviet Union cannot conduct research seriously because the Government controls it, that is a lot of nonsense. Of course, the Government order a sputnik, but what happens then? The man who is in charge—the President of the Academy of Sciences—says, "Very well. If you want a sputnik, I want so many billion roubles and so many thousand men." By the time one gets to the bottom of the pyramid, one is down to people doing pure research, which no Government control at the bottom. Therefore, the connection between pure and applied research is often very close.
  In any event, much fundamental research consists of nothing but the repetition of dreary experiments, while in engineering development one needs a high degree of inspired imagination. There is a continuum between fundamental research and engineering development.
  One of our problems is that in this country, as Sir Willis Jackson has pointed out, some scientists have criticised as inferior the translation of scientific investigation into engineering achievement. Yet it is on this that our whole economic future depends. I think we can see the results of this attitude in one or two things going on in the administration of science at the present time. I believe it may well be that the cause of the troubles of the Atomic Energy Authority at present is that the policy has been controlled too much by scientists and not enough by technologists and industrialists. I am shocked that the Government should have set up a committee to study the organisation of civil science which contains not a single technologist. It is true that two of the membership of five are distinguished scientists—they are not necessarily very young but they are distinguished and they are both pure scientists—but there is not a single technologist. The balance seems to be quite wrong.
  In the Report of the Federation of British Industries, to which reference has

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  frequently been made in the debate, Professor Williams draws attention to the apparently higher proportion of basic research being carried out in British industry compared with American industry, although the article in the National Institute Economic Review to which my hon. Friend referred points out that the research expenditure of American industries in real terms is nearly three times per employee and twice as a percentage of net output compared with British industry. Professor Williams suggests that it may well be the result of our system of education which is biased against the training of technologists and development engineers. This seems to me to emphasise the need to press on vigorously with the expanding of not only the engineering departments of universities but also the colleges of advanced technology which are beginning to make—it is still very small—a growing contribution to our scientific and engineering manpower.
  I am afraid that it is a fact that the traditions of our engineering education and training are, or were until recently, out of date, and they need changing. I think that at last this is going to happen and that we shall find ourselves approaching nearer to the standards of our competitors overseas. In developing our own systems we shall develop systems which are original and we shall also be able to take the best of the others which have gone before.
  Above all, this finding about the attitude towards technologists in British industry and in our society may well point to what the Parliamentary Secretary referred to as one of the main problems of British industry, which is not the inadequacy of research and development, though that may be inadequate, but the lack of a scientific attitude in management itself. The great need in British industry is for innovation—new products and processes. In the world of the future we cannot hope to compete on price. We must, of course, compete on price as well, but this is not the way in which we shall be able to hold up our heads in world competition. We must compete on originality of products and quality.
  Unfortunately, in the most rapidly growing sector of world trade—the manufacture of machinery—our industries have been backward in research
  1638
  and development and the employment of graduate engineers and scientists, particularly at top management level.
  Professor Williams quotes figures showing that machinery as a proportion of world exports bas grown from 8 per cent. at the end of the nineteenth century to 25 per cent. today. We have maintained about the same proportion in our exports, but in view of this country's past dependence on declining industries—coal and cotton—this may not be enough. Also growing competition and the development of the manufacture of simple machines in the developing countries means that we must continuously keep technologically ahead.
  The Department of Scientific and Industrial Research through its Economic Committee, has produced two reports on industries and has drawn attention to their inadequacies. I do not accept the argument which is frequently used that these inquiries, the publicity which they receive and the discussion are harmful to those industries. I believe that reverse is the case, that these inquiries, reports and the discussions about them in the House and outside have stimullated industries to action they would not have taken if it had not been for the reports. But much more remains to be done by Government.
  I turn first of all to the research associations, about which so much has been said today. They vary, of course, in size and in the sort of work they do. In the case of some of them their work is much too much in the nature of trouble-shooting. I believe that they should be concerned largely with basic research, certainly on problems which are connected with their industries, but it should be objective research of a kind which no single firm is willing to undertake or which overlaps separate industries.
  To do this they need a stable income from the Government. As has already been said directors have to spend too much time shuffling around seeking finance, particularly towards the end of each quinquennium. The present level of Government contribution is pitifully small.
  I do not myself very much like the idea of earmarked grants, except perhaps for information and liaison work. This is extremely important. The whole

  1639
  problem of communicating the results of scientific research and development into industry is absolutely fundamental to the work of research associations. I am wondering if we make enough use of television for this purpose of introducing new ideas and getting industry to co-operate so that new inventions which have been scientifically developed are quickly taken up by industry. I believe that these research associations should be allowed to do sponsored research, but only on the condition that the director of the association feels that the proposal fits in with his general programme, in much the same way as a university professor will accept sponsored research if it fits in with the programme of his Department. I do not believe that the Government have begun to use the development contract idea at all. We have been told that there are two contracts let, and that a third is being considered. The problem will become of increasing urgency and importance if we get a disarmament agreement, with a consequent reduction in expenditure on armaments research and development, which may well take place in the near future, as we all hope. There is need to have plans for dealing with that situation well in advance. We can already see the sort of thing which will happen in the aircraft industry, and in the Atomic Energy Authority's production plants, where we have had a reduction of the requirements on research and development without any plans for the use of our resources, which have only recently been expanded.
  Since the war, many, and probably most, of our technological advances have been as overspill from defence, and this has particularly been so in the cases of electronics and in the miniaturisation of components, many of which are used in research. I saw myself at the Central Electricity Research Laboratories a fascinating example of this—a tiny potted transmitter transmitting the signals from strain gauges on a large turbine wheel to an aerial which was round the stator, and the scientists were collecting information in this way. I think the stress on the turbine wheel was over 7,000 G, which is considerably more than the astronauts were subjected to. This is an example of very useful
  1640
  research in a practical field of design of large turbine wheels, which is an overspill from missile research and development.
  Other fields of advance are atomic energy, chemistry, metallurgy and computers, all of which are largely overspill from defence research. It is essential to keep more and more of these men working on these schemes together, and one can understand that these teams must have some objective for their research. Defence research succeeds because it is aimed at producing hardware. What we need is organisational machinery for identifying objects for development and research contracts. I suggest that at the present time the machinery for identifying these objects is quite inadequate.
  What we need is a Technological Development Council, which would be comprised mostly of engineers with a good scientific background, and which should have the job of seeking out projects suitable for contract. As I understand it, the present arrangement is that projects are put up individually to the Treasury, and individually turned down. This leads to very great frustration among the many scientists and technologists responsible for vetting and putting up these projects. At least, this is what I am told by the people who are dealing with them.
  These projects will frequently be in very advanced fields which will require a very great deal of money. One of the features of modern science is that this equipment is very expensive. The physicists need larger and larger machines to smash smaller and smaller particles. Expensive machines are also needed in space research, for supersonic aircraft and on marine nuclear propulsion, on which we had an extremely interesting speech from the hon. and gallant Member for Harrow, East (Commander Courtney), and in the generation of electricity from heat and so on. These are all fields in which the costs are high and in which the resources required are much larger than those which can be afforded by any single company.
  As has been pointed out, advance can be held back by companies operating separately, particularly in the exchange of information. On the other hand, if the Government support a joint effort

  1641
  between companies, they are helping to create a monopoly. This puts us in considerable difficulty.
  I believe that in such cases the Government should often consider setting up a separate company in which they should share ownership and the proceeds of research. After all, the Government have accepted the principle of joint ownership with nationalised undertakings, and I do not see why they should not do so in this case. Where there has to be research and development—in machine tools, for example—I do not see why the Government should shut themselves out from acting in conjunction with private firms.
  I know that this conflicts with Tory prejudice, but it is in line with the Labour Party's policy for the participation of Government in industry. That prejudice is one of the reasons, I believe, which is holding the Government back from proceeding further with development projects along these lines. I should like to see much greater use made by the Government and the nationalised industries—which are such big buyers—of their power to enforce suppliers to undertake research development and improve the technical quality of their managements. I should like to think that this was originally my idea, for I mentioned it in a broadcast, but it was also mentioned in our last debate by the right hon. Member for Birmingham, Hall Green (Mr. Aubrey Jones).
  I was sorry that the right hon. Member was not here. We missed him in this debate very much. We were expecting fireworks from him. The hon. Member for Morecambe and Lonsdale (Mr. de Ferranti) did not provide the fireworks which we had expected after this publication which we have all read with such interest. The idea of using the Government and nationalised industries to enforce suppliers to become more scientific minded is one which the Government should consider.
  I believe that what is needed is that on the board of each nationalised industry the Government should ensure that there is a good, young applied scientist or scientific engineer. In the past, although similar appointees to these boards may have been good, they have not always been young. But nevertheless there is considerable difference in a nationalised industry where
  1642
  such appointments exist. The results in the industry itself and among its suppliers can be seen. I believe that the nationalised industries were slow to develop research and development departments, but we must remember that they took over very little. However, they are rapidly expanding now.
  I want now to come back to the problems of planning the general strategy for scientific advance and the machinery for its implementation and control. But I will first answer some of the rather silly attacks made on this side of the Committee by hon. Members opposite who should know better. No one on this side of the Committee advocates that all research grants and research should somehow be centralised in the Government. That would be nonsense. We have made our position clear before, and I will try to make it clearer.
  The point is that the Government provide a very large part of the money, and the Government really, in the end, centralise. The question is: where is the centralisation to be and how are the decisions to be taken? This is not to say that they are not taken now. We know that they are taken. At the moment they are taken by the Treasury without adequate advice and proper consideration.
  The question of the control of scientific advance is perhaps becoming almost as important as its stimulation. It is not only that we have seen the development of extraordinarily dangerous scientific ideas which have changed the face of the world but that we are likely to see more in the next few years. The advances now taking place in biology are getting to be as exciting as anything that has taken place in physics in the last 25 years.
  We are on the threshold of understanding the meaning of life itself. Although this may have some extraordinarily valuable results—such as in the understanding and cure of cancer—it also has implications in terms of the extension of human power which are revolutionary and could be frightening. I do not believe that I am exaggerating in saying this. I think that, well in advance, one must study and consider the implications of such advances so that

  1643
  one is prepared for them. We have had the development of new chemicals, not only medical drugs but chemicals for economic use in agriculture and industry. A chemist today needs to add only one carbon atom to an existing molecule and he does not know what he will produce. These things are being turned out in the laboratories at an enormous rate. It is important that we should have proper machinery for investigating and controlling new developments. I do not wish to be alarmist about this—they do not all get on the market—but there have been unfortunate incidents. There was one recently, and there have been many others in the last few years.
  Sir H. Legge-Bourke: I hope that the hon. Member is not claiming complete originality for this proposition. I think he would agree, as Chairman of the Parliamentary Scientific Committee, that the Minister for Science is fully aware of the likelihood of having to develop this matter of biological research.
  Mr. Albu: No, I regret to say I found on one occasion that one of the speakers was complacent and the other clearly said—I shall not mention their names, they are both Civil Servants—that there were not sufficient research resources for him to be able to study the result of materials to be used in industry.
  Let me come back to the question of centralisation. Few would want central administration of the detailed allocation of all scientific resources. But a large proportion comes from the Government at present, mainly in the defence field, but increasingly in the civil, and it is essential that the Minister should have a Department equipped with scientific advice to allocate the resources between the main divisions. The Treasury is not a suitable body for this job. Apparently the Government do not consider it a suitable body to plan the economy and they have set up another one. But it is not a suitable body to plan scientific expenditure.
  Under the present arrangement, finance officers of the various research bodies put up separate projects to the Treasury without the advice of scientists, which seems to me completely wrong. A body like D.S.I.R. ought to receive a block grant to do with as it
  1644
  liked on the same principle as the University Grants Committee and other research councils. The Minister should be directly responsible for all major scientific expenditure including that of the Atomic Energy Authority, the three research councils, the Nature Conservancy and the new technological development council which I have suggested. I believe that in addition there should be two new research councils. One for university fundamental research grants and one for the social sciences. We all welcome the small grant that the Government are about to make for the humanities on the recommendation of the British Association, and we are looking forward to hearing what they are to do to assist the social sciences. On that they have reserved their view.
  The Minister should be responsible for research and development and, as has been suggested by the right hon. Member for Birmingham, Hall Green, some sections of the Board of Trade as well. In view of the close connection between military and civil research, the Minister should at least chair a joint committee of his Department and the research departments of the Services and the Ministry of Aviation so as to ensure that defence does not get more than its fair share of research resources or waste what it does get, and to ensure that there is no unnecessary overlapping in the utilisation of resources whether in the defence departments or in the civil research establishments. The question is how should such a Department, a proper Ministry for Science—really a central advisory body for Government and science—be staffed? Obviously it cannot contain within it scientists capable of advising on all problems. The truth is that often one scientist does not know what another scientist is talking about. A distinguished scientist told me the other day that in order to find out what was happening in disciplines other than his own he read a popular weekly scientific paper. It is obviously not the scientist qua scientist, although I think there should be more scientists in the administrative class of the Civil Service. Equally, members of the department ought to be better equipped than the majority of our administrators are today.
  I am interested in some very good suggestions made by Sir Eric Ashby in

  1645
  the same number of Dœdalus to which I have referred. The sort of course he suggested would be designed to help the civil servant as an administrator, with whatever educational background, first, to understand the way in which scientists think and work and, secondly, to understand the relationship between craftsmen and technicians and scientists, the use of statistics and, in particular, of probability theory, and to understand how science is organised.
  These are extremely interesting suggestions. I do not know whether in staff colleges arrangements of this kind exist. He also suggests for more advanced people the holding of seminars for scientists and administrators not trained in science to discuss problems in which there is a scientific content so that they can get to know each other's minds. If the administrative staff needs strengthening, so does the machinery far obtaining the scientific advice from which the administrative choices have to be made.
  In the United States the President has a Special Assistant for Science, a Science Advisory Committee and a Federal Council for Science and Technology, but even those have come under criticism for having too small staffs to be able to fulfil their mission of planning, developing and encouraging new fields of scientific advance. How much weaker is our machinery. All the Government have is a scientific council which advises the Minister, who himself has practically no department of his own. This body is inadequately equipped to perform this important function. The members are part-time and meet once a month. There is no scientific core or permanent body. I suggest that there must be a core at least of scientists who work half-time or maybe full-time and technologists who work half-time or full-time and are members for three or four years. It should not be more than three or four years. I agree with what has been said about mobility. There should be a period of office.
  I know all the difficulties about this, difficulties about pensions and other things, but we must overcome the problem of mobility in the various places in which scientists are used. After all, this is just an administrative problem. In getting the best form of advice, it is essential to work out arrangements to
  1646
  ensure the mobility of scientists and technologists between universities and industry and in the Government service, As my hon. Friend the Member for Middlesbrough, West (Dr. Bray) said in an interesting speech, this applies in industry itself. "Neddy" needs a very strong scientific and technological component to study the relationship between the resources devoted to research and development and economic expansion.
  I am beginning to wonder whether Parliament itself should not play a larger part if Governments are to be stimulated to action and the country informed and educated about what is being done and what needs to be done. We have the Parliamentary and Scientific Committee, but our resources are extremely limited and none of us as members and officers of the Committee would claim more than that it makes a small contribution to this problem. I wonder if it would be constitutionally shocking to suggest that we should set up a permament Select Committee on the lines of the Select Committee on Estimates or the Select Committee on Nationalised Industries. which could continually examine scientific research and technological development so that the House could be better informed and the public better educated. It is because we on this side believe that the Government are so handicapped by their philosophy and background that they are incapable of making the changes that are needed that we shall vote against them tonight.
  In these matters, one is in difficulty. One does not want to be personal, but, after all, we have to remember that the Government's attitude towards this problem must be related to those whom they appoint and their eligibility for the appointments. When the Minister for Science was first appointed to his post, I believe that he was ringing his bell for the Tory Party—[Horn. MEMBERS! "No."] If he was not Minister for Science, he was Lord President of the Council and had such responsibility for science as at that time existed. The Minister —whom we all like and would wish to see back again in this Chamber—does little but make philosophical speeches about his job. They are very interesting speeches, but one cannot go on making philosophical speeches and not ultimately come to some practical end. That, we suggest, he has not done.

  1647
  We welcomed the appointment of the Parliamentary Secretary. The hon. Gentleman is amiability itself and has applied himself diligently to his task, but I am sure that it is not a task in which he was originally interested. He may have become interested, and may become more interested, but at the time of his appointment science was not something about which he felt passionately, and I suggest that it is probably only since his appointment that he has really become aware of its importance.
  The truth is that we feel that neither the Minister for Science nor the Parliamentary Secretary has any fire in his belly. They have no real and passionate feeling for science. They regard it as a rather dreary necessity which impinges on their arts background and general cultural background, and to which, somehow, they have to pay lip service because they are told to by the Cabinet. The Cabinet have passed the job to them, and they make the best show they can of it, but it is no good just making speeches on scientific philosophy, or acting as a sort of public relations officer for the research associations.
  That is not enough. We need a completely new attitude in the Government towards scientific advance and administration, and we shall not get it from the present set-up. The truth is that Ministers, including those who are supposed to be responsible far these very important subjects, do, in fact, to use a phrase used by one of their own back-bench critics, look back in languor on times past, not with enthusiasm to the future. We believe that it is time to have a change, and I think that the country outside is beginning to recognise that we shall not make the sort of scientific progress we need as long as this Government remain in office.
  9.33 p.m.
  The Financial Secretary to the Treasury (Sir Edward Boyle): With much that the hon. Member for Edmonton (Mr. Albu) said earlier I find myself in considerable agreement, but with regard to what he has just said I must, as one who has been a member of the Government and has served on many of the same Committees as my noble Friend the Minister for Science and my hon. Friend
  1648
  the Parliamentary Secretary, tell the hon. Gentleman that it is not true to say that either of them looks on science—as I think the phrase was—as a dreary necessity added to their arts background. That is not true, and it is not the way in which my noble Friend approaches this subject.
  I believe that science and technology, and their application, are fundamental for our economic growth and, if one wants to achieve a steady rate of economic growth over the years, one must have a society well attuned to innovation—a society that will accept technological change. To a large extent, I believe that it is a habit of mind, whether or not one recognises the need, not merely for dramatic innovations but for a steady rate of innovation over a very wide field. It is just as important in the field of building or, say, of traffic engineering as in that of technology.
  I think that this belief in innovation applies to commerce as well as to industry. Quite obviously, it is right at the present moment that we should be developing, for example, new techniques in retail trade, and all this belief in innovation is surely the more important when one recalls that the size of our working population has become, and is likely to remain, relatively stable. We must, therefore, believe in innovation and recognise the need for change all along the line.
  It is one of the Government's main jobs to facilitate this process of change. I shall point out one example to show how very much aware the Government are of this. Yesterday my right hon. Friend the Secretary of State for Scotland made an important statement about the pits.
  Mr. E. G. Willis: A disastrous one.
  Sir E. Boyle: The hon. Member says disastrous, but from the point of view of innovation and technical change it is important to recognise the element of opportunity involved in the large-scale shift of industry in any country. On the same day, my right hon. Friend the Minister of Labour—and this is a point I particularly wish the Committee to bear in mind—rightly announced, by way of a Written Answer, that he was increasing the training allowances for men aged 21 and over at Government

  1649
  training centres. That is exactly the way in which the Government should facilitate that process of change which is important all along the line.
  Another point which I wish to make clear at the outset is this. It is of the highest importance that a sufficient proportion of our scientific effort should be devoted to economic purposes. We must not have too big a proportion of our research effort devoted to what one might call non-economic purposes. I am the last person to say that over the whole economy there should be no room for social service expenditure where the economic criteria are not present. We must devote a sufficient proportion of our scientific effort to making our economy more efficient. A question we need all the time to ask ourselves is, "Are we using our scientists and technologists in a way which will promote economic growth?"
  I rather agree with the hon. Member for Edmonton about not drawing too sharp a line between pure and applied science. Except, possibly, for the theory of numbers and mathematical logic, I am not at all sure that an absolutely pure science is in existence which has no relation whatever to the real world. While we need all the time to push back the frontiers of knowledge, we also want to consider just where the applied research should be applied and to what parts of the economy it should be devoted.
  I must comment on universities because this is something in which, as a junior Treasury Minister, I bear some special responsibility to the House of Commons. The hon. and learned Member for Kettering (Mr. Mitchison) raised this matter earlier. It is important to remember that it is at the universities where most, though not all, of our scientists are trained and where many of them work. It is important to remember, too, that Government support for university education falls into three distinct parts; grants for capital, which includes not only building but also equipment, recurrent grants for overheads like salaries, and student awards.
  Regarding student awards, from next autumn these will be substantially increased and the increases extend not only to undergraduates but also to research students, to many of whom awards are
  1650
  made by D.S.I.R. I am not sure that the Committee realises just how greatly we are increasing the total of student awards. If one considers what was spent in 1957–58 and considers the cost to public funds of awards to students in university and comparable courses and to postgraduates, one finds that the figure that year was £23·2 million. By 1961 it had risen, to £33·2 million. This year the original estimate was £41·2 million but, in the light of the new rates that have recently been introduced, the figure will rise to £48 million. It will be £60 million by 1966–67 and this shows that there has been a very rapid increase in the value of student grants aver the period of a few years.
  Regarding recurrent grants, as the Committee knows, these are normally announced for five years ahead but that does not mean that they remain exactly at the figure's announced at the outset of the quinquennium, because when salaries, the biggest single item in this part of the bill, go up, the recurrent grant goes up, too. In 1956 the figure announced for last year, 1961–62, was £39 million, but in fact the Exchequer paid £49½ million. Last March, the recurrent grants for the new quinquennium were announced as £56 million rising to £76½ million. Already those figures are higher owing to the recent increase—I know that it was considered too modest an increase in many quarters —in staff salaries and, as the Committee knows, staff salaries are to be reviewed next year and the whole of university finance in two years' time.
  As the Committee knows very well, the Government, having regard to the other calls on our resources, did not feel able to make available the full measure of recurrent grant recommended by the University Grants Committee, but I want to emphasise—and this is the point of these remarks—that this decision did not in any way affect the capital programme on which the progress of science in the universities predominantly depends. As one who has taken part in a television programme on this subject, I am not at all sure that this has been fully realised. The main capital programme was announced in January, 1961. In 1956–57 capital grants to universities were £9 million. Last year they were £28 million and in 1966–67 they will be at least£40 million.
  Mr. Albu: Surely what is happening is that we are building laboratories and providing other resources but not the money to maintain them.
  Sir E. Boyle: I cannot go over the debates which we have already had on this subject. I merely point out that the decisions which the Government have taken over the recurrent grants are quite separate from decisions to do with the capital grants. It has been suggested by some commentators that the two absolutely go together, whereas the capital grants are in fact as announced in January, 1961. It is quite true that since the capital programme was announced building costs have risen, but I repeat what my right hon. Friend the Chief Secretary to the Treasury said in may—that sympathetic consideration will be given to further increases in capital grants.
  Mr. Mitchison: In view of all this, what is the Government's objection to revealing what the universities and the University Grants Committee ask for? We should be glad to hear it.
  Sir E. Boyle: I was coming to that in a moment, but I will answer the hon. and learned Member straight away.
  I believe that the relationship between the Government and the University Grants Committee and the way in which the Committee does its work make it necessary that the Committee should not be exposed to the sort of pressures which inevitably would arise if its advice were published. If one accepts this as a general proposition, it follows that the Government must preserve in confidence the advice which it receives. The Government accept the fullest responsibility for the ultimate decision and it is up to them to make clear when necessary that they have departed from the Committee's recommendations. All this will be considered again when we have the Report of the Robbins Committee. It will then be the duty of Parliament to take some very important decisions, but at the moment we have to keep to the existing position.
  Dr. Bray: Will the hon. Gentleman consult the University Grants Committee as to whether it wishes its advice to be published?
  Sir E. Boyle: No, Sir. I am sorry, but I have stated the Government's view of the only way in which the present system can work and I think that that is fully realised in many parts of the university world.
  I also wanted to say that, in addition to the components of expenditure on university education which I have mentioned, there is all the expenditure on new colleges of advanced technology, which cost the nation £50 million in 1956–57 and £100 million last year and will cost at least £160 million five years hence.
  I should like to give examples of what these figures mean. Firstly, they mean a considerable expansion of student numbers, two-thirds of which will be in science and technology. Secondly, they mean university building, predominantly for science, on a scale which I would invite hon. Members to consider after looking at the list in Appendix II of the University Vote. They show eighteen major science buildings in progress and twenty-one more scheduled for building. In the light of these figures, I just do not see how it can be said that the Government are not doing their share.
  There is another matter connected with the universities to which I should draw attention, that is, the research professorships announced by my right hon. Friend the Chief Secretary on 28th June. The President of the Royal Society proposed to the Chancellor of the Exchequer that the Society should establish, with Exchequer support and the approval of the universities, a number of professorships in British universities. As my right hon. Friend said, the Government have agreed with the Royal Society to provide further direct financial support to the Royal Society to enable it to sponsor the creation of five professorships of this kind. It is hoped that the first appointments will be made early in 1963. I believe that they will be of considerable value in the context of the matters which we have been discussing today.
  We should not forget the research grants made by the D.S.I.R. to the universities which cover a large number of small grants and also a certain amount of very expensive equipment of considerable importance. The future of D.S.I.R. expenditure is at present under

  1653
  consideration so I cannot give precise details to the Committee, but I can say that D.S.I.R. grants to the universities have been increasing and, whatever final figures are agreed on, we shall undoubtedly be doubling the rate of expenditure on this kind of grant within the course of the next few years.
  I turn now to the subject of teachers. The hon. Member for Cardiff, West (Mr. G. Thomas) was courteous enough to inform me that he could not stay to the end of the debate, but I wish to comment on some of the points which he raised. I will first give the Committee some figures.
  The number of A-level mathematics and science passes increased between 1960 and 1961 as follows: for mathematics, the total rose from 26,800 to 29,700, and for science from 48,600 to 55,000. The number of mathematics and science graduate teachers in our schools rose in total from 17,800 in 1959 to just over 20,000 in 1961. So the trend is favourable.
  Mr. James Boyden: Can the hon. Gentleman say how many lecturers in mathematics and physics there are in the women's training colleges?
  Sir E. Boyle: As the hon. Gentleman will understand, I cannot answer that question without notice, but I will try to obtain the information and send it to him as soon as possible. The hon. Member for Cardiff, West did say something about which I wished to comment. He drew attention to the fact that a higher percentage of teachers were now having to go to the primary schools because of the bulge. That is true, but one should remember two factors in this connection. First, as we all agree, the real foundation for the training of scientists, technologists, technicians and craftsmen in this country must be first-class teaching in the primary schools. Let us never forget that the priority on which we all agree in this Committee is bringing down the size of primary school classes. Second, the percentage to which the hon. Gentleman refers is a percentage of a larger teacher training population. When I was at the Ministry of Education, the capacity of the teacher training colleges was about 24,000. We have already had one
  1654
  expansion programme providing 16,000 more places and there are to be two further expansion programmes providing 4,000 and 8,000 more places. The figures which the hon. Gentleman used must be related to a higher total teacher population.
  The hon. and learned Member for Kettering referred to the Report of the Ad Hoc Committee of the Royal Society on biological research. I entirely agree with all that has been said about the importance of biology. In my view, some commentators in our society today do no service by laying so much emphasis proportionately on physics. I quite agree with what the hon. and learned Member said about the very exciting vistas in biology which seem to be opened up. My noble Friend has received a copy of this very important Report, and he is seeking advice on it from the Advisory Council on Scientific Policy. Also, the research councils which support biological research in various ways are giving the Report their detailed consideration.
  The hon. and learned Gentleman asked a question about the interchange of scientific and administrative staff. Scientific staff are already employed to a considerable extent on administrative duties particularly in the research establishments themselves but also at headquarters where they are primarily concerned with the control of scientific progress and the deployment of scientific staff. I can tell the hon. and learned Gentleman that the Government are very well aware of the Zuckerman Committee's recommendation that suitable scientific staff should be transferred more widely to administrative work. The Government intend to do what they can to ensure that more opportunities of administrative work are available to scientists.
  My hon. Friend the Member for Abingdon (Ms. Neave) asked one or two questions about Euratom. He asked on what basis the Government would negotiate for private industry. My hon. Friend the Parliamentary Secretary tells me that we are already consulting with industry through the Board of Trade about the Euratom negotiations. On his second point, that other countries have less control and more farming out of projects to private industry than we

  1655
  have, I am told again that the Euratom statute has no provisions which determine the nature of the organisation of nuclear industry within each country. Some of its provisions are in fact aimed at ensuring fair competition between undertakings within the Common Market. If we are to join Euratom it will be open to any undertaking within the Common Market to compete for the supply of equipment or services to the Euratom Commission for the Commission's own projects.
  The hon. Member for Chester-le-Street (Mr. Pentland) and the hon. Member for Consett (Mr. Stones) asked about the fuel and power industry. The hon. Member for Chester-le-Street—I do not see him in his place now—rather surprised me by bringing up the Paley Report again. I do not think that we have heard about that in this Committee for quite a Parliament or so, but I can say to him that the Paley Report has been rather, as they say, overtaken by events because in the last 10 years exploration has added on an average 2,000 million tons of oil a year to the proven reserves of the Middle East alone.
  The hon. Member asked also about research for the utilisation of fuel. If the hon. Member looks at the Report of the Department of Scientific and Industrial Research he will find that the British Coal Utilisation Research Association has an annual total income of very nearly £500,000. It is one of the best off and most prosperous of the research associations. As regards safety and health in mines and quarries, I can only refer the hon. Gentleman to the fairly complete answer which my right hon. Friend the Minister of Power gave on 7th May on this subject.
  Before I come to my concluding passage there is one announcement that I want to make to the Committee this evening. A grant of about £250,000 is being offered to the University of London by the D.S.I.R. to provide a low power nuclear reactor for research and training. The reactor, which is a 100 kilowatt Consort, made by the General Electric Company, Limited, will be operated by the Imperial College on behalf of the university and is to be built on the Imperial College field station at Silwood
  1656
  Park, near Virginia Water, Surrey. While it is intended primarily for the London University it will be available for use by other research organisations in the London area. It is not very often that the Financial Secretary, in winding up a debate, announces a grant to the extent of even £250,000. More often he is in the position of resisting expenditure. I hope that the hon. and learned Gentleman will be thankful for what, I think, are quite reasonable mercies in the announcement that I have just made.
  I want, in conclusion, to say a word on the point on which the hon. Member for Edmonton spent a good deal of time, namely, organisation and the position of the Government in science. No one will claim that the present administrative organisation for promoting Government-sponsored civil science is perfect.
  First, the pace of scientific development during the first half of this century has been very rapid and is accelerating. The Government's concern with science, which at the start of the century was relatively limited, has grown at a corresponding rate. In terms of what one might call the normal perspective of administrative history, this concern has developed almost overnight. It surely is not surprising that the machinery of Government, in so far as it has to deal with civil science, has had something of an ad hoc air. It would be remarkable if it were otherwise. One should consider this from the point of view of the scientists.
  The other feature of our existing system which can be pleaded in its favour is that it gives the scientist a very considerable measure of freedom. I think that before we condemn a system which embraces as many different types of agency as the research councils, the D.S.I.R., the Atomic Energy Authority and all the complex of organisations concerned with space, we should reflect on the benefits which the whole spirit of scientific inquiry and technological development has derived from not being subordinated to the full rigours of normal Departmental control.
  I was interested in the note which I saw of the speech of the hon. Member for Sheffield, Hallam, (Mr. J.H. Osborn). Let us be careful about, as it were, moving closer to the Russian

  1657
  system, just as they are beginning to have doubts about their own organisation in the past. But I entirely agree with the emphasis which the hon. Member always rightly lays on the need for sufficient expertise. Of course, for the inhibited growth we have paid a price in the sense that we have reached a point when the increasing demands which science is making on the financial and economic resources of the community are so formidable that we must consider whether perhaps some further rationalisation of our administrative arrangements is desirable. The result may be a pattern of organisation in which our responsibilities may have to be rather more clearly defined, functions more systematically demarcated and effort, to some extent, redistributed.
  I shall not attempt this evening to try to predict the outcome of the review which we have undertaken for this purpose, but I assure hon. Members opposite as they approach a Division on this subject that what I said at the beginning about innovation was sincerely meant. The Government realise that they must keep an open mind regarding innovation in their own administrative arrangements just as much as there is a need for innovation in science and technology in the community as a whole.
  Mr. A. G. Bottomley Mr. A. G. Bottomley (Middlesbrough. East) rose—
  Sir E. Boyle: I must sit down at 9.58.
  Mr. Bottomley: Will the hon. Gentleman explain why the Minister for Science—
  Sir E. Boyle: I do not want to be discourteous to the right hon. Gentleman, but I am coming literally to my last sentence, and it is time that I did so.
  Remembering the advantages of the system which we have had but at the same time realising we must prove adaptable and must recognise the need for greater expertise in the present, I ask this side of the Committee to defend the Government's record in the important field which we have been discussing.
  Mr. Mitchison: Since we still do not know what the Minister for Science does and have our own ideas as to what he should do, I beg to move, That a sum, not exceeding £72,000, be granted for the said Service.
  Question put, That a sum, not exceeding £72,000, be granted for the said Service:—
  The Committee divided: Ayes 138, Noes 190.

  Division No. 246.]

  AYES

  [9.59 p.m.

  Ainsley, William

  Ede, Rt. Hon. C.

  Jay, Rt. Hon. Douglas

  Albu, Austen

  Edelman, Maurice

  Jenkins, Roy (Stechford)

  Allaun, Frank (Salford, E.)

  Edwards, Robert (Bilaton)

  Johnson, Carol (Lewisham, S.)

  Baird, John

  Edwards, Walter (Stepney)

  Kenyon, Clifford

  Bence, Cyril

  Evans, Albert

  Key, Rt. Hon. C. W.

  Benson, Sir George

  Finch, Harold

  King, Dr. Horace

  Blackburn, F.

  Fitch, Alan

  Lawson, George

  Blyton, William

  Foot, Dingle (Ipswich)

  Ledger, Ron

  Boardman, H.

  Foot, Michael (Ebbw Vale)

  Lee, Frederick (Newton)

  Bottomley, Rt. Hon. A. G.

  Gaitskell, Rt. Hon. Hugh

  Lee, Miss Jennie (Cannock)

  Bowden, Rt. Hn. H. W. (Lelcs. S.W.)

  Galpern, Sir Myer

  Lever, Harold (Cheetham)

  Bowen, Roderic (Cardigan)

  Ginsburg, David

  Lewis, Arthur (West Ham, N.)

  Bowles, Frank

  Grey, Charles

  Lubbock, Eric

  Boyden, James

  Griffiths, W. (Exchange)

  Mabon, D. J. Dickson

  Braddock, Mrs. E. M.

  Grimond, Rt. Hon. J.

  MacColl, James

  Bray, Dr. Jeremy

  Gunter, Ray

  McKay, John (Wallsend)

  Brockway, A. Fenner

  Hamilton, William (West Fife)

  Manuel, Archie

  Brown, Thomas (Ince)

  Hannan, William

  Marsh, Richard

  Butler, Herbert (Hackney, C.)

  Harper, Joseph

  Mason, Roy

  Castle, Mrs. Barbara

  Hayman, F. H.

  Mendelson, J. J.

  Cliffe, Michael

  Healey, Denis

  Milne, Edward

  Corbet, Mrs. Freda

  Henderson, Rt. Hn. Arthur(Rwly Regis)

  Mitchison, G. R.

  Crosland, Anthony

  Herbison, Miss Margaret

  Moody, A. S.

  Crossman, R. H. S.

  Hilton, A. V.

  Moyle, Arthur

  Cullen, Mrs. Alice

  Holman, Percy

  Mulley, Frederick

  Dalyell, Tam

  Hoosen, H. E.

  Noel-Baker, Francis (Swindon)

  Davies, Ifor (Gower)

  Houghton, Douglas

  Noel-Baker, Rt.Hn. Philip (Derby, S.)

  Delargy, Hugh

  Hughes, Emrys (S. Ayrshire)

  Oram, A. E.

  Diamond, John

  Hunter, A. E.

  Owen, Will

  Dodds, Norman

  Hynd, John (Attercliffe)

  Padley, W. E.

  Donnelly, Desmond

  Irving, Sydney (Dartford)

  Pannell, Charles (Leeds, W.)

  Dugdale, Rt. Hon. John

  Janner, Sir Barnett

  Parkin, B. T.

  Pavitt, Laurence

  Royle, Charles (Salford, West)

  Tomney, Frank

  Peart, Frederick

  Skeffington, Arthur

  Wade, Donald

  Pentland, Norman

  Slater, Mrs. Harriet (Stoke, N.)

  Walnwright, Edwin

  Plummer, Sir Leslie

  Slater, Joseph (Sedgefield)

  Weitzman, David

  Prentice, R. E.

  Small, William

  Wells, William (Walsall, N.)

  Proctor, W. T.

  Sorensen, R. W.

  White, Mrs. Eirene

  Randall, Harry

  Soskice, Rt. Hon. Sir Frank

  Wilkins, W. A.

  Redhead, E. C.

  Spriggs, Leslie

  Willey, Frederick

  Reid, William

  Stewart, Michael (Fulham)

  Williams, W. R. (Openshaw)

  Rhodes, H.

  Stonehouse, John

  Williams, W. T. (Warrington)

  Roberts, Goronwy (Caernarvon)

  Stones, William

  Willis, E. G. (Edinburgh, E.)

  Robertson, John (Paisley)

  Strachey, Rt. Hon. John

  Wilson, Rt. Hon. Harald (Huyton)

  Robinson, Kenneth (St. Pancras, N.)

  Swingler, Stephen

  Rodgers, W. T. (Stockton)

  Taylor, Bernard (Mansfield)

  TELLERS FOR THE AYES:

  Ross, William

  Thornton, Ernest

  Mr. Charles A. Howell and

  Mr. McCann.

  NOES

  Allan, Robert (Paddington, S.)

  Glyn, Dr. Alan (Clapham)

  Page, Graham (Crosby)

  Allason, James

  Grant-Ferris, Wg. Cdr. R.

  Page, John (Harrow, West)

  Arbuthnot, John

  Green, Alan

  Pannell, Norman (Kirkdale)

  Ashton, Sir Hubert

  Hall, John (Wycombe)

  Pearson, Frank (Clitheroe)

  Balniel, Lord

  Hamilton, Michael (Wellingborough)

  Peel, John

  Barber, Anthony

  Harris, Reader (Heston)

  Percival, Ian

  Batsford, Brian

  Harrison, Brian (Maldon)

  Pickthorn, Sir Kenneth

  Baxter, Sir Beverley (Southgate)

  Harrison, Col. Sir Harwood (Eye)

  Pike, Miss Mervyn

  Berkeley, Humphry

  Harvey, John (Walthamstow, E.)

  Pitman, Sir James

  Biffen, John

  Harvie Anderson, Miss

  Pitt, Miss Edith

  Biggs-Davison, John

  Henderson, John (Cathcart)

  Pott, Percivall

  Bingham, R. M.

  Hicks Beach, Mai. W.

  Price, David (Eastleigh)

  Birch, Rt. Hon. Nigel

  Hiley, Joseph

  Proudfoot, Wilfred

  Bishop, F. P.

  Hill, Dr. Rt. Hon. Charles (Luton)

  Pym, Francis

  Black, Sir Cyril

  Hill, Mrs. Eveline (Wythenshawe)

  Quennell, Miss J. M.

  Bossom, Clive

  Hirst, Geoffrey

  Redmayne, Rt. Hon. Martin

  Bourne-Arton, A.

  Holland, Philip

  Renton, David

  Box, Donald

  Hopkins, Alan

  Ridley, Hon. Nicholas

  Boyd-Carpenter, Rt. Hon. John

  Hornby R. P.

  Ridsdale, Jullan

  Boyle, Sir Edward

  Hornsby-Smith, Rt. Hon. Dame P.

  Rippon, Geoffrey

  Braine, Bernard

  Howard, Hon. G. R. (St. Ives)

  Rodgers, John (Sevenoaks)

  Brewis, John

  Hughes Hallett, Vice-Admiral John

  Roots, William

  Brown, Alan (Tottenham)

  Hughes-Young, Michael

  Ropner, Col. Sir Leonard

  Browne, Percy (Torrington)

  Iremonger, T. L.

  Sharples, Richard

  Buck, Antony

  Irvine, Bryant Godman (Rye)

  Shaw, M.

  Bullus, Wing Commander Eric

  James, David

  Shepherd William

  Burden. F, A.

  Jennings, J. C.

  Skeet, T. H. H.

  Campbell Sir David (Belfast S.)

  Smith Dudley (Br'ntf'd & Chiswick)

  Campbell, Gordon (Moray & Nairn)

  Johnson, Dr. Donald (Carlisle)

  Smithers, Peter

  Carr, Compton (Barons Court)

  Johnson, Eric (Blackley)

  Smyth, Rt. Hon. Brig. Sir John

  Channon, H. P. G.

  Johnson Smith, Geoffrey

  Spearman, Sir Alexander

  Chichester-Clark, R.

  Jones, Rt. Hn. Aubrey (Hall Green)

  Speir, Rupert

  Clark, Henry (Antrim, N.)

  Kerans, Cdr. J. S.

  Stevens, Geoffrey

  Clark, William (Nottingham, S.)

  Kirk, Peter

  Storey, Sir Samuel

  Cleaver, Leonard

  Legge-Bourke, Sir Harry

  Studholme, Sir Henry

  Collard, Richard

  Lewis, Kenneth (Rutland)

  Summers, Sir Spencer

  Cooke, Robert

  Lindsay, Sir Martin

  Tapsell, Peter

  Coope, A. E.

  Linstead, Sir Hugh

  Taylor, Frank (M'ch'st'r, Moss Side)

  Costain, A. P.

  Litchfield, Capt. John

  Teeling, Sir William

  Couison, Michael

  Longden, Gilbert

  Temple, John M.

  Courtney, Cdr. Anthony

  Loveys, Walter H.

  Thatcher, Mrs. Margaret

  Craddock, Sir Beresford

  McLaren, Martin

  Thompson, Richard (Croydon, S.)

  Crowder, F. P.

  McLaughlin, Mrs. Patricia

  Thornton- Kemsley, Sir Colin

  Curran, Charles

  Maclean, Sir Fitzroy(Bute& N. Ayrs.)

  Touche, Rt. Hon. Sir Gordon

  Dalkeith, Earl of

  Macleod, Rt. Hn. <ob/>ain (Enfield, W.)

  Turner, Colin

  d'Avigdor-Goldsmid, Sir Henry

  Macpherson, Niall (Dumfries)

  Turton, Rt- Hon. R. H.

  Digby, Simon Wingfield

  Maitland, Sir John

  Tweedsmuir, Lady

  Doughty, Charles

  Markham, Major Sir Frank

  van Straubenzee, W. R.

  Drayson, G. B.

  Marshall, Douglas

  Vaughan-Morgan, Rt. Hon, Sir John

  Elliot Capt. Walter (Carshaltont)

  Marten, Neil

  Vickers, Miss Joan

  Emery, Peter

  Mathew, Robert (Honiton)

  Walder, David

  Emmet, Hon. Mrs. Evelyn

  Matthews, Gordon (Meriden)

  Walker-Smith, Rt. Hon. Sir Derek

  Mawby, Ray

  Wall, Patrick

  Errington, Sir Eric

  Maxwell-Hyslop, R. J.

  Whitelaw, William

  Farey-Jones, F. W.

  Maydon, Lt.-Cmdr. S. L. C.

  Williams, Dudley (Exeter)

  Farr, John

  Mills, Stratton

  Wise, A. R.

  Fisher, Nigel

  Miscampbell, Norman

  Wolrige-Gordon, Patrick

  Fletcher-Cooke, Charles

  Montgomery, Fergus

  Wood, Rt. Hon. Richard

  Foster, John

  More, Jasper (Ludlow)

  Woodhouse, C. M.

  Fraser, Hn. Hugh (Stafford & Stone)

  Morgan, William

  Woollam, John

  Fraser, Ian (Plymouth, Sutton)

  Neave, Airey

  Worsley, Marcus

  Freeth, Denzil

  Noble, Michael

  Gibson-Watt, David

  Nugent, Rt. Hon. Sir Richard

  TELLERS FOR THE NOES:

  Gilmour, Sir John

  Orr-Ewing, C. Ian

  Mr. Finlay and Mr..J.E.B.Hill.

  Glover, Sir Douglas

  Osborn, John (Hallam)

  Original Question again proposed.
  Mr. Ray Mawby Mr. Ray Mawby (Totnes)
  rose—
  It being after Ten o'clock, The CHAIRMAN left the Chair to report Progress and ask leave to sit again.
  Committee report Progress; to sit again Tomorrow.

  BUSINESS OF THE HOUSE
  Proceedings on the House of Commons Members' Fund Bill exempted, at this day's Sitting, from the provisions of Standing Order No. 1 (Sittings of the House)—[Mr. lain Macleod.]
  HOUSE OF COMMONS MEMBERS' FUND BILL
  Considered in Committee; reported, without Amendment; read the Third time and passed.

  CINEMATOGRAPH FILMS (LEVY)
  10.11 p.m.
  The Parliamentary Secretary to the Board of Trade (Mr. Niall Macpherson): I beg to move,
  That the Cinematograph Films (Distribution of Levy) (Amendment No. 2) Regulations, 1962, a draft of which was laid before this House on 26th June, be approved.
  The Cinematograph Films Act, 1957, provides that there should be a levy on cinema exhibitors and that the proceeds should be distributed to makers of British films by the British Film Fund Agency, which in turn was established under the Act. The makers of various classes of films get payments from the Fund in varying proportions to what they earn from their films. Under the present arrangements, first-feature films get a direct proportion of their normal earnings, while short films other than newsreels have their earnings multiplied by two and a half times before the same proportion is applied. At present, the proportion is about 44 per cent. of their earnings. Low-cost films, with which the Regulations deal—that is, long films the labour costs of which do not exceed £20,000—have their earnings multiplied by two up to the point where those earnings reach £15,000 or the film's labour costs, whichever is the lower.
  1662
  There is a shortage both of first-feature films and of second-feature or low-cost films. The industry considers that second-feature films not only help to attract audiences to the cinema if they are good, but also, in the process of their production, provide opportunities to train the younger generation of actors, directors and all the other skilled personnel who help to create films.
  For these reasons, after consultation with the Cinematograph Films Council, we propose this change in the Regulations to encourage further the making of low-cost films by increasing the Fund's scale of payments on such films by onequarter—that is, by providing that their normal earnings shall be multiplied by two and a half times for the purpose of calculating their entitlement from the Fund instead of by two as hitherto. The existing upper limits of low-cost films will be retained.
  The House will want to know where the initiative for making the change originated. It was the film producers themselves who proposed it—that is to say, the people to whom the proceeds of the Fund are paid, including the producers of first-feature films. It is the producers of first-feature films who are likely to receive less from the Fund to the extent that the producers of low-cost films will get more as a result of the Regulations. I should add that no increase is proposed in the amount of the levy raised from the exhibitors. The proposed arrangements will apply in the current year, which ends on 13th October, 1962.
  I hope that with this brief explanation these Regulations will commend themselves to the House as they have, by and large, to the industry, including the Cinematograph Films Council.
  10.15 p.m.
  Mr. Harold Lever: I make a very brief intervention, I hasten to reassure any hon. Member who has trepidations or a memory which goes back some years on this subject. I desire only to express my disappointment that by staying for the Motion on these interesting Regulations to be proposed I have not learned anything about the progress of the scheme for assisting British film production. No doubt after my hon. Friend the Member for Flint, East (Mrs. White)

  1663
  has spoken I shall be more enlightened, but it seemed to me that the gist of the precise speech from the Government Front Bench was simply that there is a scheme, which we all know is in force, which creates a pool of money for producers, and the beneficiaries have avoided a public squabble as to how the benefits should be distributed among them, and that this is a matter which the Minister thinks is cause for congratulation and reassurance, and we ought, therefore, to pass the Regulations.
  I feel that we ought to know a little more from the Minister about how the scheme in general is progressing. It is all very well telling us that the money under the scheme will be divided somewhat differently—
  Mr. Speaker: I interrupt the hon. Gentleman to point out to him that there would be difficulties about order in dealing with the general working of the levy on this issue.
  Mr. Lever: I was not hoping, Mr. Speaker; that we should have a general dissertation on the effectiveness of the scheme, but I should have thought that it would not have been entirely out of order to say, relevantly to the question of how the fund should be distributed, that the fund as a whole is working well and this has encouraged the Minister to accept the recommendations of the industry and split the benefits in a slightly different way in the hope that they will produce an even greater fillip to the success which the Government have notoriously enjoyed in supporting the British film producing industry. If we are asked to reconsider the arrangements hitherto in force governing the distribution of the proportions of the total, may we not know how the previous disposition works? If it worked well, we might feel inclined to resist the benevolent despotism of the Minister and not be so ready to yield to the democratic processes of the film production industry which have arrived at a result which has found embodiment in the Regulations.
  Therefore, without inviting the Minister to transgress any rule of order, I should have hoped that the House might have had a sentence—no more—to indicate that the Minister was satisfied or
  1664
  dissatisfied with the working of the scheme so far or with its success as a plan. I am particularly interested because when the scheme was introduced and subsequently I expressed some scepticism as to whether it would achieve the result intended. I have to decide whether I should vote in favour of a rearrangement of the existing scheme for distributing the money, and for this purpose I would hope that, subject to your guidance, Mr. Speaker, upon which we all rely, the Minister would vouchsafe a little information about his satisfaction or dissatisfaction with the experience the industry has had under the Government's policy to encourage British film production.
  10.19 p.m.
  Mrs. Eirene White: The Regulations are relatively short and, I think, relatively uncontroversial. There are some very much more controversial matters concerning the collection and distribution of the levy which may well come before the House before very long. For example, some persons are proposing that there should be a ceiling placed on the maximum amount paid in levy to the producer of any particular film. Others are pressing that there should be higher exemption limits for cinemas from which the levy is collected, and there are various other matters of considerable controversy within the industry which we may have to consider in the fairly near future.
  These Regulations are very narrow, concerning, as the Parliamentary Secretary said, only one category of films—the low-cost films—and it has been agreed within the industry that this redistribution of income should take place. As a Socialist, I am all in favour of the redistribution of income, and if this is to produce better quality second feature films, we should all be happy. If, on the other hand, the quality of second-feature films remains as it has been in all too many films in the past, it would be a very disappointing result. Every one of us has had the experience of going to a cinema to see a feature film and of having to sit through a supporting programme which was far below the quality which we had every right to expect.
  On the other hand, I would warmly support my hon. Friend the Member

  1665
  for Manchester, Cheetham (Mr. H. Lever) in suggesting that the Parliamentary Secretary should tell us more about the present state of the Cinematograph Films Fund. Although it is a redistribution, this is, nevertheless, the fund put up to improve second-feature films. If the first-feature producers, who, after all, are the more important, were to find that because of the Fund itself not being, in a healthy state, their returns were to diminish, that might be rather serious, and we might have to reconsider the priorities. It is only right that the Parliamentary Secretary should inform the House what is the present state of this Fund, which we are now dividing out.
  At the beginning of the year, I think I am right in saying, there had been some drop in receipts. I think we should be told whether or not that position has improved, and what the estimate is of the amount of change in the Fund which will be received by the respective groups of producers. I think that, most certainly, we should be informed about that.
  My hon. Friend asked whether, on the whole, the Minister is satisfied with the working of the Fund, and I think I am correct in saying that, on the average, the producers get about one-third of their total income by means of the levy, about one-third from receipts from the home market and a further one-third from receipts from overseas. It is, therefore, clear that the amount of the Fund is a matter of the greatest possible concern to the film producers, as they depend upon it, on the average, for about one-third of their income. Before we dispose of the Regulations, it is only right that the House should be told just what is the present state of the Fund and what its future prospects appear to be.
  10.23 p.m.
  Mr. N. Macpherson: The hon. Member for Manchester, Cheetham (Mr. H. Lever) invited me to pronounce "a
  1666
  sentence, no more". I have already done that, but I think that the House would like a little more information than I have given so far.
  I have been asked what is the amount that has been realised by the Fund in the last period. In the last period, to October, 1961, the gross yield of the levy was roughly £4 million. It is true that the total amount collected has been falling, as indeed cinema admissions have been falling over a period of years, but this £4 million was more than it was expected to be When the rate was fixed in July, 1960, when it was expected to yield £3·7 million. When it was originally fixed, it was fixed with the object of raising about £3¾million, so that it is not too bad, from the point of view of what was originally anticipated.
  I do not know what further information the House would like to have about this, but hon. Member might be interested to know what were the shares of the Fund going to the various classes of films. In respect of the last levy year, which ended in October, 1961, the interim payments from the Fund to date, although some supplementary claims have still to be settled, have been £3·7 million, of which £2·8 million was for high-cost films, £460,000 for low-cost films, £320,000 for short films and £125,000 for newsreels.
  The hon. Lady the Member for Flint, East (Mrs. White) asked whether the Regulations will tend to produce a better quality of second feature films. To the extent that it is likely to make them more profitable, it should do that, but no one can say that it will. Certainly, that is one of the intentions of the Regulations, and I hope that, with this brief explanation, the House will agree to them.
  Question put and agreed to.
  Resolved,
  That the Cinematograph Films (Distribution of Levy) (Amendment No. 2) Regulations, 1962, a draft of which was laid before this House on 26th June, be approved.

  COMMONWEALTH PREFERENCE (WEST CAMEROON)
  10.25 p.m.
  The Minister of State, Board of Trade (Sir Keith Joseph): I beg to move,
  That the Commonwealth Preference (West Cameroon) Order 1962, a draft of which was laid before this House on 26th June, be approved.
  Before I begin to justify the laying of this Statutory Instrument, I should make sure that we are all up to date with the latest changes in name in this part of West Africa. The House will remember that, after the plebiscite early in 1961, the former Southern Cameroons, which Her Majesty's Government were administering under United Nations agreement, decided to join the then Republic of Cameroon instead of remaining a permanent part of Nigeria. The territory became part of the Republic in October, 1961, and thus left the Commonwealth.
  Subsequently, the Republic was transformed into a federation, consisting of two parts—the Federated State of West Cameroon, with which this Order deals, and which is the former Southern Cameroons, and the Federated State of East Cameroon, which is the former Republic of Cameroon. The two federated States together are now known as the Federal Republic of Cameroon.
  Although, by its own option, the former Southern Cameroons, now West Cameroon, has ceased to belong to the Commonwealth, Her Majesty's Government, with the approval of the House, thought it necessary to give the people concerned time to adjust their trading conditions to the new situation and, therefore, it was arranged, under Section 10 of the Finance Act, 1961, that the former Southern Cameroons should remain within the Commonwealth preference area until 1st October, 1962. We proposed this successfully to the House, because, of course, this is an underdeveloped territory for Which the Government have had responsibility for a number of years.
  We had been the largest market for its major produce and had encouraged its people to produce goods for which we were the main market. Moreover, considerable British interests were invested in the territory and we also have a
  1668
  reasonable export trade to it. The main produce of the territory consists of bananas—of which we take by far the larger share, West Cameroon bananas accounting for one-fifth of the total banana consumption of the United Kingdom—cocoa, coffee, hardwoods, rubber and palm oil. We therefore took this decision for all those reasons.
  But it so happens that because of the negotiations now going on in Brussels and, in particular, because of the discussions now in progress about the treatment by any extended Common Market of tropical produce, together with the discussions about the relationship between the associated territories of the present members of the Community and the associated territories of any new member that may adhere, it has become by no means so clear as to what shall be the future relations of West Cameroon. It is therefore proposed, by the draft Order, to maintain the Commonwealth preferences enjoyed by this area for a further period.
  If the House approves this draft Order it will be, I hope, because it agrees with the Government that it is only sensible to maintain the present position until we see the results of the Brussels negotiations.
  There have been several precedents for maintaining Commonwealth preference for areas which have become independent and have left the Commonwealth, like Burma, the Republic of Ireland, and South Africa. But I must tell the House frankly that there is no precedent for maintaining Commonwealth preference for pant only of an independent non-Commonwealth country, and that is what we seek to do by this Statutory Instrument.
  There are certain difficulties. Her Majesty's Customs are naturally anxious to be sure that the Commonwealth preference is only available to West Cameroon and not to East Cameroon bananas, and to the other produce that comes from the East Cameroon. We discussed this problem with M. Betayene, the Minister for Foreign Affairs of the Federal Republic who was in this country at the end of June, and he assured us that he did not see any serious problem here. It is evidently illegal to move bananas, which are the main export crop with which we are

  1669
  dealing, from West Cameroon across the border into East Cameroon. This could happen if the relative prices were different, because it would be a temptation to do so, but I understand that East Cameroon bananas already find a very handsome and better price market in France so there is no incentive for a move across the border into West Cameroon to take advantage of the preference that we propose to maintain.
  On balance, therefore, we think it right to extend the period during which this preference is maintained for the former Southern Cameroons. Our present intention is that the period shall be extended to 30th September, 1963, and not beyond this date, but we propose, and have made it clear to our friends in West Cameroon, that we shall be reviewing the whole position not later than April next year, by which time we shall know far more clearly our position in
  1670
  relation to the Common Market. I hope that with that explanation the House will approve this draft Order.
  Mr. Douglas Jay: Do I understand correctly that the territory has changed its name, but that what we are doing is to continue the same preference for the same area as it had before?
  Sir K. Joseph Sir K. Joseph indicated assent.
  Mr. Jay: If that is so, and it is really practical to make this division, I see no objection.
  Question put and agreed to.
  Resolved,
  t the Commonwealth Preference (West Cameroon) Order 1962, a draft of which was laid before this House on 26th June, be approved

  DICAPPED PERSON (TRANPORT)
  Motion made, and Question proposed,That this House do now adjourn.—[Mr. J. E. B. Hill.]
  10.32 p.m.
  Mr. Fergus Montgomery: I will not detain the House for very long. I am very grateful to have the opportunity of this Adjournment debate on Gordon Hall, who is a constituent of mine. I have already brought this case to the attention of the Ministry of Heath, and indeed I sent the Ministry all the details of this problem. I regret to say that I did not receive a reply from the Ministry until the beginning of this week. I hope that I shall be forgiven if I seem cynical, but it is rather strange that, I having announced that I was having an Adjournment debate on this subject, the reply miraculously appeared. I hope that my hon. Friend will agree that eight weeks in which to reply is a very long time, and to the people who have been waiting for this reply I suppose every day seemed like a year, so the eight weeks which they waited must have seemed like an eternity.
  This is a rather tragic case, and by this Adjournment debate I have the opportunity of ventilating it to try to ensure some justice at any rate for this boy and his parents. I say "this boy" but he is in fact a young man because he is now 20. Since he was seven he has suffered from muscular dystrophy, and his parents, who have always been thrifty, hard-working people, have always looked after him. He did well at school. When he left school he got a job in an office not far from his home, and this job was very important to him because it gave him a new interest in life.
  He had to be taken to work and collected at the end of the day. His father had a car and did this willingly. In all probability this procedure would have gone on indefinitely except that at Christmas of last year the father developed a thrombosis and was told by his doctor that he must not lift this boy in or out of the car any more. This
  1672
  was a tremendous blow to the family, but, nothing daunted, they sold the car and bought an Austin Mini van, and a neighbour of theirs, who was very proficient, set about designing a new van which would be a suitable vehicle for taking this boy to and from work.
  Often when someone has to use an invalid chair to be taken from place to place certain difficulties are presented because the person has to be lifted from the chair into a car and out of the car into the chair on arrival at the destination. The man who designed this van, to whom great credit is due, decided in his design to get rid of this particular difficulty because it proved distressing for the invalid and exhausting for the person who had to do the necessary lifting. The converted van which Gordon Hall now has avoids these things because there are windows all round the sides, the roof has been heightened by 15 in. and the floor lowered by 9 in. The floor has been reinforced with steel and has railway runners on it Which guide the invalid chair in. Inside the van there are steel fitments and a special attachment is fitted to bath sides of the invalid chair. The fitments and the attachment all link up and thereby keep the chair stationary while it is in the van. With the added help of a safety belt, this ensures that the boy has every protection. To gat the invalid chair into the van there is a double steel ramp which, once the chair has been pushed into the van, folds up and forms a number plate.
  This is a step forward which could be useful for disabled people all over the country. I am not a technical expert and I am certain that my explanation of all this is not as comprehensible as it should be, but I have some pictures of the van which I shall pass to my hon. Friend because I am sure that she and the members of the staff of the Ministry of Health could find great interest in them. Who knows, by this van we may be able to do something which will be a tremendous step forward for disabled people all over the country. For the Hall family this new van has been a tremendous asset. It has certainly made life much easier for all of them.

  1673
  So far I have covered only the happy side of this story. The sad part is that, having spent a considerable amount of money on the van and its conversion, the family are faced with a sizeable bill from the Customs and Excise Department. Of course we must be on our guard against people trying to dodge the payment of tax. Rules were made at one stage when people bought vans and made them into shooting brakes, thereby stealing a march on their neighbours. This loophole was deliberately stopped by the Government, but in this case the Halls have not done the conversion for pleasure but out of their necessity. I submit that this van is really an ambulance in miniature.
  If Gordon Hall had been capable of driving, the Ministry would have given him some form of three-Wheeled motorised transport which would have cost about £300. Not only would the Ministry have given him that, but it would have been responsible for maintaining it as long as he had it. The Ministry must look very closely at this problem. Although it does a great deal for people who can drive, it seems to do nothing for those whose condition is such that they cannot drive. I therefore put it to my hon. Friend that, if the Ministry of Health can do very little more to help this boy, perhaps she could use her charm on the Treasury. I hope that for once it may be humane and look at this problem sympathetically.
  This is certainly a worthy and deserving case, and I am quite sure that no one would begrudge some assistance in this case and in similar cases. It is a worthy case, because these people have always tried to help themselves. A few years ago, they sold their house because the stairs were becoming more difficult for the boy to manage. They bought a bungalow, and had to put in certain extras which cost money but which were, in effect, necessities. They had to have a sunken bath for the boy to use. They had to have specially wide doors, and ramps for the wheeled chair to travel on.
  I am quite sure that my hon. Friend will appreciate Mrs. Hall's feelings when the local office of the Ministry told her that if they had been told at that time, some financial assistance would have
  1674
  been given towards those necessary extras. It seems that, all too often, the wasters and spongers who know every single dodge and trick of the trade get everything that is going, while the thrifty, hard-working people who suddenly hit a bad patch find that they have to struggle on alone.
  I wonder whether my hon. Friend could do something to ensure that all disabled people are made fully aware of all the services and assistance available to them because, as a nation, we have a duty to try to do whatever we can for those unfortunate enough to have lost the use of their limbs.
  I thank my hon. Friend for listening so patiently to what I have had to say. I am quite certain that if the decision rested with her alone, I should not be speaking in vain, but I would ask her to use her influence with whichever Department she can, and I hope that tonight she can at least give me some news that will be of advantage to the Hall family.
  10.42 p.m.
  The Parliamentary Secretary to the Ministry of Health (Miss Edith Pitt): If I may say so, my hon Friend the Member for Newcastle-upon-Tyne, East (Mr. Montgomery) put his case very well. He referred to it at the outset as a tragic case, but one should, I think, at once link that with something he said later about these worthy people and the way in which they have helped themselves.
  I will deal first with the point about delay in dealing with my hon. Friend's initial approach to us because, although it is not strictly relevant, I admit his right to raise it in this debate. My hon. Friend wrote to my colleague, the Joint Parliamentary Secretary to the Ministry of Pensions and National Insurance—perhaps because he felt there might have been same responsibility in that Department arising from the fact that Mrs. Hall had visited its local office. As there was no such responsibility, the Ministry of Pensions and National Insurance passed his letter to us on 15th May, which was four days after he wrote it. At the same time, that Ministry advised my hon. Friend that it was transferring the matter to us.
  We, in turn, put inquiries in hand to find out whether there was any way in which the Department could assist. I

  1675
  should explain, though my hon. Friend knows it, that, prior to his approaches, Mr. Hall had been supplied with a wheel-chair, and the one way that was open to us to try to help him further was to consider whether he was eligible for one of our invalid tricycles. It was therefore necessary to consider afresh whether he could drive such a vehicle, and we had to have him medically examined to ascertain whether he would be able to control any form of powered transport.
  That medical examination took place on 1st June. Then all details had to be reported to us at the Ministry in London, from Norcross. I do not have to tell my hon. Friend that Norcross is in Lancashire, but it is where all questions in relation to invalid vehicles are dealt with centrally. It therefore takes a little longer for papers to pass to and from London. In the meantime I sent my hon. Friend an interim reply on 7th June telling him that inquiries were in progress. There followed the break of Whit-sun. I do not want to raise this as any prime cause of delay, but it happened and involved some delay.
  Finally, with all the facts, I was able to reply to my hon. Friend fully on 4th July. I am sorry that this correspondence took longer than I would have liked. Unfortunately, as I explained to my hon. Friend in this reply of 4th July, the report following the medical examination left very little doubt that Mr. Hall was quite unable to drive himself. It is true, as my hon. Friend has said, that had he been able to drive he would most probably have qualified for a tricycle. The tricycle, of course, would have remained the property of my Ministry and we should have been responsible for its maintenance.
  Again I must explain, as I have explained previously in the House when this question of the provision of transport for disabled people has been debated, that the powers to do what we do are contained in Section 3 (1, b) of the National Heath Service Act, 1946, which provides that
  "it shall be the duty of the Minister to provide throughout England and Wales, to such extent as he considers necessary to meet all reasonable requirements…medical, nursing and other services required at or for the purposes of hospitals."
  1676
  This means that we can regard an invalid tricycle as an appliance required
  "at or for the purposes of hospitals."
  But that power cannot be extended to provide a vehicle in the ordinary sense of the word. It does not permit us to provide to National Health Service patients a motor car or to contribute to the maintenance of a private car. Therefore, we have no powers which would enable us to help with the conversion of the Austin Mini van purchased by the father in this case.
  I am very interested to learn of the conversion which has been done to the van. I think that the Halls are fortunate to have such a good neighbour who seems to have made an excellent jab of converting the van. I shall be most interested to borrow the photographs from my hon. Friend, and certainly I am sure that my Department will be glad to study the conversion made here in order to enable Mr. Hall to travel in the van. I am glad, too, that it has given easier mobility to this young man. But I am afraid that there is no way in which we can contribute to the cost of the vehicle which enables him to be carried as a passenger.
  My hon. Friend mentioned the question of Purchase Tax payment involved in the installation of windows in this commercial vehicle. As my hon. Friend will appreciate, this is a matter for my right hon. and learned Friend the Chancellor of the Exchequer, but I understand that inquiries are being made into the matter on his behalf and that he will be writing to my hon. Friend when the inquiries are complete.
  I come now to the powers of local authorities to help with welfare services for the physically handicapped, because this is relevant both to applications for assistance with the cost of converting the van and conversions to the bungalow which I understand the family moved into some two years ago.
  In the matter of the welfare services for the physically handicapped, Section 29 of the National Assistance Act, 1948, gives powers to local authorities, county and county borough councils to provide welfare services for the blind, the deaf or dumb
  "and other persons who are substantially and permanently handicapped by illness, injury, or congenital deformity"

  1677
  that is, the general classes of the handicapped. Under the terms of the National Insurance Act, welfare services are provided by authorities in accordance with schemes approved by the Minister.
  The Newcastle County Borough Council has had an approved scheme for the provision of welfare services for the general class of the physically handicapped since 1952. The Newcastle scheme, in common with those made by other authorities, follows closely the model scheme issued by the Ministry. Under its terms certain provisions are mandatory but others are permissive. Under the permissive powers contained in clause 5 (5) of the scheme, the authority may assist handicapped persons in arranging for the carrying out of any works of adaptation in their homes or the provision of any additional facilities designed to secure the greater comfort or convenience of such persons and, if the council so determines, to defray any expense involved in carrying out such works or the provision of such facilities.
  It is considered by the Ministry that under this Clause the authority would have power to assist in adaptations made to improve the van to enable Mr. Hall to be wheeled in and out of it. It is understood by the chief welfare officer of Newcastle County Borough that his council would also be likely to take this view. The powers of the clause are widely used by the council to assist handicapped people but it must be appreciated that it is entirely for the council to decide how far and in what circumstances it should exercise the powers contained in this and other permissive clauses of its scheme.
  I understand that Mr. Gordon Hall's father wrote to the council in February this year applying for a grant from the council towards the cost of adaptations to the Mini van to accommodate his severely handicapped son. It was understood that the intention was that the father, who had recently been seriously ill, should drive his son daily to and from his work. The council looked very carefully into this application but came to the conclusion that no grant should he made towards the cost of the conversion since the state of health of Mr.
  1678
  Gordon Hall's father was such that he could not render any assistance which might be required by his son. The council, for this reason, took the view that it was not appropriate that Mr. Hall's father should participate in any way in conveying his son to and from work.
  The chief welfare officer of the council got in touch at once with the regional office of the Ministry of Labour to ascertain whether that office could assist in the provision of transport for Mr. Hall to and from his work. We understand that the Ministry of Labour readily agreed to do this and to pay £1 10s. a week towards the weekly cost of taxis amounting in all to £2 10s. We have been informed by the Ministry of Labour that this arrangement continued until 13th June when they were notified by Mr. Hall that a taxi was no longer required since the family had its own converted vehicle in which he could be transported.
  My hon Friend also raised the question of adaptations to the bungalow and said that Mrs. Hall had been told by the local office of my Ministry that had she gone to that office earlier she could have been given help with the cost of these conversions. I feel that there must have been some misunderstanding because, again, my Ministry has no power to do this, but I understand that it could have been done by the local authority although it seems that no application was made to the authority. I am sorry that the Halls have not been able to obtain help in this way and that in turn there is no way in which I can help them from the Ministry.
  I want to assure my hon. Friend that both in my Department and, as I know from inquiries I have made, in the county borough council there is the utmost sympathy and understanding with Mr. Gordon Hall and his family. We in the Ministry are not able to do any more than the little we have already done, and the decision here is entirely one for the council to make in the light of its knowledge of the circumstances of the family.
  Question put and agreed to.
  Adjourned accordingly at five minutes to Eleven o'clock.

EDUCATION
  Civil Servants
  Civil Servants
  Leyton
  Leyton
  South-East Essex Technical College
  South-East Essex Technical College
  Teachers, Kirkby and Huyton
  Teachers, Kirkby and Huyton
  Teachers' Pensions (Widows)
  Teachers' Pensions (Widows)
  Freedom from Hunger Campaign
  Freedom from Hunger Campaign
HOUSING
  Consortium of Local Authorities
  Consortium of Local Authorities
  Manchester
  Manchester
  Estate, Dagenham (Planning Permission)
  Estate, Dagenham (Planning Permission)
  Building Costs
  Building Costs
  Slum Clearance, Liverpool
  Slum Clearance, Liverpool
  Metropolitan Borough Councils Compulsory Purchase Orders)
  Metropolitan Borough Councils Compulsory Purchase Orders)
LOCAL GOVERNMENT
  Land Development (Information)
  Land Development (Information)
  National Parks and Access to the Countryside Act, 1949
  National Parks and Access to the Countryside Act, 1949
  London Government (Essex)
  London Government (Essex)
  Local Government Boundaries (West Riding)
  Local Government Boundaries (West Riding)
TRADE AND COMMERCE
  Scotland (Minister's Visit)
  Scotland (Minister's Visit)
  National Coal Board (Cowdenbeath Workshops)
  National Coal Board (Cowdenbeath Workshops)
  Civil Servants
  Civil Servants
  Industrial Development Certificate, Tiverton
  Industrial Development Certificate, Tiverton
  Falmouth and Penryn
  Falmouth and Penryn
  Port Glasgow Industrial Estate
  Port Glasgow Industrial Estate
  Linwood, Renfrewshire
  Linwood, Renfrewshire
NATIONAL FINANCE
  Royal Shakespeare Theatre Company
  Royal Shakespeare Theatre Company
HOME DEPARTMENT
  Riding Establishments Act
  Riding Establishments Act
  Living on Immoral Earnings (Convictions)
  Living on Immoral Earnings (Convictions)
  Aliens (Deportation)
  Aliens (Deportation)
  Manchester Prison
  Manchester Prison
  Police Duties (Fascist Meetings)
  Police Duties (Fascist Meetings)
  Civil Defence Corps and Auxiliary Fire Services
  Civil Defence Corps and Auxiliary Fire Services
  Commonwealth Immigration (Advisory Council)
  Commonwealth Immigration (Advisory Council)
POST OFFICE
  Satellite Communication System
  Satellite Communication System
MINISTRY OF DEFENCE
  Bacteriological Warfare
  Bacteriological Warfare
AGRICULTURE, FISHERIES AND FOOD
  Potatoes (Prices)
  Potatoes (Prices)
  UNITED NATIONS ACTING SECRETARY-GENERAL (DISCUSSIONS)
  UNITED NATIONS ACTING SECRETARY-GENERAL (DISCUSSIONS)
  Subsidies
  Subsidies
  NUCLEAR TESTS
  NUCLEAR TESTS
ROADS
  South Tees-side Parkway
  South Tees-side Parkway

Preamble
The House met at three of the clock, The LORD CHANCELLOR on the Woolsack.
Prayers—Read by the Lord Bishop of Chichester

VEGETABLE PRICES
BARONESS BURTON OF COVENTRY: My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
[The Question was as follows:
To ask Her Majesty's Government what steps they propose to take to ensure that when wholesale prices in vegetables drop some similar change is effected in prices charged to consumers.]
THE JOINT PARLIAMENTARY SECRETARY, MINISTRY OF AGRICULTURE, FISHERIES AND FOOD (EARL WALDEGRAVE): My Lords, I cannot accept the implication in the Question that movements in the retail prices of vegetables do not regularly reflect those in the wholesale markets. I am afraid that it would not be practicable, even if it were desirable, for the Government to intervene.
BARONESS BURTON OF COVENTRY: My Lords, might I ask the noble Earl if he would be kind enough to tell me whether I heard him correctly? Did he say that prices to the consumer do not reflect prices in the wholesale market? I do not know whether I had that wrong.
EARL WALDEGRAVE: My Lords, the noble Lady, I think, did not hear one of the "nots". It was a double negative. I said that I could not accept the implication that movements in the retail prices of vegetables do not regularly reflect.…
BARONESS BURTON OF COVENTRY: Thank you. If I put on my glasses to read what I have here, perhaps the Minister would tell me whether this
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information is correct. Could he tell us whether, in so far as potatoes were concerned last week, it is correct that the wholesale prices to farmers dropped by £1 per cwt., but that potato prices stayed up at around 10d. or 1s. a lb. in the shops? Would he know whether that information is correct?
EARL WALDEGRAVE: My Lords, I think that it would be correct to say that the wholesale prices of potatoes probably did fall between 15s. and 20s. per cwt., but the indications are that retail prices in the shops have generally been reflecting the general trend of the downward fall.
BARONESS BURTON OF COVENTRY: My Lords, is the Minister aware that there is one point on which I can definitely comment there? After buying my own potatoes, I can assure him that they were at that price. They certainly did not fall below 10d. or 1s. What I am not clear about—and I should like the Minister's opinion on it—is this. Could he tell me whether the price of 10d. or 1s. per lb. reflects the fall in the wholesale price to the farmers, or was that the price before the fall took place?
EARL WALDEGRAVE: My Lords, I cannot pretend that I know the exact facts stated by the noble Baroness in her own particular piece of shopping. But I can say that the wholesale prices have been falling in this last week and that, by and large, by competitive shopping—and this is the only real control—it is possible to buy cheaper goods which will reflect the fall in the wholesale price.
BARONESS BURTON OF COVENTRY: My Lords, may I finally ask the Minister whether he is aware that I realise that it is better to let other people blow one's trumpet than to blow it oneself, but does he know that I am a most competitive shopper, that I do look at the prices, and that they are that price throughout; and that it is not the slightest use for a Minister on the Front Bench who does not go shopping for potatoes to tell me that I can get them more cheaply than the price at which I saw them?
EARL WALDEGRAVE: My Lords, I should not dare to compete with the noble Baroness in shopping.
VISCOUNT ALEXANDER OF HILLSBOROUGH: My Lords, would the Minister mind if we reminded him of a commodity which is not under discussion of the moment, meat? Last year the price fell about 40 per cent. at certain times, but the butchery trade themselves admitted up to only 7 per cent. reduction.
LORD AMWELL: My Lords, may I ask where this competitive marketing is to be found?—not in Hampstead, where I live.
EARL WALDEGRAVE: My Lords, I do not know the shops in Hampstead. I know better those in the South-West part of London, but I am sure that if you shop competitively you will find goods, perhaps of similar quality, at different prices in different shops. The noble Lord would find that, for example, in the King's Road, if he would perhaps come and visit me.
LORD STONHAM: My Lords, reverting to the original Question, is the noble Earl not aware that, particularly in salad materials, sharp falls in wholesale prices are not reflected in falls in retail prices, because retailers tend to maintain the same price? He must be aware of that, from his own experience in horticulture.
EARL WALDEGRAVE: My Lords, I am not aware of this. The whole question of the retailers margins and the passing on of wholesale price falls was gone into very carefully by the Committee presided over by the noble Viscount, Lord Runciman of Doxford; and it was not found, after the most exhaustive inquiries, either that excessive margins were made in the retail vegetable trade, or that, toy and large, the prices did not, as they naturally must in a competitive society, follow one another.

TESTING AND USE OF NEW DRUGS
3.6 p.m.
BARONESS SUMMERSKILL: My Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.
[The Question was as follows:
To ask Her Majesty's Government whether they are prepared to assume responsibility for the consequences of the taking of drugs which may be prescribed by the National Health Service without the patient knowing either the name and nature of the drug, or its possible side-effects.]
LORD NEWTON: No, my Lords.
BARONESS SUMMERSKILL: My Lords, is the noble Lord aware that the pharmaceutical service of the National Health Service cost this country last year £84 million, the highest figure reached yet? This was distributed between the drug producers and the chemists for dispensing. Could the noble Lord tell me, in view of the fact that 50 per cent. of these drugs were untested or inadequately tested, if the Government refuse to take responsibility for the irresponsible elements in the pharmaceutical industry, how the public are to be protected?
LORD NEWTON: My Lords, I cannot accept that this considerable quantity of drugs was either not tested or inadequately tested, as the noble Baroness is alleging. If, in fact, she were right, I imagine that actions would lie against the drug manufacturer.
BARONESS SUMMERSKILL: My Lords, does the noble Lord then dissent from the statement made by Professor Wilson, Professor of Pharmacology at Sheffield, who has been quoted time after time, and never before been refuted? And is the noble Lord suggesting to this House that his knowledge of drugs is much greater than that of one of the most eminent specialists in the country?
LORD NEWTON: My Lords, I am not going to argue about what one particular eminent gentleman has said, but to the best of my knowledge there is no reason for such alarm and despondency as the noble Baroness has just shown to your Lordships.
LORD TAYLOR: My Lords, is the noble Lord aware that, for various technical reasons, most drugs cannot be tested on human beings, or only on very inadequate trials; and that Professor Wilson is perfectly correct in what he said, and that it is no good his denying it? It is well known that these drugs are not tested. They are mostly tested on animals, and on various small-scale trials on human beings.
LORD NEWTON: My Lords, I do not know quite what conclusion should be drawn from that. As I understand it, in the testing of drugs there are two stages. First of all, there is the laboratory test, in which animals are probably used. I am advised by those who advise me on these matters that, however exhaustive these laboratory tests, it is impossible to have absolute certainty until you have clinical trials which are carried out by doctors on their patients. For instance, in the case of thalidomide I am advised that until it was actually tried out on pregnant women, one could not be sure that there would be these undesirable side-effects. As I have said, I do not see what conclusion one draws from these facts, except that apparently every potent drug has some side effect or other, and it must be for doctors who prescribe potent drugs to decide whether or not they think it appropriate to prescribe that drug for their patient.
LORD SHEPHERD: My Lords, am I right in thinking that the noble Lord said that a patient might make a claim against the drug manufacturer if there was some ill-effect? I cannot follow that, and I am sure the noble Lord will agree that the majority of patients receive a prescription with no idea of what they are being prescribed; and certainly there is no question of their identifying the manufacturer with the drug which has been supplied.
LORD NEWTON: My Lords, I should think that the patient might have a case against the doctor or against the manufacturers, according to the circumstances, but I do not think it is for me to pronounce upon legal matters of that sort or complexity. What I was suggesting earlier in my reply to the noble Baroness was that if it were really the case that manufacturers put on the market drugs which had not been properly tested, and they proved to be
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dangerous, it might well be that a case would lie against them.
LORD TAYLOR: My Lords, the noble Lord asked what conclusion was to be drawn from his remarks. The conclusion that I drew was that his second remarks were not in agreement with his first remarks.
LORD LINDGREN: My Lords, speaking as a layman, could the noble Lord tell the House whether the normal National Health patient is the guinea pig for the drug manufacturers?
LORD NEWTON: No, my Lords, that is not so at all.
BARONESS SUMMERSKILL: My Lords, my noble friend is quite right. The noble Lord, Lord Newton, said just now that until these drugs were tried on pregnant women, no one know what the results were. Does the noble Lord not know that, after these appalling congenital abnormalities were discovered, this drug for the first time was tried on pregnant rabbits and the offspring of these rabbits suffered from the same congenital abnormalities? Does that not prove that this drug had never been adequately tested?
LORD NEWTON: My Lords, it was also tried recently on pregnant rats and there were no symptoms of deformity in the offspring.
LORD SALTOUN: My Lords, is it not the case that all these new drugs are tried out not on National Health patients only but on us all, and all have to take the risk? Some of us fall and some of us do not.
VISCOUNT ALEXANDER OF HILLSBOROUGH: My Lords, could I ask the Minister whether he would put it to his right honourable friend, in view of the serious doubts which have been expressed, that some further inquiries might be made into this question and a report made to Parliament?
LORD NEWTON: My Lords, I will certainly undertake that my right honourable friend will study what your Lordships have said this afternoon. May I say that we seem now to be getting on to the next Question, and perhaps the noble Baroness may now think fit to ask it?

THALIDOMIDE AND EXPECTANT MOTHERS
3.13 p.m.
BARONESS SUMMERSKILL: My Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
[The Question was as follows:
To ask Her Majesty's Government whether in those cases where the expectant mother had been prescribed thalidomide under the National Health Service they are prepared to assume responsibility for the welfare of the children, born suffering from crippling congenital abnormalities, to relieve the future financial difficulties of the parents.]
LORD NEWTON: My Lords, comprehensive welfare services are available for these, as for other children with congenital deformities.
BARONESS SUMMERSKILL: My Lords, would the noble Lord consider this? If these children had lost their limbs in a railway crash, the parents would have brought an action, not against the engine driver but against the Railway Executive and received heavy damages. If they had lost their limbs in a road accident, their parents would have been indemnified, so far as finance was concerned, by the insurance company. Would not the noble Lord consider asking the Ministry of Health, in the first place, and if they refuse to accept the responsibility, the drug company which is responsible for this, to give substantial financial help to these parents in order that their children should have some security in future? Secondly, would he urge the pharmaceutical industry to cover themselves with some comprehensive insurance policy in order that, if this kind of thing recurs, the parents or whoever might be damaged or have their health injured, or happiness impaired, might have at least some recompense, however inadequate?
LORD NEWTON: My Lords, if it could be proved in a court of law that the manufacturers of thalidomide had in one way or another been negligent, perhaps the court would then award damages. As regards making an appeal to the manufacturers on the lines suggested
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by the noble Baroness, I am sure that they will take note of what has been said in your Lordships' House this afternoon but I doubt whether it is for me, standing at this Box, to make any further comment on the matter.
LORD AMWELL: My Lords, should this be left to competitive marketing?
LORD NEWTON: My Lords, I am afraid that I do not understand the significance of the noble Lord's question.
BARONESS SUMMERSKILL: My Lords, may I ask the noble Lord one more important question? Is he aware that this drug was put on the market in December, 1958, and was not removed from the market until December, 1961? Therefore, there are still women who became pregnant during that time and who have still to bear their children. Has he collected the names of the women who are still pregnant and who have taken this drug?
LORD NEWTON: No, my Lords, I have not collected the names. Perhaps I should say this to the noble Baroness. There have always been children born physically impaired in this country. For years now, from 150 to 160 cases of all ages of congenital limb deformities have been referred annually to the limb fitting centres. There was an article in the Lancet of June 16 of this year, by Dr. Smithers, of Liverpool, which shows that in a series of 59 cases up to January, 1962, where babies were born with limb deformities, thalidomide appears to have been responsible in less than half. For children to be born with limb deformities is no now thing and the risk is always present. Whenever a deformed child is born—perhaps I can have the attention of the noble Baroness—it is a tragedy both for it and for its parents, whatever the cause. I do not see how the State could seek to distinguish between two congenitally deformed children just because one mother took thalidomide during pregnancy and the other did not.
LORD TAYLOR: My Lords, surely the difference is that this is a man-made deformity. It is a deformity for which we as human beings are responsible by our foolishness, if you like, in prescribing this drug.
LORD NEWTON: My Lords, I have made very careful inquiries from my technical advisers to discover if the other causes of these deformities are known and the answer is that they are not known. Perhaps these unknown causes may also be wholly or in part man-made, to use the noble Lord's term. So I still do not see the valid distinction to which I referred in my previous answer.
BARONESS SUMMERSKILL: My Lords, may I refer the noble Lord to the British Medical Journal of July 9? It gives him the answers to all his technical questions.
LORD NEWTON: My Lords, I have read it most carefully.
LORD GRENFELL: My Lords, would my noble friend pass on to his right honourable friend the Minister of Health a suggestion that he should call a conference to discuss means of assisting both these children and their parents, and also inform his right honourable friend that the Children's Aid Society would be pleased to take part in this conference, if it were called, and do all they could to help in these very tragic circumstances?
LORD NEWTON: My Lords, of course I shall ask my right honourable friend to bear in mind what my noble friend has just said.
LORD MORRISON OF LAMBETH: My Lords, can the noble Lord say whether there is any machinery whereby local health authorities report the kind of cases to which my noble friend Lady Summerskill has referred? And, if there is not machinery to obtain the relative particulars, would the Minister consider circularising local authorities so that that informatoin can be obtained?
LORD NEWTON: My Lords, my right honourable friend's Department has already taken steps, and is still taking them, to ensure that those who are likely to be concerned with the early recognition, assessment and treatment of cases of congenital abnormality are fully aware of the services and appliances available under the Health Service, of the action needed to put them at the service of patients, and of the advice and guidance which can and should be given to parents. These steps will also ensure
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that clinics have ample notice of special requirements well before the age at which the patient may need an appliance.
LORD MORRISON OF LAMBETH: My Lords, that is all right, so far as it goes, and it is useful. But what I am sure my noble friend wants is factual information of the number and nature of these cases. The provision for advice being given to parents is all right, but cannot the Minister get the facts about this?
LORD NEWTON: My Lords, I very much doubt whether, even if careful inquiries were made, specific information would be available, because I am advised that there may well be instances in which mothers-to-be have taken thalidomide and produced perfectly normal children.
LORD TAYLOR: My Lords, is not the point that these congenital abnormalities can very easily be made notifiable by the doctor or the midwife to the local authority, exactly as complications of births are made notifiable? There is no difficulty about this.
LORD NEWTON: My Lords, I take it that the noble Lord is using the term "notifiable" in the strictly technical sense. I think the answer is that diseases are made notifiable for the protection of the community; that is to say, when the disease is infectious or contagious. But they are not made notifiable for the compilation of purely factual information.
LORD TAYLOR: With great respect to the noble Lord, I think he is in error.
LORD NEWTON: No, my Lords. I inquired most carefully about this earlier.
LORD TAYLOR: My Lords, if the noble Lord inquires still more carefully, he will discover that from time to time diseases are made notifiable for research purposes: for example, the making notifiable of rheumatic fever, for which there is no evidence of infection, in certain particular cases.
LORD NEWTON: My Lords, I take that from the noble Lord, but that is not in accord with my information.
LORD MORRISON OF LAMBETH: The noble Lord's Department is often wrong.

LONDON COUNTY COUNCIL (MONEY) BILL
Read 3a, and passed.
RIVER DART NAVIGATION BILL
Read 2a.
LICENSING (SCOTLAND) BILL [H.L.]
Returned from the Commons, agreed to, with Amendments: the said Amendments to be printed.

PIER AND HARBOUR PROVISIONAL ORDER (LANGSTONE HARBOUR) BILL
Order of the Day for the Second Reading read.
THE PARLIAMENTARY SECRETARY, MINISTRY OF TRANSPORT (LORD CHESHAM): My Lords, this is a Bill to confirm a Provisional Order made by my right honourable friend the Minister of Transport under the General Pier and Harbour Act, 1861. Its effect is to constitute and incorporate the Langstone Harbour Board and to enact provisions with regard to it; to prescribe the limits of Langstone Harbour and to provide for the continuance of existing by-laws, rules, regulations and orders relating to the harbour, as well as to other detailed matters; to confer upon the Board borrowing and other financial powers; to empower the Board to advertise the amenities of the harbour and to make charges for services and accommodation provided by them; and to incorporate and apply, with or without amendment, provisions contained in General Acts. There were 22 objections made to the draft Order. They were all met, either by arrangements agreed between the Promoters and the objectors, or by agreed amendments made to the draft Order. There is no other special point to which I need draw your Lordships' attention. I beg to move.
Moved, That the Bill be now read 2a.—(Lord Chesham.)
VISCOUNT ALEXANDER OF HILLSBOROUGH: My Lords, I am glad to hear from the last part of the noble Lord's speech that all the objectors were met. Did they, by any chance, include the Admiralty?
LORD CHESHAM: My Lords, that is a piece of information I have not got.
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I have not personally considered individual objections, because, knowing that they had been met, I did not think it was necessary for me to do so. But if the noble Viscount wishes, I will find out and write to him about it.
VISCOUNT ALEXANDER OF HILLSBOROUGH: My Lords, I am obliged.
On Question, Bill read 2a, and referred to an Unopposed Bill Committee.

JAMAICA INDEPENDENCE BILL
House in Committee (according to Order).
House resumed: Bill reported without amendment.
Report received.

LOCAL GOVERNMENT (RECORDS) BILL
Report of the Amendment received (according to Order).

COLONIAL LOANS BILL
3.25 p.m.
Order of the Day for the Second Reading read.
THE MINISTER OF STATE FOR COLONIAL AFFAIRS (THE MARQUESS OF LANSDOWNE): My Lords, I beg to move that this Bill be now read a second time. I should like to explain the purposes of this short Bill, Which will, I trust, be approved by your Lordships. As your Lordships know, the International Bank for Reconstruction and Development was established after the war to finance reconstruction in countries which had suffered from the war, and for post-war development. Only independent Governments can be members of the Bank, but the Bank may make loans not only to members but also to their dependent territories, provided that the loan is guaranteed by the member Government responsible for the borrowing territory.
The Colonial Loans Act was passed in 1949 in order to give the Treasury authority to guarantee borrowing by British dependent territories from the International Bank, and the principal purpose of the present Bill is simply to

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increase the amount for which guarantees can be given. Clause 1 (1) proposes to increase from £100 million to £150 million the aggregate amount of borrowing by British dependent territories from the International Bank which can be guaranteed by the Treasury. The International Bank loans guaranteed so far total nearly £88 million. There are applications for further loans, totalling over £6 million at present lodged with the Bank and under consideration. In addition there are a number of projects for loan assistance from the Bank under consideration in the territories but not yet lodged. The limit of £100 million laid down in the Colonial Loans Act. 1952, is likely to be reached fairly soon, and we therefore propose that this limit should be increased to £150 million.
Clause 1 (2) is designed to deal with the position in East Africa. The existing provision in section 1 (1) of the 1952 Act was enacted to enable the Treasury to guarantee loans from the International Bank to the East Africa High Commission. The East Africa High Commission, noble Lords will remember, was constituted by the Governors of Kenya. Tanganyika and Uganda to run certain common services partly of a Governmental nature, such as the administration of customs, and income tax, and partly of a commercial nature, such as the operation of railways, posts and telecommunications. Following the grant of independence to Tanganyika, the East Africa High Commission has been replaced by the East African Common Services Organisation which performs similar functions. Subsection (2) of Clause 1 of this Bill is intended to apply to the situation which will obtain upon the grant of independence to Uganda in October of this year, when the membership of the Common Services Organisation will consist of two independent territories and one colonial territory. This subsection will empower the Treasury to guarantee International Bank loans to the Organisation until all three territories are independent.
Clause 1 (3) extends the scope of the Colonial Loans Act to the New Hebrides, where we have a condominium with the French Government, which is not covered by the definition "colonial territory" in the 1952 Act. Although
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there is no immediate prospect of a loan application to the International Bank from the New Hebrides, it is considered desirable to take this opportunity to include the New Hebrides within the ambit of the Colonial Loans Act.
If ever a proposal for a loan for the New Hebrides were considered, we should of course act in consultation and co-operation with the French Government.
The loans which have been made by the International Bank have been, as noble Lords are well aware, of tremendous assistance to colonial development over the last ten years in complementing both the loans available from the London market, and the aid which we ourselves give. The loans which have been made to the African territories, and to British Guiana and Trinidad, have been for the development of railway and road transport, harbour facilities, electric power development and agricultural and land settlement schemes. These loans have been of great advantage to the United Kingdom and the dependent territories, and we very much appreciate the help which has been given in this way.
My right honourable friend paid particular tribute, in introducing this Bill in another place, to the work of Mr. Eugene Black, the President of the World Bank. I am sure your Lordships endorse that tribute. The International Bank is valuable to the colonial territories, not merely as a source of funds, but also for its advice on development problems. Before making a loan, the International Bank expects to conduct a general survey of the economic and financial policy of the potential borrower, and to be satisfied, in broad terms, that the territory is devoting its resources to the most suitable kinds of development, and that it is likely to be able to meet any known further commitments.
If the Bank is satisfied on these general aspects, it proceeds to a detailed examination of the particular project for which the loan finance is sought, and technical experts study the proposals in question. We have been particularly glad to note that the Bank's activities in the field of technical assistance are increasing. They have decided to form a group of highly qualified development advisers who will

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be able to go to member countries, on request, for extended periods, and actually work there. Assistance from the Bank, of course, only complements the aid which we ourselves give. I am not quite sure that the extent of our aid is always clearly appreciated. The total of our aid to the Colonies has grown from about £35 million in 1957–58 to about £94 million in 1961–62—and this, my Lords, over a period when a number of territories have moved to independence. I feel sure that your Lordships will approve this Bill, and I ask you to give it a Second Reading. I beg to move.
Moved, That the Bill be now read 2a—(The Marquess of Lansdowne.)
3.35 p.m.
THE EARL OF LISTOWEL: My Lords, we welcome this Bill, and I am sure it will be generally welcomed in the House. I am grateful to the noble Marquess for giving us such a clear exposition of its contents, and for recommending it in the terms he used. I do not intend to follow the noble Marquess in his remarks about aid to our Colonies, because I am going to deal with that next week. If he will allow me, I will therefore not inflict the same speech on the House twice, but I should like to say something about the World Bank. I think we all agree that the World Bank has already proved an invaluable agency for providing these long-term credits for developing countries inside the Commonwealth, and outside the Commonwealth as well. Their loans are more acceptable to these countries, as I know from my personal experience, than loans from other Governments, because they are never suspect of political motives. The unfortunate thing about bilateral arrangements is that, even when these suspicions are far from justified, the recipients are apt to think that the donors have ulterior motives. For this reason of obvious innocence I am sure the Bank will be called on more and more, both for loans and for the economic surveys and technical aid, to which the noble Marquess referred, to assist these countries in the work of developing their economies.
I should like to join with the noble Marquess in his tribute to Mr. Eugene Black, the President of the Bank. Mr. Black has inspired confidence all over the world by his really remarkable com-
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bination of financial acumen of Wall Street, and a degree of human sympathy and understanding rare in business and, indeed, in every walk of life. J speak in this matter from some degree of personal experience because I was able to observe his impact on Ghana during the time that he, with his wife, stayed with me in Accra, while he was studying the Volta Hydro-Electric Scheme, for which now the World Bank has advanced a considerable loan. By increasing our guarantee to cover a further £50 million in loans to the Colonies from the World Bank we shall, of course, extend the scope of its work, and I am particularly glad to see that under this scheme, under what is intended both by the Government and by the World Bank, independent Commonwealth countries in Africa, as well as the Colonies, will benefit. I think this is the first time that some of the poorer and less credit-worthy independent countries in the Commonwealth will benefit from a United Kingdom guarantee. Some of this money will be lent, as the noble Marquess said, to the East African Common Services Organisation, and the position there is that Tanganyika is already independent, and Uganda will be in October. So the two indigent ex-British Colonies in Africa will be benefiting from a British guarantee.
I suppose the cheapest way to stimulate economic development in the Colonies, or anywhere else, is to give a guarantee which you are dead certain you will not be asked to pay for later on. These loans are, of course, hard-headed commercial loans, usually at a rate of 6 per cent. interest, serviced by Governments which in the past have never defaulted; and, indeed, the World Bank is so shrewd in business dealings that I do not think there is any likelihood of any default in time to come. Of course, this limits the application of these loans to countries that are considerably more advanced in their economic development than are most of the underdeveloped areas in the Commonwealth or, indeed, in the outside world. These countries to which the World Bank make loans have already an infrastructure of communications and social services that many others lack.
Hence the very great importance—and I should like to refer very briefly

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to this because it is part of the World Bank, and I warned the noble Marquess that; I was going to ask him some questions on this subject—of the establishment in 1960 of the International Development Association as a subsidiary of the Bank. The I.D.A. is of course able to give these "soft", ultra-long-term loans at a nominal rate of interest in the early years, and this type of loan is undoubtedly the most useful credit instrument for underdeveloped countries in the Commonwealth; and one hopes it will be used much more frequently in time to come. It gives them the time they need to build up their economic and social infrastructure, which they must do before they can start to pay their own way. Hence the great value of I.D.A. for the example it has set to wealthy countries as well as for its usefulness to the poor countries to which it has already lent money.
My Lords, I believe that last year, the first full year of operation of the I.D.A., they approved loans of almost 180 million dollars. That, of course, is chicken feed in terms of money loaned from the wealthier countries, but this money has been very well spent and it is setting a very good precedent for the future. The I.D.A. also has the advantage that it can accept contributions from non-members as well as from its member countries; and Sweden, I believe, has very substantially increased its aid expenditure and has given 6 million dollars this year.
I come to the questions that I propose to address to the noble Marquess. They were started in my mind by a talk I had a short time ago with a senior official of the World Bank. He was expressing some anxiety about the future of the I.D.A. I do not for one moment suggest that I am repeating exactly what he said, but I think this is the gist of what he told me. Roughly, the total capital of the I.D.A. has either been committed or is about to be committed; 250 million dollars have already been lent and another 3 million dollars are under active consideration for loans which will probably be made. This means that within a year from now the capital of this fund is likely to be pretty well exhausted, and I have no doubt that the Government will be
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asked what they intend to do in the very near future. I want to ask the noble Marquess three questions. Can he tell me whether he and the Government are already aware of the serious financial position of the I.D.A.? Can he say when the Government will be in a position to decide about making a further contribution to these funds? and my third question is this: are the Government already doing their best to persuade other members of this organisation, particularly the richest members—United States, France and Western Germany—to give more money? My Lords. I cannot help feeling that the sincerity of the Government's support of the World Bank will be judged more by what they give in cash than by what they give in promises.
3.45 p.m.
LORD OGMORE: My Lords, there is not much that I want to say in addition to what has already been said. I should like to welcome this Bill, which I think is one which should command the support of your Lordships in whichever part of the House you may sit; but there are one or two observations that I should like to make. It is perfectly true that the World Bank and the I.D.A., about which the noble Earl, Lord Listowel, has been speaking, have done great service and, in fact, day to day they do a great service in what used to be called the underdeveloped territories but, as they did not like that very much, are now called the developing territories. However, it is no good disguising from ourselves the fact that these institutions, particularly the World Bank, have certain weaknesses. The strength is the obvious one that the noble Earl, Lord Listowel, mentioned—namely that there are no obvious national strings; in fact, no national strings at all. And they do make these very valuable surveys to which the noble Marquess has referred. The Uganda survey was recently made and I believe, although I have not actually seen it, that it is a masterpiece. But there are certain weaknesses.
First of all, the World Bank demands a guarantee from some member Government; and that is why this Bill comes before us to-day, so that we—that is to say, the British Government or the British taxpayer—may guarantee loans

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which, after most careful examination, the Bank proposes to make. In other words, we have to put up the collateral, which is perfectly well known in domestic banking and has been carried into the sphere of world banking. Then, the repayment has to be made in the currency lent. In the past that has usually been dollars, but, as dollars are not quite so hard as they used to be, presumably that might now be in Swiss francs or deutschmarks, or whatever particular currency is desired by the borrower. This is, or may be, a considerable hardship to the borrower. In order to service and repay the loan, he has to buy the necessary currency from the particular country in whose currency the loan was made to him through the Bank.
Then, also, they are, of course, loans. The loan has to be repaid and mainly it has to be serviced; interest has to be repaid. Just recently one of the leading figures of the World Bank —Mr. Hoffman, so far as I can recall—issued a warning note. Speaking in Geneva, he said that there was a grave danger that many territories might borrow large sums from the World Bank and be unable to go on with the projects, and that there would be a considerable number of derelict projects round the world which the various countries had not the money or the resources either to complete or to maintain. That is a very real problem in finance of this kind.
So far as the United States is concerned, there is the Agency for International Development. That also does extraordinarily good work, but there is a weakness here also. It is that the Agency for International Development, which was inaugurated about a year ago and comprises all the former agencies dealing in this field of aid, owing to the dollar stringency and to the pressure of Congress has had to make a rule just lately that all purchases by borrower countries or borrower projects have to be made in the United States or have to be spent on United States goods or services. That is a very grave restriction, of course, to the borrower. Although there may be cheaper goods or services elsewhere he cannot spend the loan on them. He has to go to the United States.
I have always told my friends in foreign countries, in Europe, America
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and elsewhere, that the only country which is really tackling this problem in a realistic and comprehensive way is Britain, and although we may not have, indeed do not have, as much in development as some of us would like, still we have all the agencies for loans and grants and for the provision of equity or share capital that other lending countries ought to have. These territories need not only finance, not only finance in the shape of loans which have to be serviced and repaid; they need shareholders capital, equity capital, capital that is going to take a risk. The trouble with borrowing money is that sometime or other you must repay it, and often when it is very difficult to do so. With regard to equity capital, shareholding capital, it shares in the risk, and if the project does not go quite so well then it is just too bad; the person who has part of the equity takes part of the loss.
Then, I think most important of all, there is the question of management. It is an extraordinary thing that in an industrial and commercial nation like Britain it is practically impossible, in my experience, to explain to people who have no experience overseas that one of the vital needs is management. You can have all the finance that you can obtain, you can have the finest scheme in the world, and if you have not good management you just lose your money. It seems to me a very simple proposition; it is the very A.B.C. of business; but in my experience it is practically impossible to drive that into the heads of people who are often dealing with questions of this kind. The great weakness of funds such as the World Bank is that they have no management techniques, and I was glad to hear the noble Marquess say that the World Bank are setting up a corps of advisers or specialists. Provided these people have experience themselves of management, that is all very well; but if they are to come along and blow in and blow out again, and give a lot of advice which may or may not be useful, it will not be much help. What is needed is people who know how to manage a mill, factory, farm, plantation or whatever it may be; and, believe me, such people are very difficult to get. Further you need pilot schemes, and nucleus plantations with adjacent smallholdings.

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There are just one or two questions I should like to ask the noble Marquess. I was going to ask him myself about the International Development Association to which the noble Earl, Lord Listowel, referred, because there is nothing in the Bill about it and I am not sure what its status is under this Bill. When the Bill came before us, we were told, or at any rate it transpired later, that the Association had authorised capital of one billion dollars. This capital was to be subscribed by member Governments in two groups, the United States to subscribe 320·3 million dollars and the United Kingdom 131·14 million dollars. Perhaps the noble Marquess would enlighten us to-day as to how much of the United Kingdom subscription under that Bill has been made and what is the situation with regard to it.
The difference between the I.D.A. and the World Bank is a very important one. Your Lordships will remember that I said that one of the difficulties of the World Bank was that repayments had to be made in the currency of the lender. But the I.D.A. repayments can be made in the currency of the borrower. That is a very important distinction indeed. Also the actual interest rates are not so high. I should like to know from the noble Marquess, if he would be good enough to tell us, whether the International Development Association comes within the scope of this Bill. The noble Marquess says it does not. That is rather a pity. However, perhaps another Bill will come forward at some time. If what the noble Earl, Lord Listowel, says is true, the Association have completely spent their allocation, and it may be necessary for us to give them more money.
The other point is this. We are going into the East African Commission with one independent country and at the moment two Protectorates, or one Protectorate and one Colony. After October 9, we shall be guaranteeing two independent countries and one Crown Colony. Is Tanganyika already a member of the World Bank? Would the noble Marquess answer that? And is there any guarantee from Tanganyika also with reference to any loans that may be made to the East African Common Services Organisation? The second
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question I should like to ask is in regard to the New Hebrides; this is a condominium, as your Lordships know, the only one left, I think, in which we share responsibility of administration with France. France is a member of the World Bank. Will France also be giving a guarantee to the World Bank for any loans that may be made to the New Hebrides?
There is one final observation I would make on the Bill, because it must be remembered that we, the British Government, the British taxpayer, will be responsible, during the whole term of the loans—it may be for 20 years; it may be for any period—for the repayment of these loans, and therefore it is essential for us to ensure that the economic situation in these borrower countries is sound and that the political situation is stable; if it is not, they cannot service the loans. Unhappily, one of the aspects of independence is the fact that so often the European civil servants who have had great experience in the territories leave just before, just about or just after independence; in other words, when the country needs them most there is an exodus of skilled administrators, technicians and professional men from the particular territory concerned.
This, to my mind, is largely caused by the extreme folly of the arrangements which are made with regard to these men. What happens is that the British Government at this particular moment offer them tremendous inducements, bribes, bonuses and what you will to leave the country; so naturally—who can blame them?—those men take the inducements and go. So we have a large number of men and some women in the prime of life coming back to this country and elsewhere, leaving the countries in which their services are so valuable, going elsewhere, seeking jobs elsewhere, and, if they wish, living on the money they have received. To my mind this is almost incredible. Who on earth in his senses would at the very moment of independence pay large sums to the people who are so necessary to the country, to leave it? One would think that large sums would be paid to them to stay in it. But no; the sums are paid to leave it. This has caused, is causing and will cause tremendous

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difficulties in all these countries which are becoming independent and in which we shall retain very great interests, both economic and otherwise.
Of course the reason is, strange and incredible as it may seem (this is the real reason), that the Home Civil Service will not have them because in many cases they have not second-class Honours degrees. We imperil the future of these countries (because wall-tried and able civil servants in many oases have no second-class Honours degree. It seems farcical, but that is the position. They should be incorporated in the Home Civil Service. They could then stay on in those countries, and they would know their future was assured and their pension rights sustained. There would be no difficulty about their future at all. If any of them wanted to come here, well, we have plenty of places in this country where their experience would be most valuable, particularly in the Highlands of Scotland and the rural parts of Wales—not only in the Highlands of Scotland but in industrial pants as well. Their colonial experience would be most valuable in those areas, because at the present moment they are rapidly becoming derelict. The experience that these men have had in sustaining and developing the resources of Africa, of the Far East, and of the Caribbean would be most valuable in developing the resources of our derelict areas in this country.
Therefore, I say, and I ask the Government—I would beg them—in considering the whole question of guarantees, even at this late stage to look into the problem of the Oversea Civil Service, to see whether the absurd regulations which now apply to them could not be amended so that the services of these men and women which are so badly needed in these territories overseas may be retained in the future.
4.1 p.m.
THE MARQUESS OF LANSDOWNE: My Lords, I am glad that this Bill has received such a wholehearted welcome from the two noble Lords who have been good enough to speak. I will try to answer the questions that have been put to me. First, I think I should point out to the noble Earl, Lord Listowel, that the Bill deals only with guaranteeing loans from the International Bank, and
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has, in fact, nothing whatsoever to do with the I.D.A. But as the noble Earl was good enough to tell me that he wished to speak about the I.D.A. I will try to help him, although I am not certain that I can answer all his questions. The noble Lord, Lord Ogmore, also referred to the I.D.A.
So far as the three countries Tanganyika, Uganda and Kenya are concerned, I hope that there is no confusion here. As I said in my opening remarks, this Bill takes care of the situation until all three countries become independent. The noble Lord, Lord Ogmore, asked me whether Tanganyika is a member of the International Bank. Tanganyika is not yet a member but has applied to become a member of the International Monetary Fund, the International Bank and the I.D.A., and we hope that shortly she will be admitted.
So far as the overall financial position of the I.D.A. is concerned, it is in fact outside the scope of what we are discussing this afternoon, but, as the noble Earl raised the question, the answer, as I understand it, is that on June 30 of this year the I.D.A. had in fact committed 235 million dollars—these are the figures that I have been given: I will check them but I think they are correct—out of the 1.000 million dollars. I think that is the position at the moment. The noble Earl will remember what our contribution was: it was £47 million. I understand that the full amount of this has not yet in fact been drawn down. The question of our making greater use of the I.D.A. was referred to. So far Swaziland has received help, as I think the noble Earl is aware. There are a number of other projects which may be suitable for help from the I.D.A. which are now under consideration.
If the noble Earl wants an overall review of the state of the finances of the I.D.A. I think he must allow me to write to him about it. He will remember that my right honourable friend the Chancellor of the Exchequer at the last annual meeting of the International Bank gave an assurance or, rather, said that he hoped that the United Kingdom when the time came would be able to play its part in making further contributions. It is, of course, also our hope

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that the Governments of France and Germany would play their full part. I think the noble Earl alluded to that himself. I hope I have dealt with the principal points that the noble Earl raised, although in fact they are outside the scope of what we are discussing this afternoon.
I feel I must say just one thing on the question of bilateral aid. I do not want to make a mountain out of this, but I had for three years the privilege of leading the British delegation to the Colombo Plan. I cannot quite agree with the noble Earl that bilateral aid is always suspect and considered to have some sort of political implications. I did not find that from personal experience in the Colombo Plan.
We do not guarantee the loans made to independent countries. I think that is perfectly clear. The only reason why the amendment in Clause 1 (2) has been made is because we are dealing with three countries in different stages of constitutional development who share a common services organisation. That is the reason why this small adjustment has, been made. The noble Lord, Lord Ogmore asked a question about the New Hebrides. If there were any question of a loan being given to the New Hebrides, as I think I said in my opening remarks we should act in cooperation and in consultation with the French; so that would be something which would be done together, between us.
I was glad that the noble Lord, Lord Ogmore, referred to the expansion of the services of the World Bank when dealing with the question of management. I have every reason to believe that the experts I referred to are men of the highest standing who will not just go in and come out. They will be able to stay in the country concerned for long periods and to give really helpful advice. I believe this to be a most important development.
I will certainly take note of what the noble Lord, Lord Ogmore, said, about our Oversea Civil Service, the guaranteeing of pensions and so on, but I am afraid I cannot extend the scope of this debate this afternoon to go into that matter in detail. I assure him that I will take note of the point. I do not think there
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were any other points of substance that were raised. Therefore, it only remains for me to commend this Bill for Second Reading.
On Question, Bill read 2a; Committee negatived.

LOCAL AUTHORITIES (HISTORIC BUILDINGS) BILL
4.7 p.m.
Order of the Day read for the Bill to be considered on Report.
THE DUKE OF ATHOLL: My Lords, I beg to move that this Report be now received. Before this Question is formally put, I should like to say a few words relating to the question of parish councils which we discussed on the Committee stage. My noble friend Lord Colville of Culross, who told me that he will not, unfortunately, be able to be here to-day, put down an Amendment on the Committee stage that this Bill should be extended to parish councils. When I asked your Lordships to reject this Amendment the noble Lord, Lord Morrison of Lambeth, suggested that while he saw fully the force of my argument for rejecting that particular Amendment, it might be useful to have written into the Bill that parish councils had the right to be consulted about which buildings should or should not receive grants. I promised to look into this question, and I have done so. On due reflection I came to the conclusion that it would be unwise to put any such provision into this Bill, for the following reasons.
Under the Town and Country Planning Act, 1947, the parish councils can, and frequently do, make representations to larger local authorities about the historic buildings in their particular parishes. The consultation might have been written in in another way: that it should be compulsory for the district or county council to consult with the parish council before it gives a grant. This would have led to an intolerable delay, because although some parish councils are most active, and although by Statute every parish council in the country is supposed to meet quarterly, even If this Statute is observed (and there are certain reasons for thinking that some parish councils do not

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observe it), there could very frequently be a rather long delay before the district council or county council would be able to give the grant.
Thirdly, my Lords, applicants for grants or loans will be asked to give fairly confidential information about the state of the building for which they want the grant, and about their own finances. And whereas one is probably prepared to give this sort of information to a fairly large and remote body, I think that quite a few people would find it objectionable to give it to their nearest neighbours who are, on the whole, the members of their parish councils. Fourthly, some local authorities, somewhat anticipating your Lordships' pleasure on this Bill, have already agreed, I understand, to give grants in certain cases and it would cause them great difficulty if the Bill was unduly delayed. I hope that your Lordships will feel that it would be undesirable to jeopardise the passage of this Bill by such a dubious advantage as any mention of "consultation with parish councils" would be. Therefore, I trust that you will agree to the Motion that this Report be now received, which I have pleasure in moving.
Moved, That the Report be now received.—(The Duke of Atholl.)
On Question, Motion agreed to.

DRAINAGE RATES BILL
House in Committee (according to Order).
House resumed: Bill reported without amendment; Report received.

LOTTERIES AND GAMING BILL
4.13 p.m.
Order of the Day for the House to be put into Committee read.
Moved, That the House do now resolve itself into Committee.—(Viscount Goschen.)
On Question, Motion agreed to.
House in Committee accordingly.
[The LORD MERTHYR in the Chair.]
Clause 1 [Interpretation of references to private gain]:
VISCOUNT GOSCHEN VISCOUNT GOSCHEN moved, in subsection (3), to leave out "charge for"
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and insert "maintenance or other charge in respect of". The noble Lord said: With the permission of the Committee, I will speak on the first four of my Amendments to Clause 11 (3), as they all deal with the same subject; that is to say, the hiring agreements on gaming machines. Your Lordships may remember that on Second Reading I explained that the purpose of the clause was to prevent the lessor of a gaming machine from getting a "cut" or percentage of the takings of any such machine, but to allow a fixed rental to be paid to him. On further consideration of this clause, it was thought that there still might be a loophole, in the way of a maintenance charge which might be fixed, dependent upon the takings of the machine.
This first Amendment, therefore, extends the prohibition to a "hiring maintenance or other charge". The second Amendment is consequential upon the first. Again, it may be considered that, as it stands, this subsection might still permit a charge, in that it depended in some way on the amount of use to which a gaming machine was put. For example, it might be fixed upon the number of times the arm of a "one-armed bandit" was pulled down. That is one of the ways in which the lessor might obtain private gain. The third Amendment remedies that possibility. The fourth Amendment is consequential upon the first. I trust that I have made it plain that the purpose of these four Amendments is to put it beyond doubt that no charge may be made for a gaming machine or other equipment which depends in any way whatsoever upon how frequently the machine or equipment is used. I beg to move.
Amendment moved—
Page 2, line 3, leave out ("charge for") and insert the said new words.—(Viscount Goschen.)
On Question, Amendment agreed to.
VISCOUNT GOSCHEN: I beg to move the second Amendment.
Amendment moved—
Page 2, line 5, leave out first ("for") and insert ("in respect of")—(Viscount Goschen.)
On Question, Amendment agreed to.
VISCOUNT GOSCHEN: I beg to move the third Amendment.
Amendment moved—
Page 2, line 8, leave out from first ("to") to ("that") in line 10 and insert ("the extent to which that or some other such machine or equipment is used for the purposes of lotteries or gaming").—(Viscount Goschen.)
On Question, Amendment agreed to.
VISCOUNT GOSCHEN: I beg to move.
Amendment moved—
Page 2, line 14, leave out ("hiring").—(Viscount Goschen.)
On Question, Amendment agreed to.
Clause 1, as amended, agreed to.
VISCOUNT GOSCHEN VISCOUNT GOSCHEN moved, after Clause 1, to insert the following new clause:
Payments at entertainments not held for private gain
. In sub-paragraph (ii) of paragraph (b) of section twenty of the Betting and Gaming Act, 1960 (which provides that, in relation to gaming to which that section applies, section sixteen of that Act shall have effect as if for the condition set out in paragraph (c) of subsection (1) thereof there were substituted the conditions set out in subsection (1) of section four of the Small Lotteries and Gaming Act, 1956) for the words "the condition set out in paragraph (c)" there shall be substituted the words "the conditions set out in paragraphs (6) and (c)".
The noble Lord said: Section 20 of the Betting and Gaming Act, 1960, is a technical provision intended to ensure that entertainment conducted in accordance with the conditions laid down in Section 4 of the Small Lotteries and Gaming Act, 1956 (this is what is often called "a small gaming party"), should be excepted from those provisions of the 1960 Act which would otherwise render it unlawful. Briefly, the conditions with which the small gaming party must comply are as follows. One, not more than one payment—and that not exceeding 5s.—may be made in respect of all games played. Two, there must not be more than one distribution of prizes in respect of all games played, and the total value must not exceed £20. Three, the amount appropriated for expenses must not exceed the reasonable cost of the facilities provided. Four, the proceeds, after deduction for sums of expenses and provision of prizes, must be applied for purposes other than private gain.
Section 16 of the Betting and Gaming Act, 1960, contains some general rules
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which are applicable to all gaming, and the intention of Section 20 was to exempt the small gaming party from any of those rules which is inconsistent with the conditions which have already been laid down in the 1956 Act. I received a letter which pointed out to me that there was a mistake in Section 20 of the 1960 Act and, following consultations with my noble friend Lord Bathurst, it was thought that this was in fact the case. I will be as brief as I can. There are three general rules for gaming set out in Section 16 (1) of the 1960 Act, and, in simplified form, they are these. First, the game must be fair; secondly, all stake money must be paid to the winners and none must be kept by the organiser; and, thirdly, there must be no other charge—for instance, a charge to enter. In a small gaming party a single charge, not exceeding five shillings, is allowed, not all of which is returned to the winners.
The whole point of a small gaming party is to raise money for some purpose other than private gain. For example, your Lordships will remember that on Second Reading I referred to the funds of a club. So a small gaming party does infringe the second and third rules which are set down in Section 16 (1) of the 1960 Act, and Section 20 of that Act ought to except it from both these rules. In fact, it was found that it excepts it from only the third. The purpose of this new clause is to put this matter right. This new clause is to correct an error. Again, it does not open up any new methods of gaming. It is consistent with the whole purpose of the Bill, which is to make it possible for a club to organise small gaming parties, among other things, for the benefit of the club. I beg to move.
Amendment moved—
After Clause 1, insert the said new clause.—(Viscount Goschen.)
On Question, Amendment agreed to.
Clause 2 agreed to.
VISCOUNT GOSCHEN: The Amendment to the Long Title to, the Bill is consequential upon the new clause which your Lordships have just passed. I beg to move.
Amendment moved—
At end add ("and to exclude the operation of paragraph (b) of subsection (1) of section

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sixteen of the Betting and Gaming Act, 1960, in relation to gaming to which section twenty of that Act applies.").—(Viscount Goschen.)
On Question, Amendment agreed to. Title, as amended, agreed to.
House resumed.

NATIONAL PRODUCTIVITY YEAR
4.24 p.m.
LORD CROOK LORD CROOK rose to call attention to the plans for National Productivity Year; and to move for Papers. The noble Lord said: My Lords, in moving the Motion which stands in my name on the Order Paper this afternoon, I would declare that the objective is to secure the interest of your Lordships and, through your Lordships, of others outside in the National Productivity Year which is to be launched in London on November 14, in Scotland on November 16 and in Wales on November 21. The campaign has been initiated by the British Productivity Council, which your Lordships will know is a non-political body supported alike by employers in industry and by the trade unions; and, indeed, the trade union movement has supplied this year's chairman. I am gratified, as I am sure the British Productivity Council will be, that some of the distinguished leaders of industry who sit on the Benches in front of me will be supporting this Motion this afternoon, and that, when they return from a meeting in another place, some of my colleagues, including a distinguished past chairman and a distinguished past general secretary of the Trades Union Congress will be supporting from this side of the House.
The twelve months campaign, my Lords, has been designed to enlist every interested organisation, whether employer, professional, management or trade union, in an effort to raise the standard of industrial efficiency, especially where that standard is below the average. The objects of the Year, which have been set out in detail and are six in number, are briefly these: first, to strengthen the determination of all organisations concerned with industry to take an active part in improving the country's efficiency and in maintaining its place among the leading industrial nations of the world; secondly, to foster
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a more favourable climate of opinion to better methods and their proper use; thirdly, to bring clearly before everyone the nature and value of services that exist to help him; fourthly, to promote discussion and research into the needs of industry; fifthly, to encourage mutually agreed co-ordination among bodies, to secure an even more concentrated and purposeful contribution to the problems of industry; and, finally, to bring into being a means of regular consultation and discussion, which will continue after the Productivity Year is over. A large part of the effort, of course, will be to make known information which is already available to help management, with the co-operation of the unions, to do a better job.
The unions are joining in, of course, not only in the interests of the country, but because they know that where inefficiency prevails the workers often pay for it in the form of insecurity in their jobs, poor pay or inefficient working conditions. In other words, the greater industrial efficiency which the greater industrial organisations have aimed at all along is seen by unions as a way of providing a basis for higher standards of living. They know that efficiency on the production line and the skilful use of scientific research will not automatically lead to the achievement of trade union objectives, but it is equally true that they know that, inevitably, they come into the reckoning at some stage. So the unions and the employers are together in the work of the British Productivity Council which, through its 120 local committees, keeps industry informed of a widening range of management and production techniques and looks at questions of practical relevance, whether quality control or low cost automation, ranging not only over the large manufacturing industries but also over agriculture, office work, and retail distribution.
My Lords, the problem of the Common Market and the work of the National Economic Development Council clearly come into this picture. As to the Common Market, I am content to say that any view on productivity which I express here to-day remains as true whether or not we eventually go into the Common Market. As to the N.E.D.C., again I am content to record that they recently set British industry

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a tentative average gross target of 4 per cent. a year for the period between 1966 and 1970. That was in line with the 4T per cant, gross figure put forward by the O.E.C.D. for the ten years 1960 to 1970. That is a growth which involves an average increase in productivity of 3·3 per cent. per annum and we, who in the fifties had an increase of only about 2 per cent. a year, have a very large target ahead of us, because industry roust budget for an increase of something like 4 per cent. in the latter half of the ten-year period if we are to achieve the objective.
With an annual increase in the manpower, the working population, of this country of only about one-half of one per cent.—and that, I believe, is expected to slow down—clearly our economic growth will depend mainly on increased output from each worker. Now the output per worker in this country, as all your Lordships will know, has gone up since the last war by an increasingly significant amount compared with the position between the two wars. But as the Treasury's June Bulletin for Industry points out, other industrial countries have generally attained a faster growth than ours; and when the Minister speaks for the Government later in this debate I shall not be surprised if he tells us that we have to increase our exports by 10 per cent. to secure even our present economic status. That belief I base on the recent statement of the Minister of State, Board of Trade, who has told us that to-day we are selling £10 million worth of goods by export each day, and that we need to sell £11 million to feel reasonably secure on our economic front.
Your Lordships do not need me to remind you that our exports depend on a number of factors: raw material resources, design, quality, reliability, credit facilities and salesmanship will occur to the minds of all of us immediately. But I want to talk about something else on which productivity depends, because it depends, in addition, on human beings—the abilities and skills of human beings, and their relationships with each other. As to these human beings, the excellent report of the Ministry of Labour Working Party on the manpower situation, which was presented to the National Joint Advisory Council in January and
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which many of your Lordships will have read, put forward a broad general conclusion that our manpower resources are limited and that they are likely to remain so, and that therefore it is vital that the best possible use should be made of the available resources if we are to maintain an expanding and competitive economy.
To me, a basic prerequisite is clearly the right degree of skill in all sections of the labour force, whether operatives, craftsmen, supervisors or managers; and adequate training and proper selection at all those levels is of great importance. It is too often suggested that the responsibility for training rests on the Government. Of course, in part it does, just as it depends upon the educational system; but to a large extent the job is one for industry itself. Not, of course, my Lords, that it is good enough for the labour force merely to be highly trained: confidence and harmonious relationships within firms are just as essential to secure full efficiency and increasing productivity. Strikes, which are really a sign of a breakdown in relationships, obviously mean a standstill in production; but lack of confidence between management and workers, even if it does not result in strikes, may make it impossible for management to introduce those changes in methods of production which are necessary for the economic growth of the firm or the factory.
May I therefore venture to detain your Lordships for a few minutes by offering some observations on the factors which may, we hope, have attention during this Productivity Year? They are commonplace things to the leaders of industry sitting in front of me, and probably to most of your Lordships, but they are not thought of by far too many outside, to whom we want to reach out and whom we want to cause to think. Your Lordships would probably agree that a feature of post-war industry has been the differing performance in terms of growth, activity and relationships, not only between different industries but (and perhaps this is even more important) between different firms within a given industry. There is no simple explanation for this. Many theories have been put forward, and more can be put forward; but it is arguable (and this, at least, I suggest to your Lordships, is supported by some studies in this field) that a

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major factor making for success, whether we are talking on an industry or on a firm basis, is the forward-looking approach of management to all its problems—and that applies in the field of relationships just as much as it does in matters of marketing, finance and technology.
I suggest to your Lordships that in far too many of the smaller firms, in particular, solutions to problems of relationships are sought on a basis of improvisation or expediency. The long-term effects of managerial decisions are ignored. Not only is a considered personnel and employment policy, which is a guide to management action, essential both to good relationships and to production efficiency: I suggest it is also essential that such a policy should be taken into account in relation to other managerial policies and decisions. For instance, I suggest that the managerial policy on the recruitment of labour is of paramount importance. High labour turnover arising from poor recruitment and selection can adversely affect productivity. I am sorry to say that relatively few firms of the type to which I refer even bother to calculate their labour turnover rate. When a vacancy occurs, the thought is: "Well, let us get another one like Bill", and insufficient attention is paid to matching the requirements of the job with the attainments and the aptitude of the applicant.
I think that what we have to try to put over during this Productivity Year is that the recruitment of the wrong fellow will not only reduce productivity and cause worry and dissatisfaction to the individual himself when he realises that he is unable to do his job efficiently, but that this worry and dissatisfaction can, and probably will, be infectious and will affect the morale of all his fellow workers. If proper selection procedure had been operated, such a man would have been rejected for this particular work, and might well have been placed satisfactorily in another job. Equally, productivity suffers, I suggest, if the newcomer is not quickly assimilated into the firm. Many of your Lordships with industrial experience will know how many things can be done to that end. A short induction course, an informal welcoming interview, a short talk on various aspects of the firm's work, and so on, can all be given, even
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in the first few weeks, in the smallest of firms and organisations.
Another subject which I am encouraged to mention is work study, if only because during our debate on the Navy Estimates yesterday the noble Lord, Lord Carrington, made some mention of it in respect of the Navy. This is another means of increasing productivity. I suggest that the highest productivity is what the people could do, if they liked, during that part of their lives which they should like to spend at work. That means that work study must induce willingness on the part of the worker. As well as the technical factors of time and motion, work study must take into consideration the factors which affect people's thinking and their feelings. The intangible satisfactions and dissatisfactions of doing the job are, I suggest to your Lordships, just as important as the pay packet at the end of the week, and recognition of this fact may well be vital. Skilled work study will take into consideration all the factors which motivate the human attitude to a particular piece of work, and by eliminating the stresses and strains, whether they are physical or whether they are emotional, create a climate conducive to highest productivity.
There is also, of course, the problem of communications and consultation within industry, about which I have ventured to speak to your Lordships on a number of occasions in the past, although in a rather different context from to-day's. What I ventured to say previously was that the scale and complexity of modern industry make it more important than ever that management should be able to get its decisions down rapidly and clearly right to the shop floor. It is equally necessary that management should be in touch with the problems and the attitudes of their employees, so that the decisions they take are informed and fully considered.
These, I think, are the essential problems of communications. They are particularly important, of course, in industries like the motor industry, where production is constantly altered to meet changes in demand. Communications vitally affect relations between management and workers. Strikes, I suggest, after all these years, are often caused not by a real conflict of interest between

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management and workers, but by a lack of understanding of the facts. It may be a lack of appreciation of the facts on the part of the workers as to what management policy is, or it may be a lack of knowledge on the part of management of employees likely reactions to proposals that they are going to make. Many needless misunderstandings could, I think, be avoided if management consulted workers in advance on matters which affected their interest. Most of our industries, of course, as all your Lordships know, have longstanding machinery for joint consultation, and I am convinced that, if used properly, this can make a valuable contribution to good industrial relations and to productivity.
Another subject which I and some of my colleagues on this side of the House have ventured to raise with your Lordships, in debates in different contexts, has been that of security of employment. A growing economy requires that some industries Shall expand, that others shall contract, and, consequently, workers have to change their jobs. It is natural that workers should place increasing emphasis on security of employment. Fear, which may frequently be groundless, of working onself out of a job can lead to various consequences of a serious kind for productivity, whereas well-planned and equitable redundancy arrangements can assist materially to reconcile the clash between the desire for security and necessary economic change.
A very informative article on this subject, which I imagine a number of your Lordships who are interested in these matters will have read, appeared in the Sunday Times last week, entitled "Taking Fear out of the Factory". It was written by the President of the Institution of Engineers and Ship Builders in Scotland, who wrote from 25 years' experience of his life there. I do not necessarily agree with all his views, or with all that he said, but I venture to quote to your Lordships some words written by a man who has had a great deal of experience. He said:
"… the vital problem of productivity which is at the root of the country's economic problems, is psychological. … The fear of unemployment, redundancy, and insecurity, are still the most dominant obsessions of the wor-
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king man. … Consequently, with profitability in the guise of a vampire, with no contract of employment, and no legislation to control his benefits in event of redundancy, the average worker cannot be expected to do other than fear the impersonal forces which create economic instability".
I think that those are very useful words to read to your Lordships, without unduly placing reliance on them, or without necessarily expressing complete agreement with everything that the writer says. Because I am sure that if more employers would give some thought to these redundancy arrangements—for instance, if they would only bother to get books which are produced by the Government for them: books like Security and Change, published last year by the Ministry of Labour, and its companion booklet, Positive Employment Policy—they would at least be seeking some help for themselves in the job of work which they have to do, and which they ought to know that they must do.
My Lords, may I take one look at management training? In the past, most firms looked to their apprenticeship schemes to provide their managers; but the changed educational system has made this increasingly difficult to-day, when so many of the brightest boys go to universities. At the same time, the scientific and technological developments are such that the industrial manager must be appropriately qualified. This means that firms are recruiting their future managers from universities and colleges of advanced technology, rather than from within the firm. These men are highly competent in their particular scientific discipline, but they need to be given training and experience in the effective co-ordination and motivation of others who will serve under them; that is, in the practice of management. The productivity of the shop-floor worker is, of course, dependent upon the proper organisation of men, materials and machines. Future managers need an understanding of production management, and particularly of the factors which affect people's will to work.
It is little use training managers, however, if you do not train the man who, in these days of large scale industry, is regarded as the "boss" by the man who meets him on the floor. And to most men the "boss" is the foreman. It is the foreman who has to interpret the

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management's decisions to the workers on the shop floor, and who has to make sure that they are carried out. So that it is his efficiency which has a material effect on the quantity, quality and costs of production. His manner, his behaviour and his treatment of the men are of vital and paramount importance in industry. However good the intentions of the management, they can, be completely frustrated if the foreman "boss" has not the good leadership to give on the floor.
I am sure your Lordships were as disturbed as I was to read the Report of the Ministry of Labour Committee on the Selection and Training of Supervisors, which found that the majority of firms still do not systematically train their foremen. Indeed, the Committee concluded its findings in this way:
"There is an urgent need for more and better training of supervisors in the interests of greater efficiency and improved relationships between managements and employees."
In fact, my Lords, sound arrangements for training are an essential feature of any scheme which is going to improve industrial efficiency and (productivity. Good training ensures that operations are carried out without waste of time and materials, and that the goods produced are of a high standard. What is more, I suggest to your Lordships, it enables industries to profit swiftly from technological developments and to create an adaptable and occupationally mobile labour force. May I be forgiven if I say that sometimes I feel that there should be some training for some employers in this country? They should earn how to plan their businesses and their approach to customers.
I have no doubt that the great leaders of industry who sit on the Benches opposite may well have been as concerned as I was to read the Report of the National Convention of the Export Council last November, where the export effort of industries ranging from heavy engineering to consumer goods was under discussion. In the course of this conference it became increasingly clear to everybody that many opportunities for the sale of British goods were not fully exploited because of the lack of knowledge of the European markets, the inadequacy of the sales techniques used by British firms, and the insufficient attention given by them to the patterns
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of demand in those countries. I am bound to add, however, that it was often found that in matters of price and delivery dates British manufacturers were as competitive as any on the Continent. It was their relative lack of success in Europe, due to their failure to use the right kind of approach, which worried the conference.
LORD McCORQUODALE OF NEWTON: My Lords, I should not like the noble Lord's interesting speech to be misrepresented outside in any way. Of course, we can do better on the Continent, but the record over recent months of British industries and their exports is quite remarkable.
LORD CROOK: My Lords, I should be the first to accept that. I do not for one moment want it to be thought that I am decrying anything. When one is trying to help towards greater production, one does not want to decry the great efforts made on both sides of industry and I am very glad that the noble Lord reminded me. I am sure that many of your Lordships saw the account in the Press, in the last week or two, of the executive on one of the stands at the Stockholm Conference who saw three persons, whom he knew to be three big buyers from a foreign country, looking with great interest at the products on his stand. He went down to them and said, "If one of you can speak English, perhaps I can help you". I think that the noble Lord to whom I just gave way will understand this, because of his interest in his own organisation.
I was glad to see the good report which the Federation of British Industries presented as the result of the working party, which must have been at work months before the exhibition in question. I thought that the Daily Telegraph, in an editorial last week, summed up that report rather well, much better than I could. I doubt whether I should have liked to say in your Lordships' House what they put as their title—"Insolent Insularity." They go on to say:
"There is nothing at all funny about the findings of a working party set up by the Federation of British Industries to investigate Foreign Languages in Industry . It seems that 40 per cent. of the British firms dealing with companies in non-English speaking countries have no one on their staff qualified to write or to speak in the language of their foreign correspondents."

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That is the kind of difficulty we are facing. We all know that the great firms, which are represented, if I may use the phrase, by noble Lords who are to speak later on in the debate, do not suffer from this kind of problem. What we have to try to do is to get those other firms, who think that everybody must follow on where they begin, to take some interest in the job of work they have to do.
We were overtaken by the United States in production in 1885—we do not have to worry about admitting that; and Sweden overtook us in 1940. What we have to do, whether we go into the Common Market or not, is to see that France, Germany, Italy, Holland and Belgium, who are close behind us, do not overtake us in the next few years. That is the kind of background which calls for the launching of this National Productivity Year and which justifies my asking your Lordships to express agreement with this Motion. I do not think that the first five objects of the National Productivity Year will be of any use unless the sixth is made completely effective; because the sixth is the one that will allow for the continuance of effort in the years beyond, and for that permanent increase in productivity of which you and I know this nation to be capable.
My Lords, I should like to end, if I may, by quoting words that are better than my own; the first and last paragraphs of the letter from the National Productivity Year's Patron, His Royal Highness the Duke of Edinburgh, who says:
"No amount of economic juggling can alter the fact that in the long run our solvency depends upon the efficiency of our industries and upon our national productivity."
His Royal Highness ends by saying:
"The whole nation stands to gain from the success of this venture particularly if it can inspire a spirit of co-operation and joint endeavour which alone can help this country to overcome the challenge of the future."
I beg to move for Papers.
4.57 p.m.
LORD MCCORQUODALE OF NEWTON: My Lords, I am sure that all your Lordships will agree with me that we are very much indebted to the noble Lord, Lord Crook, for his initiative in bringing forward this Motion on the
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National Productivity Year and on what I might describe as the courageous and exciting programme which the British Productivity Council have formulated for this year, which is planned to start in November. I would say to the noble Lord, if I may—and I hope he will forgive me—that two or three times in the course of his most interesting and effective speech, with which I cordially agreed, he took the opportunity of mentioning leaders of industry sitting "on the Benches opposite". I would suggest to him that leaders of industry are sitting on the Benches around him just as much as on the Benches on this side of the House, because the leaders of industry are not only employers, although there are some distinguished employers, including the noble Lord himself, sitting on the Benches opposite but also the leaders of the trade union movement.
The Chairman of the National Productivity Council has described this Year, this Opportunity Year, this National Productivity Year, as the biggest cooperative effort ever made by British industry in peacetime. That is a big claim, but I hope and believe that at the end of the year we shall be able to justify it in reality. I am sure that all of us, especially those actively engaged in industry, are glad to see that it is industry itself which is running this campaign; it is not something foisted on us from outside. It is industry, by and large—industry, commerce, agriculture, employers and trade unions—all those engaged in productive effort in the country, who are organising this Year.
The noble Lord, Lord Crook, finished his speech by reading two sentences from the admirable letter with which His Royal Highness the Duke of Edinburgh has prefaced the booklet which has been put out by the British Productivity Council on National Productivity Year. I wonder whether I may quote one more sentence to your Lordships—the second—in order to whet your appetite for getting this booklet from the Printed Paper Office outside. His Royal Highness says:
"In order to maintain, let alone improve, our standard of living we have got to export our manufactured goods in the face of very tough competition from other highly industrialised and industrious countries. We can only compete with success if we can maintain a high

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standard of efficiency and productivity. The only alternative is lower wages and salaries, and no one in their senses wants that to happen."
I think that is very true.
I do not wish to keep your Lordships too long, but I should like to say a word or two about the constitution of the British Productivity Council itself. I had the privilege some years ago to be its Chairman, nominated by the employers organisations. My vice-chairman at the time was that very distinguished trade union leader, Mr. Lewis Wright, from the textile world; and he succeeded me the following year as Chairman. If J may, in this House, I should like to express my warm appreciation to him for the great help he was to me at that time. For the British Productivity Council is a joint organisation in every sense of the word, to which, as the noble Lord, Lord Crook, has said, both employers and trade union organisations belong. I might add that they both pay substantial subscriptions to the Council, and I am glad to say that, so far as the employers are concerned, they go through without criticism at our annual meetings.
At the present time Mr. Harry Douglass is the very distinguished Chairman—and I suppose there is no better known or more highly regarded name in the trade union movement to-day than Harry Douglass. The vice-chairman is a colleague of ours in this House, the noble Lord, Lord Netherthorpe, known throughout the whole agricultural world as an intimate friend of industry and of agriculture, who will be representing the employers interests. Thus, we have the creation of this Productivity Year or a start being made under the chairmanship of a distinguished trade union leader and the final execution carried out under the vice-chairmanship of a well-respected member of the employers' organisations.
The British Productivity Council functions mainly through no fewer than 120 local joint committees of employers and trade unionists throughout the country. It is in collaboration with these most excellent local committees, whose work we cannot praise too highly, that there have been set up local National Productivity Year committees, again, of course, with joint membership from the employers and the trade unions. It is remarkable to think that
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over 100 of these special local National Productivity Year committees have been set up throughout the country in the last few months. It is only two or three months since the movement started; and that we have over 100 going already is a highly meritorious success and one which shows the enthusiasm of those who are conducting this campaign.
It is, I gather, the intention of these committees that, aided by the support of the central council, they should carry out practical activities in their areas to encourage a quicker appreciation by all in industry of the benefits of advanced techniques of productivity and the advantage to be gained by all in industry from the application of these techniques. The scope of these National Productivity Year committees will be widened by the enrolment on the committees of many experts on these matters of industrial techniques.
I think I should say that many other organisations are also supporting and participating in this Year. No fewer than 116 bodies connected with industry in one way or another have promised their support. This support is particularly important, because it brings together for the first time in our work in the productivity world all those services and professional skills on which industry relies, and it widens the impact of the local committees, which were in existence as local committtees of the Productivity Council before the project was initiated but will now be widened by the inclusion of these experts.
It is certainly not the intention of the British Productivity Council, as the parent body, or of any of the local committees, or, I believe, of anybody associated with this campaign, in any way to denigrate the massive achievements of British industry in general. That is why I am sure the noble Lord, Lord Crook, did not mind my intervention. A great number of firms in this country have an efficiency second to none in the world. There is no doubt that our skilled operatives still maintain that superiority which is the envy of so many. The main object of the Year, as is the main object of the British Productivity Council's general work throughout the country, is to make the methods which have proved so successful in these industries available to all the rest.

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Publications of the British Productivity Council's Target and the National Productivity Year's Bulletin that are being issued month by month as the Year develops are full of such references and reports from industry; and we hope that in the National Productivity Year many more firms will be encouraged to display their own techniques and methods to their fellows in the country.
The noble Lord, Lord Crook, has talked much, and very wisely, this afternoon of industrial relations, and I would heartily endorse what he says. Just as industry is constantly changing to meet changing demands and opportunities, so must we be ready in industry to adapt and modernise our industrial relations; not to stick to old attitudes and old methods, but to establish and maintain as fully as we can a feeling of confidence in those engaged on the shop floor, in each other and in the management; and for both management and leaders of the operatives to endeavour to understand each other's difficulties and problems. I am not going to follow the noble Lord, Lord Crook, into his extremely interesting analysis of the problems. There is much room for further study of industrial relations. One problem before the country at the present time is why most disturbances in the form of unofficial strikes appear to happen in industries with a very high level of earnings. But there are many other problems that I do not wish to pursue this afternoon. I would, however, say this: that I believe most profoundly—and I am sure the noble Lord, Lord Citrine, and others will agree with me—that man management is the most important function of top management in industry in this country.
If I might keep your Lordships fox two or three minutes more, I should like to mention briefly the object, as I see it, of the whole campaign, which is the improvement, and continued improvement year by year, of our industrial productivity. There are those who say: "Some people talk too much about industrial productivity. What is the object of productivity in an industry which has too much production already? Is not talk about increased productivity in the textile world, or in agriculture, out of place?"
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The answer to that is that the reason why the textile industry has declined is increasing productivity and production overseas, at a rate with which we cannot compete, and the higher the efficiency that we can maintain in our textile world, the more of the trade shall we be able to hang on to than we otherwise should. It is not a fallacy to suggest that higher productivity is needed in every industry.
To accomplish this higher productivity, it seems to me that what we need are three things: better machines, better methods and techniques, and better training of our operatives. Those three, and those three together, will give us the higher efficiency that we need. How are we to get the best machines? To get an ever more rapid increase in our machinery programme throughout industry, I believe we need the help of the Government. We are definitely lagging behind America, Germany and other industrial countries in Europe in the replacement of our machinery and plant. It is rare to find in this country firms with plant less than five years old: it is a commonplace in some of the countries overseas. The culprit here in great measure is the Government. Last night I was preparing notes, from which I was going to talk, about the necessity for the Government to relax their stringent demands on writing off machinery. Then this morning, in the Daily Telegraph—and, I have no doubt, in other newspapers—came reports from America that American business was granted yesterday earlier tax relief for depreciation of their, machinery and equipment. The article went on to say:
"The cuts will encourage modernisation of industry and help to make it more competitive in world markets."
If that is true of America, it is just as true of this country, and even more so, because they are already more lenient to industry than our Government are in the way of allowances for depreciation. Mr. Dillon, Secretary of the Treasury, went on to say:
"Faster economic growth is essential if we are to reduce unemployment and provide jobs for the millions of workers now coming into the labour force."
He thought that the Treasury would get their money back very quickly by increased production.

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I am convinced that the radical adjustment of depreciation allowances would work wonders in the modernising of our plants. There are so many firms, especially the smaller ones, who take it as more or less axiomatic that, because Government taxation allowance for depreciation is, say, over twenty years, or upon a diminishing value of 10 per cent. per annum, that is the proper rate, when in effect it is very often far too slow. I would urge the Chancellor of the Exchequer—and I trust the noble Earl who is to reply will convey our views to him—that he could not do more at the present time to encourage the efficiency of industry than to follow the example of our friends in America and give easement on this problem to industry. So much for our machinery.
To get the best methods and techniques known, is, of course, the object of this National Productivity Year and the work of the Productivity Council. I do not wish to go further into that. The noble Lord, Lord Crook, and I have endeavoured to explain how we hope it will work. But both objects will be of no avail unless we train properly all those engaged in industry, commerce and agriculture. Everybody needs training if he is to do his job properly, even, I believe, we Members of your Lordships' House. I would agree very strongly with the noble Lord, Lord Crook, in the comments he made about training of supervisors and management. I have been privileged to be chairman of the National Training Council, which is now going from strength to strength under my successor, Mr. Lowthian, and I would urge the support of all in industry for the work of that Council. The Industrial Training Council, of both employers and workpeople, have declared that everyone needs training of some sort in industry. That applies to the woman in industry just as much as to the man, and I hope that lesson will be learnt. The establishment of training officers under the Industrial Training Council has shown to those industries which have applied for them the merits of proper training methods in industry, and I trust that their work will receive proper support.
I have kept your Lordships too long. I believe, and strongly believe, that the
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National Productivity Year merits, and will receive, your Lordships' support and approval. It will receive, I am sure, the same support from industry generally, both employers and trade unions. If that is the case, I am confident that in the end it will prove itself to be an outstanding success in the advancement of efficiency and well-being of our country.
5.15 p.m.
LORD GEDDES OF EPSOM: My Lords, the noble Lord, Lord Crook, and the noble Lord, Lord McCorquodale of Newton, in following him, have so far dealt with this subject on very broad lines. I am going to ask your Lordships' pardon at the beginning for following a much narrower path, and for perhaps being less reasoned and a little more emotional. The noble Lord, Lord Crook, said that this was a matter which dealt with human beings. Of course, this is indisputably the fact and, unfortunately—or fortunately, rather—workers have not yet been fitted with electronic brains, and therefore they react emotionally and not reasonably, as they are expected to do.
The noble Lord, Lord Crook, quoted from the Foreword of Aim for Prosperity, and I want to re-quote a very short phrase. It is:
"… if it can inspire a spirit of co-operation and joint endeavour …"
I believe that, unless that can be inspired, then we shall not succeed in our British Productivity Year.
I want to deal with some of the difficulties which I think exist in achieving that co-operation. The main difficulties, I think, are the attitudes of mind of workers and employers. Your Lordships may not believe this is true, but I have met employers who strike an attitude of mind which prevents them from really studying this problem dispassionately and in the correct manner. They say that they have a simple solution to the country's economic and industrial ills. The simple solution is that all that need be done is for the worker to work harder; that he should ask for no more pay; that all the wicked lines of demarcation which exist in trade unions should be automatically removed, and that management should be left free to do what it thinks is right, and not to be interfered with by consultation with the

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workers; in fact, that it would be very much better for this country, and very much easier to increase productivity if there were no trade unions at all, and particularly if there were not full employment.
As with many foolish statements, there is a germ of truth in this. It is, of course, true that if the worker no longer had security, if the worker had to face the possibility of prolonged periods of unemployment, if he had to go back again to the queue for the dole, he undoubtedly would accept conditions and wages which he will not accept at the present time. It is equally true that this would bring prosperity to the few. It most certainly would not produce the prosperous nation that the Government have said is their aim. I am sure that almost all the economists in this House, and most of them outside, would be shocked to hear me say this. I believe that it is not only what a 1s. will buy but how many shillings there are. If they are shocked about this, may I remind them that in my young days a worker could get six pints of beer for 1s., but he was not prosperous; he was the very reverse of prosperous. Therefore, we must take into account not only a desire to give the worker the opportunity to produce more; we have not only to encourage him to participate and co-operate in increasing productivity, but we have also to give him incentives to do so.
The worker's normal reaction to productivity schemes is to be against them. This is wrong, and I am not challenging that it is so. I am not saying it is right; I am merely saying that it is a fact. The very words "increased production" and, to a lesser extent, of course, "productivity" bring to the mind of most workers industrial consultants, stop watches and all that sort of thing, and reaction against them. The worker reacts against them because in the long run his experience is that it results in fewer jobs; and it is no use anybody's believing that the worker in this country is going to co-operate in anything which is likely to bring about the loss of his job or of his mate's job. It is almost like asking the condemned man to be his own executioner in order to save the executioner's fee; and that is asking rather too much.
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It is certainly asking too much of the worker, in groups, en masse, or the individual, to get round the table with management and discuss with them the possibility of increasing production for the sole purpose of reducing labour costs. Labour costs have got to be reduced, of course—it is part of the need of this nation to become more competitive. But if we are going into the National Productivity Year and employers and management are going to approach the problem of increasing production and productivity on the basis, and only on the basis, of reducing labour costs they are not going to succeed. In any case, it does not follow that if they reduce labour costs they are necessarily going to increase their productivity, because you do not increase productivity by saving time; you increase it only by using the time you save profitably.
Therefore I think we must face the fact that if we are going to get this essential increase of production and productivity, if we are going to gat the co-operation of the workers in this effort, we must concede to them the right to have some reward and benefit in that increased productivity. I know that the normal answer to this is that they will, in any case, improve their position; they will, in any case, be rewarded by the general increase in the prosperity of the nation as a whole. I am sorry, my Lords, but in my experience this is far too remote a proposition to put to the ordinary worker. It may be that he ought to be satisfied with this; it may be that he ought to feel he is making a contribution to the well-being of everybody else. But I am sorry: my experience is that we are all a little self-interested, and this includes workers and employers, because there are some employers who are self-interested too and who believe that the essence of increased productivity is increased profits. I do not deny their right to get increased profits, but it is when we come to the sharing of increased production and productivity that the problem arises. It is simple when it is a question of payment by results, where the increased production and output of the individual can be measured. It is then only a question of getting down to facts, examining them, putting a price on the facts and coming to an agreement. That is a simple thing.

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The difficulty arises where productivity is going to increase by the use of new machines, by replacing labour by machines, and where, in the view of the employer, the main contribution is capital. The employer says: "This is my capital; I have put these machines in. The increase in productivity arises from them; therefore the profits of them should rightly come to me." He forgets that in many cases—and this is particularly true where the machine is put in as a result of self-financing—the worker has contributed to that capital as well. But that is not the whole point. I have heard said so many times that where you save muscle, as it were, where you introduce a machine which relieves tedium, the worker has not got to work so hard. "Therefore", it is said, "what is he grumbling about? What we are doing for him is excellent"—the employer forgetting, more often than not, that when you reduce physical labour you increase the need for mental effort and you, again more often than not, add to the worker's responsibility.
How, then, are you going to reward the worker or find a reasonable division of the spoils, if I can use that word, where increased productivity arises purely and simply from capital? I want to use an extreme case to illustrate my point. I admit that it is an extreme case. I saw recently on the television screen a giant earth-moving machine. I cannot remember the statistics, but they were almost incredible. This machine cost over £1 million. It lifted, I think, 30 tons of earth at a grab. It moved the earth from here to there, standing still. When it wanted to go a little further, it picked itself up and walked along. It seemed to me to do everything but talk to the driver.
This is, of course, the whole point of it. This machine, magnificent in design and almost science-fiction, cost an enormous amount of money and, therefore, necessarily had to give a return on capital. Yet in the long run, it had to be worked by a man. The man had to tell the machine what to do, and not the machine tell the man. How do you reward this man? Is he just another machine operator? Or because it is a big machine do you give him a little more money? Do you give Him a shilling an hour more? Do you give half-a-crown or £1 an hour more? Is
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that as silly as it sounds?—because, remember, if this man is not operating this machine properly, the loss of production is very much greater than if he were using a small machine. If he uses it negligently the cost of repair is very much greater than it would be for a smaller machine. If it is out of order, the loss of output is enormous. In many cases he is replacing a number of trained drivers. How do you reward him? Do you say to him: "This is capital outlay. This machine has cost me a million pounds and you have made no contribution to that million pounds; therefore the profits are mine"?
That is said, my Lords. This is an attitude of mind on the part of employers, and I suggest that it is one of the difficulties, one of the obstacles, to getting the co-operation which is so essential if this Year is going to succeed. Nobody is going to deny, certainly not in this House and I think not outside, that the prosperity of this country, of the nation, employer, worker, man, woman and child depends entirely upon the efficiency of our industry and upon the worker himself making a contribution to the efficiency of that industry. He has a part to play. Of this there can be no question.
Neither could it be denied that the worker is suspicious—unnecessarily suspicious—of attempts to increase production and productivity. I do not mind what is going to be said to me as a result of what I am now going to say, but too many workers in this country at the present moment look upon full employment as God given and not something which to some extent is fortuitous and to some extent is the result of careful planning. In any case, it is something which has to be safeguarded and treasured. Too many of them believe that this can go on and that they have nothing to worry about. I do not believe this is true. I believe that if they are not careful they will lose the enormous advantages of full employment, and unless the worker is prepared to cooperate with the employer in this Year that is coming, then we are not going to succeed.
I am going to deal only very briefly with two further difficulties that I see. I have already referred to the muddle- I headed view, if you like, of the worker

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that he wants a reward in return for increased production. A pay pause and expanding production are not bed folk; they are incompatible from a worker's point of view, whatever may be the economic reason for the one or the other; they are completely incompatible. You cannot hope that the workers will go into this National Productivity Year with the enthusiasm that they ought to have in their own interest, if you are going to tell them at the outset that, whatever may be the result of the increased productivity, there is going to be a pay pause. I appreciate that the Chancellor of the Exchequer is in the difficulty that he does not want to lift the pay pause until he gets increased production; but my view is that he will not get increased production until he lifts the pay pause. That is the dilemma. One can only hope that the Chancellor will see his way clear, in the light of the improved economic position of the country, to do something about this problem, because I believe that unless something is done there is very little hope indeed of getting the co-operation which is so necessary.
Finally, I am quite sure that we are facing a situation which, difficult though it may be, can be overcome. But it cannot be overcome, in my submission, by trying in the first place to deal with it on the basis of what some middle management call the stupidity of the worker. It cannot be overcome by putting the blame on the worker. The employer cannot whitewash himself with the sins of the worker. What he can do is try to overcome the difficulties with patience.
May I spend just two minutes in referring to what I believe is one of the most remarkable exercises in industrial relations in recent years? I refer to the agreement at the Esso Foundry at Fawley. This was a remarkable agreement; there can be no question whatever about it. Anybody who knows anything about it can do nothing but marvel that this was achieved. But how was it achieved? If anybody thinks that this Rome was built in a day, he is very wrong indeed. This was brought about by patient negotiation, not in the four months in which it was negotiated but over nearly two years before the plan was put on the table. It was carefully
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prepared, carefully conceived and then put across after the most careful planning by those responsible; and, as a result, it was accepted. This is not a pattern for industry; everybody cannot apply the Fawley experiment; the conditions are not the same. I quote it only because I believe it to be an example of what can be done if only an employer is enlightened enough and if only he is patient enough. He can overcome, as they did at Fawley, almost every prejudice that is existing in the trade union movement. Finally, if I appear to have been talking to enlightened employers about something they already know, I would only say that if all employers in this country were enlightened there would be no need for a British Productivity Year.
5.35 p.m.
LORD BAILLIEU: My Lords, I think we are greatly indebted to the noble Lord, Lord Crook, for his action in putting this Motion on the Paper to-day. He spoke to us in simple moving terms, and he left me with a strong impression that he felt wholeheartedly that a National Productivity Year was essential to this country. My noble friend Lord McCorquodale of Newton, a past Chairman of the National Productivity Council, has told us something of the work of that Council and he has stamped on this effort its non-Party, co-operative character. That, I think, is fundamental. We have just listened to the noble Lord, Lord Geddes of Epsom, who has been at pains to take us behind the scenes and let us see something, or understand something, of the mind of labour in approaching this problem of productivity. That is all to the good.
I do not intend to take up very much of your Lordships' time, except to say that I regard the National Productivity Year as one of great importance for the future of this country. I propose, not following Lord Geddes of Epsom, to make some general observations; to point out some simple truths which seem to lie within the context of those observations, and to invite your Lordships' concurrence.
The first question I would ask myself is: why do we want a Productivity Year? I am going to suggest that we want a Productivity Year because we

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are a trading nation. We live by trade, by which I mean all that vast and somewhat intricate complex of production, of commerce and finance through which our island life is nourished and maintained. We must buy; that is, we must import the bulk of our food and raw materials in order to feed our people and to sustain their industry. We must sell; that is, we must export goods and manufactures and services in order to pay for these imports. And we must do this in a very highly competitive world. If we fail, then our standard of living will fall; we could be faced with mounting unemployment; we could find the amenities we have cherished so closely and our way of life vitally endangered. I think we can say, therefore, that our future happiness, and our way of life as a people, depend upon the efficiency and productivity of British industry; and, I would add, of British commerce and finance.
There is no doubt about the need for greater productivity: that is self-evident, I think. If we are to improve our place in the great league of industrial nations that is vital. We have only to look at what we face—the continental United States, Russia, the Common Market and Japan, with a population twice our own—to realise that we face a situation of great challenge and uncertainty in the coming ten years. But may I say this to your Lordships? In the advanced industrial countries of to-day, more and more of us are concerned not with pure machine minding but with distribution or the service trades, and in my view we must apply our productivity methods and assessments as much to the retail shop, to wholesaling or to the office, as to the factory. These may be more difficult to assess and to measure, but there is no reason why we should not try. They remain a field of great productive endeavour from which I am certain we may harness a fruitful return.
Whilst effective action, therefore, in the field of productivity requires the cooperation of all elements—and we have all emphasised that to-day—I should like to say here, as one concerned with industry, that I recognise fully the special responsibilities which devolve upon management in this challenge. In my view, management will need to have, and to promote, during the coming
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years, a greater understanding of the changing rôle of management—I cannot elaborate this point to-day; hut we have only to look at what has happened in the last ten, fifteen or twenty years to realise that this is essential. It will have to promote a greater understanding of the possibilities and limitations of new scientific technique. And that is not only a question of understanding; it is a question of communication, as was emphasised by the noble Lord, Lord Geddes of Epsom, to your men, to your staff and to your management. It must promote, thirdly, a greater understanding of the effects of political, economic and social development upon the business enterprise. They are hearing upon us the whole time, and it is our job to interpret (them, to assess them and to communicate and to expand. And, fourthly, management will require a greater understanding of the problems of management succession, and of education and training for management.
In all these spheres, my Lords, I regard management as having special responsibility. There is here a vast field for human endeavour and industrial statesmanship. I think that this challenge will always he with us, and I agree that the solution devolves specially upon management. I would go further and say that the individual manager, whatever apparatus of management he may have around him and may command, must have the capacity to seize an opportunity, to accept the responsibility for exploiting it, and he able to explain what he is doing. This capacity will decide whether the potential developments inherent in Government policies and in new advances in knowledge, will, in fact, be transferred into worthwhile human gains in the coming decade.
But, above all, I believe that it is people that really count. We all know the good manager when we see him. Apart altogether from technical qualifications, we find in him a special critical faculty, an elusive quality which some of us call "hunch". This gift springs from long experience. If it is not born in a man, it certainly springs from carrying greater responsibility at all levels. It expresses itself in those qualities of mind and character that we always recognise and admire in the best managers.

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To the extent that the managers of this decade are men of that quality, we shall find that the opportunities before us are attacked with understanding and responsibility. This, I think, will prove to be the ultimate measure of our success in management, in providing genuine leadership, in creating that inner harmony, that sense of common purpose, that feeling of belonging which is the touchstone of efficiency and, I would add, of industrial peace. This again, in my view—and this is the keynote of my speech—provides the principal key to increasing productivity which constitutes, I believe, the central challenge to this generation; and this, given understanding and responsibility, we may expect to achieve without turning ourselves into mechanical robots or placing progressively heavier physical burdens upon our people. I am sure that Productivity Year will receive your Lordships' full and undoubted support.
5.45 p.m.
LORD CITRINE: My Lords, circumstances have arisen which necessitate my attending elsewhere in a short time, and I am deeply indebted to my noble friend Lord Peddie who has permitted me to speak in the place which normally would have been assigned to him in this debate. I expect that this is one of the least contentious Motions that has ever been before your Lordships' House. There has not been a single speech, nor is there likely to be, which will really deprecate the policy now being pursued by the British Productivity Council in organising this National Productivity Year.
I was a member of this Council, as at one time were other Members of this House who are now present, and I knew from the beginning what an uphill task it was to arouse the British people generally, whether in industry or elsewhere, out of their habitual mood of complacency which convinces them in almost every sphere, even in the realm of sport, despite the many examples to the contrary, that they can never be beaten. I think the last thing in the mind of the British worker is that because of some superiority of organisation, some better technique of management, or possibly some more intelligent working on their part, other countries can get ahead of us and so imperil
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both the prosperity of the country and his standard of life. This is emphatically an effort of good will, a recognition by those who are responsible for its organisation. In that connection I would include the British Employers' Confederation, the Trades Union Congress and other bodies who are associated with the Council. It is an effort of real good will to try to do something which they regard as absolutely essential. In my opinion they have devised a wise method of instilling their doctrine of the necessity for greater productivity, by a system of local visits.
References have been made in the debate to the attitude of mind of certain employers. I am bound to say that in the course of my lifetime, particularly my trade union experience, there has been marked progress in that attitude of mind. I do not think there is a large firm in the country to-day whose labour policy, in particular, is not entirely in advance of anything that could have been contemplated 30 years ago. Their example should be instilled into others, because, after all, British industry is not concerned mainly with big firms; it still remains the fact that from the point of view of employment the small firms in bulk employ the greater number of people. That is why I think the system of local visits by workers and management from works to works of different firms, who see processes that they have never seen before, and which are quite unfamiliar to them, will do a great deal to break down that wall which used to insulate—and, I am afraid, still does—so many firms in this country.
We are all aware that apart altogether from the competition which inevitably ensues in the overseas market, there is also keen competition between firm and firm in the same locality, and in the country generally. The inevitable result of that in the past was a measure of secrecy which more or less kept at arm's length competitors in the same business. I know one or two big firms who are still in that semi-secret state of mind. But, broadly speaking, that no longer can be said to be the rule. So I feel this system of local visits is an excellent plan.
One very encouraging feature of visits abroad by delegations of employers and trade unionists is that they will make them realise that because a thing is British, or because a method is tradi-

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tionally British, it is not necessarily the best in the world. They will discover that other countries, particularly in the post-war period, have advanced their methods to such an extent as to furnish a very good example for those who are permitted to see them. In iron and steel, in shipbuilding, and I am proud to say in electricity supply, it has become an attitude of mind to send people abroad, not merely as individuals for special purposes, but as delegations too, as well as to exchange employees. Such activity must broaden the minds of those concerned; and if on their return they do their duty, they are bound to impart their experiences to those with whom they work.
Reference has been made by noble Lords to the period of severe competition that lies ahead of us, whether we go into the Common Market or whether we remain outside it. There can be no greater truism, and I only wish that a little thinking were more generally indulged in by the people of this country as to what that really means. We must have a national effort on this, a stirring of people out of the attitude of mind which makes them feel, in the good old British way, that things will come out all right somehow, if only we leave them alone. The habit of muddling through, about which we heard so much in the two World Wars, is the sort of attitude I have in mind.
How is this united effort to be made? The noble Lord, Lord Geddes of Epsom, has referred to this matter from a different point of view, but, at national level, there is complete understanding of the problem on the part of both the employers, through their organisations and as individuals, and the T.U.C. and its members. I would go further and say that at national trade union level (speaking in general terms, because there are still trade unions who will not follow the policy of the T.U.C. in these matters) there is, broadly speaking, no problem in the realm of co-operation. They are already convinced and at local level also most active trade union officials understand the importance of efficiency on the part of the various industries and firms.
However, when it comes to the workshop, how many individual men really give any thought to this subject at all? I am afraid not very many. There are
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some, of course, who do give it thought, but it seems to me that this is easily the most difficult phase of this problem—to get over the importance of increased national productivity. That is where the effort must be concentrated. It has stood out for a decade or more, and possibly for a generation, that the enlightened policy that is pursued by the best of the trade unions towards modern industry very seldom reaches down to workshop level. There is a defect in this regard in trade union structure and organisation which must be overcome, and it is no use blaming the employers all the time because they have lapses in the same direction.
The noble Lord, Lord Crook, who moved the Motion set out very clearly the essential points. I took them down as: better industrial relations; joint and intimate consultation; effective training; and better communication to the workshop floor. I feel the noble Lord is unquestionably accurate in his choice because these points are essential in every respect. But there is another essential which was referred to by the noble Lord, Lord Geddes of Epsom. When we talk of the productivity of a country, let us try to visualise what we mean. There are many different industries, whose efficiency varies one from another. I would not be exaggerating if I said that there are hundreds of thousands of firms in this country to-day, and they are the people who, from day to day, carry out the work of what we call national productivity. The essential element which I have in mind—and which Lord Geddes Of Epsom mentioned without any collaboration with me, so it is a thought that is common to us both—is that it must be made clear, beyond any possibility of doubt, that working people are going to share adequately and equitably in the prosperity that is envisaged as a consequence of better productivity. For generations individual firms have used methods to stimulate workers into giving greater effort for the particular firm. But, to my knowledge, never before has there been any breadth of conception comparable to this, when we think in terms of the country as a whole and its economic future. However, once again I think that it will be difficult to get that breadth of perspective over to the average man. I regard it as imperative that the individual

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workman should realise that there is no doubt whatever about his direct share in the rewards that come with increased prosperity.
If I might now turn to the Government's wages policy, I regard it as an insurmountable handicap at the moment—I am not at this point talking about the wages pause, because that is a quite different thing, but their wages policy, which seeks to limit the rewards that firms and industries can offer to their workers. It tries to set those rewards within a limit of 2½ per cent. of national productivity. I would say that that is far too remote to be a real stimulus to the average workman. And it is not only remote, but is completely inadequate in amount. It is a real handicap to those industries which can reasonably call themselves prosperous in conducting their negotiations and maintaining good relations with their employees. I have had some direct experience of this, which circumstances do not permit me to make public but they are there just the same. I would say that there are many firms that may feel that in trying to be loyal to the Government's broad policy they are in fact running a grave risk of antagonising their own workers. I do not believe this policy can be maintained indefinitely; I see signs of it giving way already, and I think it is a very bad thing for a Government to have to give way on a policy through duress when it is something they will not do out of breadth of view or perhaps more generous spirit.
When we were debating the question of the nurses salaries, the noble and learned Viscount the Lord Chancellor, in reply to my question, when I asked him what there was left for trade unions to put forward as reasons for increased wages or salaries, said, "Increase the size of the cake"—a very logical, a very understandable point of view. Here is a case where everybody is trying to increase the size of the cake, but let us always be sure that in any propaganda or publicity about that we have strictly in mind the importance of the workers getting a share. It has long been a bugbear of trade union thought that there is difficulty, sometimes, even in prosperous industries, in getting the workers adequately rewarded; and sometimes there have had to be strikes before that
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could be achieved. I hope there will be no misunderstanding on that.
Here, through this National Productivity Year, there seems to me to be an opportunity for an all-out effort on the part of everybody to do that; to see, first, that the productivity of the country is vastly augmented and, secondly, that the workpeople are properly rewarded. The literature which has been put forward shows how wide this cooperative effort is, much wider than anything before, as the noble Lord, Lord Crook, has already said, and all men who have the welfare of our people at heart will wish them well in the year that is ahead of us. But always remember, my Lords, that it is a sustained effort that is required here, and not an effort concentrated into merely a single year.
6.2 p.m.
LORD MARKS OF BROUGHTON: My Lords, I join the noble Lords who have preceded me in this debate in thanking the noble Lord, Lord Crook, for his timely and important Motion. We meet on common ground on both sides of the House, for we all have at heart the prosperity of the country and the raising of the standards of life of the people of these islands. Any debate which highlights the problems of productivity must he useful, as it helps to focus public attention on these problems; to inform and to form public opinion.
I am sure that this House will welcome the initiative of the British Productivity Council in declaring 1962–63 a National Productivity Year. Personally, I should have preferred "he declaration of a National Productivity Decade, for it takes a much longer period for a new pattern of industry to evolve. But to my mind it is not sufficient to think of increasing productivity only in terms of industry by industry; the approach should rather be factory by factory; for it is only on the floor of the factory that real success in this campaign lies. The search for increased productive efficiency, in common with the understanding of human relations, must be regarded as a constant challenge which demands constant study, education and application. ! This, of course, is an immense task; but with all the resources of publicity available—television, cinema, radio, the Press—the task can be facilitated.

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We all want our economy to grow. For this we need a healthy demand at home Which will help us in our drive for exports. If we as a nation are competitive, we shall grow. We shall grow in a way which we can sustain without damage to the balance of payments, because the goods will be available at the right price. But we must not delude ourselves with the idea that the proclamation of a target figure can make us grow. We can grow only if we make ourselves fully competitive; and that means concentrated effort at factory level to exploit the wealth of new and efficient techniques which the scientific and technological revolution of our time is making available. The challenge to industry is to achieve still higher productive efficiency, batter quality and lower prices, in order to stimulate sales at home and abroad. Are not these, my Lords, the aims of the National Productivity Year?
I make no apology for referring to the methods of my own firm in meeting this challenge. After my (maiden speech, your Lordships were anxious that I should tell you something more about the business with which I am connected. In 1947, at a time when British industry had not yet recovered from the effects of war, my firm found it necessary to establish a production engineering department. The department was designed to assist our manufacturers in the progressive modernisation of their plant, and to adapt themselves to the latest technical advances. Production engineering may seem a surprising activity for a retailer, but we found it absolutely essential to create a department capable of advising our manufacturers on factory administration, lay-out and production problems. This approach is an important aspect of our campaign to achieve better and better values. The truth is that, whereas once Napoleon may have been right in his gibe that we were a nation of shopkeepers, to-day we need to be a nation of manufacturers.
May I give some examples in widely different fields, of what can be achieved by up-to-date methods in expanding production, improving quality, lowering prices and making us competitive? In the bakery industry a veritable revolution in production techniques is taking place. There have been remarkable in-
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creases in production with the same labour force, due to the use of electronic baking techniques, continuous mixing and mechanical handling. In the hosiery and knitwear industry, for instance, by employing modern plant incorporating electronic controls, suppliers have been able very substantially to increase their production with the same labour force.
HATRA—that is, the Hosiery and Allied Trades Research Association—has produced mechanical devices whereby fabric qualities can be more precisely controlled. This also means less waste, as more perfect merchandise will result from machinery using these aids. In the footwear industry there have been many advances in shoemaking techniques during the last eighteen months, thanks to the intensive research and development carried out, not only by SATRA and other trade associations but by the shoe machinery companies, as well as by progressive firms in the industry itself. Manufacturers, in using these techniques, have been able to double their production with the same labour force while improving quality. Of course, all this leads to lower prices for the consumer, and in this modest way to raising the standard of life.
These are but a few examples which describe definite modern trends of productivity. They can be paralleled in all the other fields in which we operate. I would not weary your Lordships with a lengthy account which might be only repetitive, but they all lead to the same goal—greater production per man-hour. Many of our manufacturers are taking advantage of the fascinating possibilities and opportunities created by scientific research and modern technology. It is thanks to these developments that my company us now able, once again, to embark on a new lower-price campaign over a wide range of goods, despite the handicap of increased purchase tax. It has been made possible by the ready co-operation of our suppliers, who are naturally interested, as we are, in expanding their output.
The policy which I have described is neither novel nor original. Its value and importance lie in its application, which might serve as an example and which might profitably be pursued in other spheres of industrial activity. But such a policy requires much capital investment-

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ment. Machinery must be renewed if production as to keep abreast of the astonishing pace of modern invention-inventions which can render a machine obsolete within a very few years. I hope that, as he promised eight months ago, the Chancellor of the Exchequer will give the most sympathetic attention to the means by which capital investment and technical progress can be encouraged. I agree entirely with the noble Lord, Lord McGorquodale of Newton, who referred to the news this morning of the approach of the United States Government towards the problem of depreciation of machinery. If we in this House have no influence, perhaps influence from abroad may help the Chancellor to make up his mind.
In encouraging technical progress the research associations of the Department of Scientific and Industrial Research can be of very great service, because of the fund of knowledge and technical "know-how" which they have at their disposal—though not all firms are fully aware of how much they have to offer. I feel sure that the National Productivity Year can do much to publicise the resources at their command. The application of modern industrial technique depends, it has been said before, on enlightened management and a close, understanding and sympathetic relation between management and labour; for without this even technical progress will not get us very far.
Finally, maximum efficiency and increased productivity are the result of an attitude of mind which is determined to eliminate all waste of effort at every stage of production and distribution. This is indeed the attitude of mind which lies at the basis of technological advance. But it can be just as fruitful in Government administration as in industry, because it depends on the same fundamental principles of simplification and rationalisation. I wish that the Government could be persuaded to subject their own administrative methods to the most vigorous scrutiny, with a view to reducing their overhead costs and helping to relieve the heavy burden laid upon industry by taxation. The National Productivity Year Handbook says:
"Nothing is more effective than the practical example provided by leading firms, large and small."
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May we not look to the Government as well for such an example?
My remarks to-day have referred chiefly to manufacturing industry, because that is the field in which I have been most closely concerned. I need not stress its importance, because it produces one-third of our gross national product. I am convinced that in this field a new spirit is emerging, particularly among firms which are eager to seize the immense opportunities created by the second Industrial Revolution through which we are now passing. I am sure that this is the spirit which the National Productivity Year is intended to encourage, but it will take more than a year to bear full fruit. I should like to repeat that what we need is not only a National Productivity Year but a National Productivity Decade. If, my Lords, I have wearied you with my own experiences, I beg forgiveness. I believe that the example which we are trying to set, if followed by the nation, will make us so competitive that we should have no fear of entering the Common Market, or any other market.
6.20 p.m.
LORD WALSTON: My Lords, we are grateful to my noble friend Lord Crook for giving us the opportunity of discussing this important subject, and we are also grateful to him for his own speech. He said so much that was wise and so much that was worth saying; but, above all, I should like to emphasise his remarks on the need for understanding between management and those who actually work on the factory floor. Indeed, the noble Lord, Lord Marks of Broughton, mentioned this fact; and my noble friend Lord Geddes of Epsom told us very many things which were well worth saying in this respect. I am tempted to pursue that particular aspect of the problem, but I shall not do so; many who have more and far wider experience than I, have already spoken to this, and possibly others will too.
I shall instead confine my remarks almost entirely to agriculture, because I believe agriculture has quite a lot to teach industry in this respect, particularly in the relationship of employer to; employee. I know that agriculture has very many advantages. It works in

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small units; there is close contact; the life of the farmer and that of the people who work for him are very largely shared; there is complete understanding of the problems. But it is, my Lords, I think significant that agriculture is the outstanding industry where industrial disputes do not anise, and this in spite of the fact that the agricultural wage is still, to all intents and purposes, the lowest in the country, and in spite of the fact that the standard of living, although rising, is still far lower than many of us think it should be.
However, in spite of these things, it is interesting to look at some of the achievements of agriculture in the last ten years. In passing, and without introducing a discordant note into this debate, I should like to say how sorry I am to see that among the sponsors, among the vice-patrons, whoever they are, of this National Productivity Year there is no representative of the agricultural industry—no President of the National Farmers Union and no representative from the National Union of Agricultural Workers. I do hope that, before the Year really gets under way, that omission can be repaired.
I do not want to weary your Lordships with many figures, but, after all, figures are the only way in which we can assess progress. I should like to quote, first of all, from a paper called the District Bank Review, written about a year ago by Mr. Ford Sturrock, the director of the farm economics branch of the School of Agriculture at Cambridge. He points out that between 1950 and 1960 the numbers that worked in agriculture had fallen by about 20 per cent., whereas output had expanded by 17 per cent. This implies, in his words, an increase in output per man of more than 40 per cent., or over 4 per cent. per year. And again quoting Mr. Sturrock, that is an achievement which would be envied by some manufacturing industries.
Now a few more individual figures from this particular industry. In the old days of hand labour in sugar beet, an important crop in the eastern counties, it required 200 man hours an acre to grow and harvest a crop of sugar beet. The Cambridge University Survey shows that that has now been more than
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halved. It is down to 98 man-hours on the most recent figures, and in certain instances where greater mechanisation has been practised it is still lower than that. With regard to the harvesting of wheat, in the old days, with the old-fashioned binder (or what is now the old-fashioned binder, though it is still used by many people), it required 43 man-hours to harvest an acre of wheat. If a combine harvester is used in normal conditions, with no great accent on efficiency, 13 hours, as opposed to 43, are required; whereas on the better farms that figure has been reduced still further, to 8 hours. In my own case, I am confident that in this coming year I shall be able to reduce it to 5 man-hours per acre. Compare that with the 43 of the farm of ten or fifteen years ago.
If we look at the dairy industry, just shortly after the war, in 1949, when cows were machine-milked but milked in a cowshed, it required 180 man-hours per annum. In 1962, with the more modern yard and parlour, still machine-milking, that figure of 180 has been virtually halved to 95. If I may, emboldened by the noble Lord, Lord Marks of Broughton, I should like to quote just a few figures for my own farm. In the last ten years, the wage rates for agricultural workers have risen by 60 per cent., but the actual wages paid because of reduction in the number of men have risen by 22 per cent., whereas the gross product during that period has risen by 42 per cent. This, my Lords, is by no means an exceptional farm; it is what can be found in many places throughout the whole country. So I do suggest to your Lordships that agriculture has a record of which it can be proud in this matter of productivity. And not only that; it has quite a bit from which other industries could perhaps profit if they took a look at what goes on in the small units in out of the way places.
One more comparison, since our minds are now so much on Europe and the possibilities of the Common Market. If we compare the net output per man engaged in agriculture in this country with that of the man in Holland, West Germany and France we find that even the relatively efficient Dutch worker produces rather less than half, in value, of what the English worker produces, and

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the West German or French worker produces rather less than one-third. So as far as our production in this country is concerned, I feel we have a record of which we can be proud. But if we pursue this matter a little further, the picture takes a curious turn in the opposite direction. I have on previous occasions spoken to your Lordships about the margin which exists between the price the farmer receives and the price the consumer has to pay. A certain number of figures have been bandied backwards and forwards on this subject, so I thought I would look a little closer into just one commodity, wheat, and try to trace it through a little further and see what happens to it in this country, and compare the situation with that of some of our neighbouring European countries. Some very curious facts emerged from this. It was not a simple problem to arrive at these statistics, but I have done my best to do so accurately and objectively, with the help of many others.
It appears that the average price of wheat in this country delivered to the mills in 1961—these figures are taken from the Corn Trade Review, the Board of Trade returns, and so on—averaging up imported wheat from Argentina, Canada, the United States and Australia with domestic wheat, turned out to be £26 6s. 3d., the lowest of four countries. Holland came next with £26 14s. 0d. About two-thirds of the Dutch wheat is imported, and one-third is home-produced at a higher price. France came next with rather over £34; and Germany was the highest at £37 2s. 0d. If you then look at the sale price of flour ex-mill, and of wheat by-products—offals—making appropriate allowances for the extraction rates, which vary slightly from country to country (I will not give the actual figures because I think that would be tedious for your Lordships), you will see that we do not produce flour as cheaply.
It is the Dutch who produce the cheapest flour in the end, balanced off with offals. The margin of gross profit over the price of wheat bought by the millers is, in Holland, 28·6 per cent.; in Germany, slightly more, at 29·6 per cent.; in France, slightly higher, at 35·6 per cent. and in the United Kingdom, the highest of all at 41·1 per cent. In
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other words, although we have the advantage of buying the cheapest wheat of any of these four countries, there is—I hesitate to use the word "inefficiency", but at any rate, something which happens between the time that wheat enters the mills as wheat and the time it leaves as flour and offals which causes the outgoing price, the selling price, to be 41 per cent. higher than the incoming price, whereas these other countries can, presumably, operate at some sort of satisfactory profit on a range of from 26 to 35 per cent.
I would remind your Lordships that OUT wheat industry underwent a drastic reconstruction in the early thirties, when with the object of increasing the efficiency of our milling industry, many small country mills were closed down. It seams to me that possibly one of the things the National Production Year could achieve would be to investigate closely why our millers require a considerably larger margin of profit than any of their Continental competitors. If it is said that it is purely a matter of wages, while wages are extremely difficult to compare, I would point out that the wages in this country for a 42-hour week vary from £9 3s. 6d. to £13 14s., while in Holland the average wage (including social security, paid by the employer) for a 48-hour week is £13 2s. There may be a difference, plus or minus, of a few per cent. but it is not very large in either case.
Having got that far, I thought it would be interesting to take a look at the bakery industry. I was extremely interested to hear the noble Lord, Lord Marks of Broughton, mention the great advances which had been made in the bakery industry in recent months, because the picture I have from these figures is a very different one. I would make it clear that when I am talking about bakery, I am talking solely of ordinary bread, and not of biscuits, cakes or fancy rolls. If you compare the price of one ton of standard flour, of ordinary wheaten flour, of 72 to 75 per cent. extraction, which is used for bread-making, with the price of bread made from that ton of flour, again with appropriate adjustments for the weight of bread that is made (because in some cases you get a heavier weight than in others) you find a most extraordinary picture. You will find that the French

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baker operates on a margin of 11·4 per cent. I think that this is a somewhat misleading figure, because, even though that is the correct figure, comparing bread with wheat, he expects to make a profit on some of his fancy sidelines—brioches and croissants. The actual fact is that, so far as bread is concerned, he can produce bread at a margin of 11·4 per cent. of the price he pays for flour. The Dutch baker is less efficient than the French. He operates on a margin of 45·8 per cent.—quite a reasonable one, I should imagine. But if you look at the English baker, you will find the staggering margin of 118 per cent.
These figures are obtained from the appropriate trade sources and from the Board of Trade. No doubt there will be explanations of all of them. I know that English bread is more inclined to be wrapped in cellophane, if people think that it makes the bread better. It may be pre-sliced; and some of it, though by no means all, is delivered. All this, of course, costs money. Much of the bread is able to stay relatively fresh for a matter of 48 hours. There are many factors which enter into this question of margins, but I suggest to your Lordships that here is something which is of great concern to everybody in this country.
While increased productivity, from the point of view of exports to South America, or wherever it may be, is of importance, if we can achieve, without being unduly harsh on any of the people engaged in these operations, some reduction of this widespread margin, so that (putting it again in the simplest words) our millers and our bakers require a margin no larger than the Dutch millers and Dutch bakers, we shall have gone a considerable way towards reducing the cost of living of the ordinary man and woman in the street and towards increasing, in one form or another, our actual productivity. My Lords, I hope that in the course of this year matters of this sort will be looked at closely and critically, not with the idea of "whitewashing" but of arriving at all the true facts, to see whether we can organise this important industry in such a way that the British farmer continues to receive the same price for his wheat as he has done in the past, and as do the Dutch and French farmers, and that the British
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housewife does not have to pay any more for her flour and bread than do her fellow housewives in Holland and France.
6.39 p.m.
LORD LUKE: My Lords, we have had most interesting contributions to this debate, and I hope that the noble Lord, Lord Crook, will feel that he has some reward for his initiative in introducing the Motion. I should like to join with all noble Lords who have indicated our gratitude to him for having done so. He himself produced a most interesting speech, and among the many things he said he drew our attention to human relations and the right climate leading to confidence between all sections in industry. The noble Lord, Lord Baillieu, mentioned good management with understanding. The noble Lord, Lord McCorquodale of Newton, dealt with trading and industry. And the noble Lord, Lord Citrine, in what I thought was a remarkable speech, produced equitable distribution of reward resulting from increased productivity.
I mention these points, which I picked out from the speeches of noble Lords, because I shall keep them all in mind, and I hope that other noble Lords, whether they have taken part in this debate or not, will also do so, because I maintain that all of us have a part to play in this Productivity Year, nationally or locally. We all need to keep these rnatters—and, indeed, all the matters mentioned in this debate—in mind. It is a most important subject and an important co-operative effort, as the noble Lord, Lord McCorquodale of Newton indicated, the object being to bring to the forefront of our minds the opportunities for greater efficiency which we may be missing, and to suggest ways and means of putting this right. I take it not as just one more exhortation, but as an open invitation to take a sensible and searching look at ourselves; to take serious note of how we measure up to what others, perhaps more successful than ourselves, are doing—and by "others" I mean other nations and other organisations—and, more important still, after we have taken a look, to take some action to raise our own standards. This is, of course, as has already been mentioned, largely an attitude of mind. The noble Lord, Lord Geddes of Epsom, mentioned communication. And

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that is the whole crux of the matter: getting to know and keeping up to date through taking the trouble to observe. The National Productivity Council are making it easy and inviting for us, by conferences, discussions, demonstrations and exhibitions; there is plenty of opportunity for all of us to take a course or courses of information and instruction. All this is designed to bring all who are in practical production of any kind into contact with all that is going on in research. I think this effort, if it is gone into properly, will help to answer the aspersions, both at home and abroad, that we have lost our talent in this country for vitality and attention to detail and for taking trouble in our operations. I do not think this is at all a true accusation of our inventiveness, our pioneering and our research, because in this we are still leading the world. But it may well be true of our application of new inventions and ideas, and we should check up on this. It may be our misfortune that this leads from our disinclination to make changes until they are forced upon us. I think we have a case in point in the changing patterns of trade overseas. I think we are slow to change our thoughts and methods in this respect. We are slower in adaptation.
I am glad that the noble Lord, Lord Marks of Broughton, mentioned production engineering, because I think we are all aware of the good effects which can flow from business efficiency experts, who can take an objective view of any operation in business administration and prescribe a more efficient way of doing it. The noble Lord, Lord Marks of Broughton, may have his own experts, but others of us have used these people from outside. I think there is a tendency among some people to accuse these experts of being only experts in telling other people how to run their business, as if there were something derogatory about it—a sort of, "You mind your business, and I'll mind mine." This again stems from the view that we can do no wrong. There, I maintain, is a very important danger signal for us, and a moment for humility in our own organisations.
It comes to this: that we are all so immersed in our own affairs, too close to it all, that we often need the specialist's
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eye from outside to diagnose for us. I think that is true of any organisation, whether it is in business or anywhere else. And the older the organisation, the more necessary this help from outside becomes. It is a healthy exercise to get an efficiency view from outside; to see ourselves as others see us, and not be shocked about it. Productivity Year is a calculated look at ourselves, and with some sturdy action to follow where the cap fits. I think that in this none of us is exempt; it goes right up and down the line throughout the country.
Like the noble Lord, Lord Marks of Broughton, who wanted the campaign to go on for ten years (I think he has something there; I do not know about ten years, but perhaps five years), I have a criticism. It concerns the title Productivity Year. "Productivity" ought to have, and I am not entirely convinced that it has, a sufficiently all-embracing meaning. I fear there is a tendency to consider this as meant only for those in actual production, and I can imagine people in other walks of life considering themselves to be outside and not affected by this; that Productivity Year does not apply to them. But that is quite untrue. I suggest that a better title (I know that it is a little late, but I am bringing this out because I feel strongly about it) would be "Efficiency Year which can embrace production and all other aspects of our national life in one, including human relations, which were dealt with by the noble Lord, Lord Crook. I apologise to the Productivity Council for the impertinence of this suggestion, but I make it in the spirit of wanting their campaign to have every chance of success and to capture the imagination of all.
Many noble Lords, like myself, are no doubt already members of locally formed councils for promoting this national efficiency year, as I prefer to call it; but I hope that those who are not will all join, because I am sure that we all have a part to play. I hope that we may make an impact all over the country in order to ensure the success of this most worthy campaign.
6.48 p.m.
LORD SHACKLETON: My Lords, the attendance is getting a little thin, but I think this has been a very high quality debate and we can regard ourselves as

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a select group of enlightened employers and enlightened trade union leaders. I should like, first of all, to congratulate my noble friend Lord Crook, who is so extremely well qualified to have introduced this debate, not only from his many years experience as a trade union leader, but also from having for many years sat in one of the hottest seats of industry as Chairman of the National Dock Labour Board.
I think this has been one of the best, if not the best, of the debates that we have had on this subject; and the noble Lord, Lord McCorquodale of Newton has taken part in most of them. In this debate there have been many speeches of high quality. The only thing that worries me is what they lead to, and how—I do not want to call them our fine words, but the wise words from all noble Lords on both sides of the House, can be given effect to, other than having just a small mention in the newspapers. I expect The Times will give us a bit of publicity, and that will be that. Clearly, the Government have a responsibility in this matter. I entirely agree with those noble Lords who say that this is a responsibility for industry and for all of us. But the Government, to a greater extent than at times they are prepared to admit, set the framework in which we operate.
Although I do not wish to be Party-political to-day, I must say that there have been factors in Government policy—and this is apt to come from either side—which may be damaging to confidence, and may be extremely damaging to good relations in industry. I was a little disappointed that the attractive pamphlet on productivity which has been issued still glosses slightly over our situation. It says that there has been a considerable increase in the whole national level of output per man, particularly in the last ten years. I suppose we can say that it is a "considerable" level. It might have been better to say that it is far below the level that this Government, or, indeed, the last Government, would have hoped. We should have said this without seeking to make Party-political points. We can rely on Party-politicians, including myself, to make these points at the right time, but I think we could have had slightly rougher statements in this document. But I do not blame the
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Government for that because they did not produce it.
At the same time, it is not true that this country will fall away and be faced with disaster if we do not achieve the production levels we want. It means, however, that, over the years, we shall be a declining nation, and like a declining business morale tends to sink, inventiveness tends to go, energy tends to go, and the whole dynamic of it goes. Our problem is somehow to get some dynamism into our industrial life in those areas where it is lacking. I entirely agree with the noble Lord, Lord McCorquodale of Newton, and others, who point to the extremely notable leadership of certain firms—certain large firms and, indeed, contain small ones. I sometimes think that they carry almost too heavy a load in the leadership which they give. It is notable how much of a lead firms like I.C.I. and Shell, and some of the other big companies give—and, indeed, the firm of the noble Lord, Lord Marks of Broughton. Yet we still see large sections of industry who fail to follow that lead, who are content to be all right, who are content with figures which enable them to carry on, and who somehow fail to be driven out by competition.
I was very interested in the figures given by my noble friend Lord Walston Personally, I am a little suspicious about figures on margins, and figures on markups as well, which at times are not always truly comparative. There will, of course, be more opportunity for comparison if we go into the Common Market. It is a fact that recently the Government have concerned themselves with certain sections of industry, like the shipbuilding industry, and there have been, over a period of years, a number of investigations which have revealed situations that could not easily be put right, which it was difficult for that particular industry to put right and which, (to some extern, depended for their progress on a change in national outlook and a greater supply of educated management.
I should like to make the few remarks I have to make mainly on this question of the responsibility of management. I do not know how we can put across all the things that the best management have to know. One has to appreciate also the extreme variety, not only in standards

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of management, but in the obligations imposed on management. One of the difficulties in the spirit of industrial seminaries, (the British Institute of Management conferences, and so on, is the enormously wide spectrum, and the fact that certain things that will be familiar and relevant in one field will have relative little significance to others, possibly even in the same field, but doing slightly different work, or being of a different type of organisation.
One of the things the British Institute of Management have been stressing in their publicity in connection with this year has been the importance that management should examine itself. It is extraordinarily difficult for management to look at itself. It gets very quickly into a pattern of its own. We all tend to sit, and even if we do not sit but run round at high speed, we tend more quickly to fall into a sort of pattern. One of the problems is how we are going to enable a more critical approach to find the time and the energy to overcome this. I have one very short suggestion which I would press very hard at all times, and that is that management—and I am talking purely in terms of management—ought to take much longer holidays. It is a fact that managements do not take the time off. They are proud about not doing so. They are proud about taking papers home at the weekend—and you have to take papers home because very often you cannot get peace in the office. But I should like to see all managements taking very much longer holidays than they do. I believe this would be a contribution to increased productivity. That is my own particular solution.
But how can one develop the critical approach? Here, whether it comes from the British Institute of Management or the British Productivity Council, I should like to see more experimental techniques and the development of the built-in critical machinery which some firms have and which enables them all the time to review the work. This means not only reviewing the exact trading success and the cost of an activity, as is done in such detail and so effectively by most firms (although some firms do not even do this), but reviewing it from other criteria also. Where organisation and methods have been introduced there
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is still, I am afraid, far too much tendency to concentrate on the "M" side and not enough on the "O" side. Too many firms—and I speak with personal painful experience on this—fail to look at the very top. They fail to look at even their own board structure or top management structure, where the trouble may lie, not through faults of individuals but because of a faulty organisation.
Turning to the techniques of individual managements, I would say that we have had some rather moving remarks from noble Lords, particularly my noble friend Lord Geddes of Epsom, on the problem of personal relations. Here, again, one has somehow to get across an understanding both of modern techniques and of what human relations are. Too many personnel managers rely on statistics, and frequently the wrong statistics. They concentrate too much on turnover, the negative side, and not enough on the labour retention figures; and where they tend to move to a purely personal relationship, a warm, possibly patronistic approach, they do not know the statistics. Somehow these two have to be blended; they have to understand that in man management (and this, I might also stress, includes woman management as well; although, in my opinion, the management of women in industry is usually done better by a man) there must be a greater degree of understanding of the nervous strains to which men and women are subjected to-day. In my view, not enough use is made of proper medical techniques in examining people whose work is falling off. This applies particularly among managers. Very often decline in management performance can be put right in a number of ways; first of all by help; secondly, by a large bonus; and only in the last resort does the question of demotion, or, ultimately, actual medical treatment, become necessary.
I do not know how quickly we can get these understandings across, but of one thing I am quite sure: that is that the universities must—and we have said this before—play a bigger part in management education. I should have hoped that, as part of the National Productivity Year, there would have been some drive and emphasis on the academic side in developing not only management techniques and understanding but also the (training to which a number of noble

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Lords have referred. This, of course, involves more money for social services and social science faculties; and here, once again, we come back to the Government. For it is a lamentable fact that the social science side is still greatly inadequate for even the minimum amount of research that is necessary.
I look regularly at the various social science research projects which are illustrated, I think, in a special D.S.I.R. publication; and when one looks at the immense detail that is necessary in this sort of work to get anywhere at all, it is quite obvious that we are hardly touching the surface of this particular problem. But somehow, I believe, this can be done, and I think we can do this by realising that certain basic attitudes have changed, and are already changing; that management's position is not that of a purely father figure; that they must refrain from feeling a strong sense of being badly treated when they think something they have done is received with ingratitude. There is still a little too much expectation that people ought to be grateful for what is done by their bosses—and this is true at all levels. But gradually as we train people in the human side (and this is the case from experience) so, in fact, will they be able to use the more sophisticated tools which are quite useless at the moment to the unsophisticated management.
Several noble Lords—I think it was the noble Lord, Lord Luke particularly—have referred to the point that "Productivity" should cover the widest possible field. There is an impression that those who are not engaged in manufacture are indifferent to productivity. That has been suggested by many people, who sometimes say that the distributive trades are too large, and that they are not efficient enough. The noble Lord, Lord Marks of Broughton knows just how efficient distribution can be, and that productivity is just as important—indeed, perhaps more important—among firms on the distribution side who are progressive and determined to face up to the growing and intense competition which exists in distribution and some of which is not quite so evident in manufacture. It is obviously extremely important that there should be a high level of efficiency, or productivity, whether it
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is in the cutting of bacon, packaging or, the layout of goods.
The advent of supermarkets and specialised organised outlets for all sorts of goods is encouraging the development of modern productivity techniques and the same thing must apply to Government—local government and national Government. My noble friend Lord Crook of course made some interesting remarks about improvements in productivity, in the use of organisation and methods in the Navy and, indeed, all the Services. Here, again, I think the Government are able to give something of a lead by helping to make these techniques known. But, my Lords, I am disappointed that in this Year there are going to be no signs of boldness and experiments in regard to new industrial management techniques.
We have recently had a very disappointing Jenkins Report, clinging on to an old-fashioned view which I should have thought is becoming increasingly outdated, of the rôle of the shareholders. However, undoubtedly, it was valuable from its narrow field. But is it really impossible, short of living in a Communist country, to experiment more rapidly in new forms of industrial democracy? There are some experiments in this country—and I happen to be connected with one, and II can only say that, whatever its faults, it works—and there is a degree of participation which I believe could, with benefit, be extended much more widely. Would it not be possible even for the Government to talk to some of the nationalised industries, or to some small section, and say, "Will you not experiment and achieve greater individual participation?." There are dangers and difficulties; they have to work hard; it takes a long time; it needs infinite patience, and it entails risks. But certain important experiments have been carried out, and I should have liked to see something of the kind being tried in this country during this Year.
There is only one final thing I would say. All our efforts in regard to productivity will be of no value at all unless we can get a situation in this country and, indeed, in the world in which there is much greater liquidity of resources. If we look at the figures of the increase of national production over the last

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few years, we see how closely they follow the problems of balance of payments, and it is undoubtedly true that there is still in this country a great deal of unused resource, and there are many firms (who would be able to stimulate greater production if they were more confident and the Government were able to follow a more expansionist policy. This is not the time to go into the question of financial policy, but I am sure that, unless we can tackle this problem internationally, much of our efforts in this direction will in fact be very largely wasted.
7.8 p.m.
EARL WALDEGRAVE: My Lords, I am sure that not only we in this House but the whole country are grateful to the noble Lord, Lord Crook, for putting down this Motion which has given us the opportunity to discuss this important National Productivity Year. It is an extremely important project. The noble Lord, Lord Crook, opened this debate this afternoon on a very high plane. His speech had a very wide range, and this has been followed all the way through the debate by the distinguished speakers who have taken part. Indeed, there is considerable difficulty in replying to a debate such as this. I am very conscious indeed that I am neither a great trade union leader nor a great leader of industry. I have to attempt to reply, for instance, to the noble Lord who sits behind me, who has been a pioneer in quality control, and who is one of the supreme exponents of the application of productivity to shopkeeping, to which both Napoleon and he himself have referred.
Though I think I could also agree with the noble Lord, Lord Shackleton, who said that this may have been one of the best debates on this subject we have had in this House up to this point, I would agree with him up to this moment of time. Your Lordships House does excel at this kind of debate, where we have the advantage of speeches from great leaders of industry, whether they be trade unionists or industrialists. I, for one, think it is very pleasant that our House can distinguish itself in this way and fulfil a very important rôle in Government in being able to do so. I am sure that our discussions will have
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served to underline the importance of National Productivity Year, even though the noble Lord, Lord Luke, thinks that we have the wrong title. There is much jargon in all these matters, and I think that, with Lord Luke's help, we shall be able to correlate productivity with efficiency and understand what we mean.
I am glad that at the beginning of this debate almost every noble Lord who spoke referred to the very admirable, moving and cogent words which Prince Philip used in the foreword of this pamphlet. National Productivity Year is essentially, as has been said, a campaign by industry (the noble Lord, Lord McCorquodale of Newton, was the first, I think, to emphasise this point), and, I would add, by agriculture and, indeed, the whole economic community. The noble Lord, Lord McCorquodale of Newton, said that industry itself is doing this and it is just as well that Government does not interfere too much. This enables the campaign to be non-political, a co-operative effort, an effort backed by the T.U.C. and the employers' organisations; it enables this project to have the support of all the professional and technical organisations. This could not be so if the project were more directly Government sponsored.
May I say here that of course Government Departments will be co-operating, where appropriate, in their capacity, as they often are, of providers of services or as very large employers of labour. Generally they will participate in the local National Productivity Year committees just like any other big industry or employer of labour. But certain Departments, of course, will do more than that. The Department of Scientific and Industrial Research—and I was glad the noble Lord, Lord Marks of Broughton, paid tribute to that Department—will, through the research associations which it runs with industry, be arranging conferences to discuss work done to increase productivity.
Productivity is a rather diffuse and intangible subject. It covers such a wide field and so many spheres of activity. But it is one of the most important problems that face our country to-day. An improvement in our national efficiency is the key to our competitive power, our rate of growth and our future prosperity. This is not just a matter for

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a few technical experts, or for a few industries only: it is a matter which concerns us all. As I have said, so far as the Government are concerned, they will continue to do all that is possible to create conditions throughout the economy in which greater productivity can be achieved.
A number of noble Lords, quite legitimately and in no highly critical spirit, because the Party or controversial aspect has been kept well away from this debate, have raised points in regard to the economic framework set by the Government. The noble Lord, Lord Shackleton, felt that the Government might do more. I cannot and do not want to go into these details at this moment, but the Record of this debate will be before my colleagues, and these points will be read and seriously considered. I hope that in this way they will be met., But it is right to remind your Lordships that the National Economic Development Council which has been set up by the Government has started its work of examining ways and means of improving our economic performance and growth. But in the last analysis it is, as the noble Lord, Lord Marks of Broughton, said, on the factory floor, in the office, and, I would say, on the farm as well, that greater productivity can be achieved. Without the greatest efforts to raise efficiency, by management and workers in all these places, all that the Government can do will be frustrated, and all the framework that the Government have set will be ineffective.
I will not go over again what the noble Lord, Lord McCorquodale of Newton, said, with his experience of the actual work of the British Productivity Council. Not only is he a Vice-Patron of this Year, but I believe that he is a past chairman of the Council. I agree with everything he said: I think that great credit must go to the Council for the increased awareness that exists today throughout the country of the many ways in which greater productivity can be achieved. I was glad that he paid a tribute to Mr. Harry Douglass, to Sir Charles Norris and to Lord Nether-thorpe, whom we could have wished to see in his place to-day. They have all had much to do with this Council.
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The aim of the Council, and the aim of the National Productivity Year, will be to focus attention on all possible means that lie within the capacity of management and workers throughout the country to raise efficiency and lower costs. It is therefore particularly encouraging that the Council have secured widespread support for this project, so that it will be a really co-operative effort in which trade unions, employers' associations, the regional and local representatives of nationalised industries and Government Departments, local authorities and professional and other organisations will play a part. It is in the many activities which will be arranged throughout the length and breadth of the country by these bodies and the local productivity groups that the plans will have their major impact. I am confident that the many events that are being planned during the Year will make a very real contribution to the achievement of the task of increasing our productivity. The Government warmly welcome the initiative of the British Productivity Council in this major non-political undertaking and wish it every success.
At this late hour your Lordships will not wish me to try to reply in detail to every noble Lord who has spoken. But some of the points that have been raised seem to me so interesting and important that I feel I must attempt, at any rate out of courtesy, to reply to them, though briefly. The noble Lord, Lord Crook, in his remarkable speech with its very broad range, asked me one specific question. In answer to that question, I do not dissent from the statement, made, I think, by the Minister of State to the Board of Trade, that our exports will have to increase by 10 per cent. if we are to achieve our target. I have only one very slight criticism—indeed I think the noble Lord's speech was the only speech during this debate in which there was an interjection from anybody else. I do not want to overstress this, but I should like just briefly, and courteously, I hope, to touch on that particular point on which the interjection was made.
I agree that we must avoid complacency at all costs, but also we must not overstress the case in our comparisons. I was interested, when I was studying these figures, to note that over

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the past ten years output here has increased by 2½ per cent. per annum, of which the 2 per cent. increase is an increase in output per head and the other ½ per cent. is due (to the increase in the population. I was interested also to compare, in the rather striking graph on page 4 of the pamphlet, the outputs of other countries. I think that we must not necessarily be too pessimistic about the picture that is shown. I should like to quote also from the Bulletin for Industry which the noble Lord, Lord Crook, himself quoted. It says:
"There have been special circumstances favourable to growth in some countries. In France, where even by 1950 industrial production was scarcely higher than in 1929, there was much ground to make up, and it has been possible to exploit latent potentialities in productivity. In Germany, where there was still some under-employed capital and much unemployed labour in the early fifties, additional reserves of labour were available also in the relatively large agricultural and handicraft sector of the economy and in the immigrants from the East, who constituted an exceptionally mobile and productive element. At the same time defence expenditure and overseas aid were also a smaller burden on the economy than in Britain."
I think that for a balanced picture and for the record, the noble Lord, Lord Crook, would not mind my reminding him of that.
We must also remember that we, perhaps more than some other countries, are more mature economically, and that a greater proportion of our gross national product must come from the services which, by their very nature, are not likely to be able to increase quite so rapidly as the manufacturing or production side. This has been clearly demonstrated in the United States of America. But I fully agree with the noble Lord, Lord Crook, on what he said about the Common Market: that, whether or not we go into the Common Market, probably our economic survival, and certainly our prosperity, must depend largely on how efficient we are.
The noble Lord, Lord McCorquodale of Newton, in his contribution, made one point which is interesting and does sometimes confuse especially the workers. With regard to increased production, for example, in textiles, a man might say, "How can this be right, when we are already suffering from overproduction?". But surely here it is fair to say that there is some slight confusion
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of thought. I detected this once or twice in the debate. There is a difference between productivity and production. We must not confuse the two. Higher productivity should mean a reduction in costs and a raising of quality; it is, therefore, highly beneficial at any level of output. It must also help more than anything else to extend the size of the market and, therefore, to help to correct any so-called over-production.
There were most important contributions from the noble Lords, Lord Geddes of Epsom, Lord Baillieu and Lord Citrine. I entirely agree that probably the most important factor in the success of the drive for national efficiency is the solution of the human problems and of the misunderstandings which still arise and always have arisen but which we hope will be minimised. The National Productivity Year is aimed at removing all these misunderstandings which exist on both sides of industry. I am sure that the noble Lord, Lord Geddes of Epsom, who said when he opened his remarks that he was starting out on rather a narrow path, would not wish his remarks to be taken or accepted as any form of pessimism, because indeed he ended his admirable speech with an example of an extremely forward thinking and remarkable achievement, the Esso Fawley Agreement. This, as he said, was achieved as the result not of any flash in the pan, not of any bright idea, but of long and patient negotiation, which is how these things must come about. He was right in saying that unless we can get the human relations right, and unless we can get both the management and the man who is working the great earth-moving machine to realise that he does have some part in the whole of this productivity campaign, we shall not succeed.
It interested me that the noble Lord, Lord Baillieu, said that at this stage we must turn our attention in the development of this country, perhaps more than we had in the past, to the distributive and service trades. I am sure that this must be right. I was interested, too, in this connection in the contribution made by the noble Lord, Lord Marks of Broughton. The noble Lord, Lord Citrine, who warned me that he would have to leave, mentioned that he was one of the people who—properly from his point of view, I concede—was critical

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of Government policy. He queried whether the wages policy was understood by the worker, and whether the workers realised that they could, and should, get their share by increasing productivity. These are remarks that will go forward to my colleagues and Ministers who are involved, and they will be studied with the care which they deserve.
Now if I may, I must turn for a moment to the noble Lord, Lord Walston, to whose contribution I was looking forward because, as an agriculturist myself, I hoped that he would speak about agriculture, and indeed he did. I expected that when he spoke about agriculture he would be able to say that the record not only of productivity but of industrial relations in agriculture was a fine one. He said that. But the sugar came before the pill, and it was in the middle of his speech that he said, "Now I am going to take a curious turn in the opposite direction". I think that I quote his words aright. He took "a curious turn in the opposite direction", and we heard some interesting figures about margins. I have taken down his figures and I will study them, and perhaps we can talk about them or correspond about them later. All I will do at the moment is to borrow words from the noble Lord, Lord Shackleton, and say that one can sometimes be a little suspicious of these figures about margins, but only gently suspicious. I have not examined them; I will examine them in due course.
The noble Lord, Lord Luke, answered the aspersion that we have lost our talent. You do not get far if you start on a campaign in a spirit of pessimism. Change sometimes comes rather hard to us in this country. But if we realise that we must change, and if we are confident that we have not lost our talent, then we shall succeed, even in these most difficult matters. We have taken the point in regard to "efficiency" and "productivity", but I think that the noble Lord is too late to change the title either of the Council or of the Year. But I have no doubt that the Council and the organisers of the Year will bear in mind what he has said.
The noble Lord, Lord Shackleton, said that management ought to take much longer holidays. With that view
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I would entirely agree, and I say that quite seriously. I think it is very nearly time we took a short holiday now ! But this is not merely a joke, but is a matter of some importance. I remember, during the war, how when one was working very hard—I personally was working in an administrative capacity in one of the Armed Services; I was not fighting, but I was fighting with a pen—one felt that one ought to give everything one had and one took no holiday but worked seven days a week. This was not an efficient way of working. There were certain commanders who turned us out to play, and I am sure that they got better work out of their troops, whether they were clerks or soldiers, than the commanders who kept us at it day and night.
Lord Shackleton is an old enough politician to know that there is no gratitude in politics. It was Disraeli who said that one got no thanks in government, because if things went wrong people blamed the Government, but if things went right they thanked God. I am sure that the noble Lord, Lord Shackleton, does not suppose that anything has happened recently to alter the truth of that great adage.
My Lords, I have referred to most of the speakers, and I would leave to the end what I think has been the most important point that many speakers have raised—that is, the question of human relations. I fully agree with the importance which has been attached to this point by so many noble Lords, and particularly the noble Lord, Lord McCorquodaile of Newton. It is no good trying to increase productivity, it is no good trying to introduce better machines or new techniques, unless everyone concerned knows What is being done, and why. Surely this is the very point which the British Productivity Council and the National Productivity Year must stress and are stressing. This is what it is all about, and it must be made clear to all.
My Lords, I am sure that the suggestions and comments which have been made by noble Lords will be carefully examined, as I have said before, by all who have the responsibility in Government and by those responsible outside for carrying through this project. So far as points have been raised which affect the country's productivity, but which

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are not within the field of the present plans for the National Productivity Year, my right honourable friends will, I am sure, pay attention to the comments which have been made—for example, Lord McCorquodale of Newton's point on taxation, and Lord Marks of Broughton's point on depreciation allowances, and so on. I will not attempt to answer them now, but these must be taken into consideration by those whose responsibility it is to consider them.
In conclusion, I would stress the need for the efforts which the organisers of the National Productivity Year are making to be supported at every level and in every quarter throughout the country, so that their plans can achieve their full effect. I am sure that this support will be forthcoming; and if by our debate here we have helped in any way—and I really think we have—to make this more certain, we shall have achieved a very great deal.
LORD CROOK: My Lords, there remain just two things for me to do briefly: first, to thank all those noble Lords who have been so kind as to take part in what I feel has been an excellent debate; and, second, to ask your Lordships' permission to withdraw the Motion.
Motion for Papers, by leave, withdrawn.

PORT OF LONDON BILL
Reported, with Amendments.

LETCHWORTH GARDEN CITY CORPORATION BILL
Reported from the Select Committee, with Amendments.
House adjourned at twenty-four minutes before eight o'clock.