4.22 p.m.

Mr. Dye (Norfolk, South-West)

I beg to move, That an humble Address be presented to His Majesty, as follows: Most Gracious Sovereign, We, your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom of Great Britain and Northern Ireland, in Parliament assembled, beg leave to offer our humble thanks to Your Majesty for the Gracious Speech which Your Majesty has addressed to both Houses of Parliament. It is indeed a very great honour to be called upon to perform this task. In view of the fact that since July, 1945, my time has been shared between attendance at this House and my constituency, membership of the Norfolk County Council and of the Swaffham Rural District Council, and in doing a spot of farming, I feel that each of these bodies, and agriculture in general, share in the honour that this occasion brings.

If I might make one reference to the recent Election it would be to say that in my opinion the electors took their duties seriously and with a quiet good humour. I feel sure that this House will approach its deliberations in the same spirit. My constituency includes a large part of the Fen district, part of the new Thetford Forest, and a large area of mixed farming which is typical of our Norfolk agriculture. Politically, of course, it is one of the most important divisions in the whole country. From the point of view of the national economy it makes no mean contribution. All classes of fresh foods in their seasons flow with constant regularity to the areas of big populations. Increasing quantities of foods are being canned, while from the Forest there are pit props for the mines.

Our West Norfolk farming is the most highly mechanised in the whole world. With more tractors to the square mile and the latest scientific discoveries being put into effect, we have made remarkable progress. Both farmers and workers are as keen as mustard, and happier than they have been for three-quarters of a century. I am sure that the whole agricultural community will welcome the renewed determination expressed in the Gracious Speech further to expand our production of food at home.

My right hon. Friend the Minister of Agriculture has gained the confidence and respect of all those in the industry, and I feel sure that they will respond to any further demands he may make upon them. In farming, we know everything will not always work out perfectly. When I looked out of my window yesterday morning the pigs were out and thoroughly enjoying themselves on the oats I drilled just before the Election, and if this weather continues our people will be full out on the work of drilling barley and other spring crops. Some days will be better than others. Unexpected difficulties will crop up. Farming is like that. We are, therefore, a tolerant and good natured people, even where Governments are concerned.

I should like, however, to draw the attention of the House to the possibilities that may arise as our own output increases and greater imports of food become available from non-dollar sources. We are determined to maintain a system of guaranteed prices for our principal farm products. But the producers of other commodities, such as fruit and vegetables, are just as essential to our national economy. Most careful coordination between all the Ministries involved is desirable if the imports are to be regulated in such a way that losses of home produce are to be avoided.

We can congratulate the United Kingdom on some astounding increases. Milk production, for instance, during the month of January, reached an all-time record for that time of the year. There is no longer any need for restricting supplies to customers. The total cattle population of the United Kingdom in June. 1949, was nearly 10,250,000—over half a million more than in 1947 and one and a quarter million more than in 1939.

The number of sheep is on the rest again, having reached 19,500,000—an increase of 2,750,000 in two years. Over the same period our pig population has increased from 1,500,000 to 2,750,000. Perhaps the most spectacular increase has been among poultry, whose numbers have risen by 25,250,000 in two years. In June last we had 20 million more poultry on our farms than in 1939. What a welcome addition they make to food supplies to the housewife and caterers. In this respect it is as well to remember that a bird reared in this country is worth two imported. From the very day the bird is hatched it is contributing valuable humus and plant foods to the soil. There is nothing like domestic poultry for enriching the earth. Last century people spoke of the "golden hoof" when referring to the value of sheep on the land, but more recent experience has demonstrated the superb value of poultry for this purpose.

Our Norfolk turkeys have for long taken pride of place at Christmas. Before the war intensive duck farming was rapidly increasing on land that was in danger of going out of cultivation. By the method of combining stock with cropping both did exceedingly well. As more feedingstuffs become available I can see the possibilities of interesting developments. Ducks greedily devour wireworms and leatherjackets, thus ridding the soil of these pests. It may well be that those who eat the ducks can readily assimilate the robust characteristics of these other creatures. If so, may I commend to His Majesty's Ministers the value of duck and green peas for a regular place in their diet?

I welcome the indication that the Minister of Food will make a practical and human approach to his work. These islands can produce half of all the food we need. Consequently, there is no other part of the world that is so important to him as a food producing area. If, then, I may make a suggestion it would be that he should take an early opportunity of seeing the national representatives of both the farmers and the workers. asking them right in and letting them talk about their difficulties. I am quite sure they will gladly listen to him. A happy solution of the problem of food supply will be their salvation, whereas an unsatisfactory solution can be their undoing. We have had examples—more so before the war than since—when untimely imports of even a comparatively small amount of a particular commodity has caused a portion of the home product to be unsaleable.

When I called at my butcher's shop on Friday for the week-end joint I saw an aspect of his problem. He had three qualities of beef in the shop. He had a very nice piece of home-killed beef, and needless to say my choice was from that. There was also a quarter of prime imported beef. Then he pointed to the third. It was imported cow beef. Being a Yorkshireman he remarked, "We can do nowt with that, it's not even good for sausages." If the butcher cannot do justice to his trade the customers will not be satisfied. I am, however, glad to see the increasing quantity of home-produced beef. Prospects are very much brighter in that respect for the future. Together with the improved quality of our Yorkshire puddings and a plentiful supply of vegetables, the dinner table will be all the more attractive.

There has been a very interesting experiment in my division in the erection of a crop drying factory. It has cost dollars, but this factory has turned out, in its first season upwards of 3,000 tons of dried meal and cubes made mostly from grass and lucerne. The resulting product is of a very high quality. This produce is from land which was derelict before the war, and it makes a valuable contribution to our requirements in feedingstuffs.

The efforts of the Swaffham Rural District Council in meeting the housing requirements of their people are worthy of the notice of this House. By the end of this month which is the close of the financial year, they will have completed building 240 permanent houses since the end of the war. Forty-one more are under construction, and tenders for a further 26 are in hand. These figures should be viewed in relation to the population, which is only 8,000, and to the prewar building efforts, which reached 230 by 1940 after having made a start before 1914. During this post-war period, with all its difficulties, this Council will have built 10 more houses in these years than in the years before the war.

It should be noted that these post-war houses are of a much higher standard. All have three bedrooms, a piped water supply, electricity and modern sewage disposal, whereas those built before I became a member of the Council in 1936 had no piped water, bathroom, sink or even drains. The lavatory was the usual little house, a respectable distance down the garden. Now, not only have these houses a piped water supply but it is also laid on to neighbouring privately owned houses. That, however, is not the full story on housing. Farmers and landowners are now building in greater numbers. I know of one large farming company that has already completed or has under construction 19 new houses for its workers. They not only believe in ploughing back some of their profits for new farm buildings, but also in ploughing them back for the better accommodation of their workers.

There is one other matter concerning Norfolk to which I should like to refer. We have already purchased six large houses and are beginning the work of converting them into old people's homes. This work was begun when I was chairman of the Public Assistance Committee and, later, of the Welfare Committee. One of these properties was formerly the home of a Member of this House. It is one of the dearest hopes of my life to see this work completed. It is a costly business, but my earliest recollections are of our elderly workers and widows having to apply for Poor Law relief. A meagre half-crown a week was all they were allowed. Just how they kept body and soul together I cannot understand. Today, we have set a standard for those who enter into well-earned retirement that will not be easy to maintain. Yet it must gladden all our hearts to know that an increasing number of people can spend the evening of their days with every comfort in such lovely surroundings. If I do nothing else as a result of 30 years of public work I shall consider the part I have played in providing these modern homes for old people to have been well worth while.

The associations connected with gardens and allotments will be interested in the reference in the Gracious Speech to amending legislation. A former Member for South-West Norfolk, the late Sir Richard Winfrey, took an active part in earlier legislation on both allotments and small holdings. I share his interest in these matters and hope to see further progress made.

The extent of the water and sewerage problem in rural Britain has been underestimated in the past. The qualified technical staff to prepare and carry out schemes has been inadequate. But a great deal more knowledge is now available than at the end of the war. From the progress that has already been made we can see more clearly the next steps that should be taken to overcome the difficulties surrounding this problem. I think it would be unwise, at this stage, to say "Go ahead" with water supply but to defer sewerage schemes. In a number of our small towns canning factories and other developments disposing of large quantities of sewage have created an urgent problem. Before any decision is made in allocating money for either of these two important matters I trust that the Ministry concerned will consult with the county councils involved, who have a general oversight over the district councils in these matters.

Finally, I think the whole nation is anxiously waiting to see how, in the present circumstances, this House settles to its job. What matters most is that we should remain a living example of how a mature democracy works. To overcome our economic and financial problems and to safeguard the welfare of our people must be our constant aim.

4.40 p.m.

Miss Bacon (Leeds, North-East)

I beg to second the Motion so ably moved by my hon. Friend. If I differ from him at all, it is in his assumption that Norfolk people know anything whatever about Yorkshire puddings.

In conferring upon me the honour of seconding this Motion, I feel that a triple tribute has been paid—a tribute to women, a tribute to my constituents who form a highly important section of the great city of Leeds, and a tribute also perhaps to those teeming centres of the north which always show such solid good sense. I must not enlarge upon how in recent weeks they have shown solid good sense, or I shall be in the realms of that controversy which must be avoided on these occasions.

Leeds is the star of the north amongst cities. It twinkles in a hundred different ways, everyone of which adds to the industrial lustre of our land. I know that there are other small places in Yorkshire, like Bradford or Sheffield, which think that they have some claim to be considered the country's leading towns, but that is not so. A short time ago I heard about a letter which arrived from abroad addressed simply "The Mayor of Yorkshire, England," and it was delivered promptly by the postal authorities to the Lord Mayor of Leeds. The view taken in Leeds quite definitely is that "Leeds leads and all the others follow." People from the south sometimes think of our northern industrial cities as being ugly and dirty places. It is quite true that we have our share of smoke and grime, but there is a well-known Yorkshire saying, "Where there's muck there's money," and it is quite certain that our northern industrial cities have contributed a large share to the industrial prosperity of our country.

No other city than Leeds has such an astonishing variety of activities. In Leeds we make clothes, for Leeds and tailoring are synonymous terms; indeed, Leeds is the world's largest ready-made clothing centre. I have in my constituency the biggest clothing factory in the world, whose moderately priced but durable suits have become a household word—suits with which, perhaps, even hon. and right hon. Gentlemen are not unfamiliar. In Leeds we make clothes of every kind, for export as well as the home market. We make woollens and worsteds for export, and we also have our great engineering trades which send machinery to every part of the world. We have many other industries, too, from the making of boots and shoes to the canning of fish. It would, indeed, take a very long time to mention all the industries in Leeds. It is certain that in the last few years the people of Leeds have worked hard and played a very great part in the post-war industrial recovery of the nation.

Leeds is a city with great civic pride. We have pride in our parks, our university and our medical school; we have pride also in our shops, which are second to none, and even in our rattling noisy tramcars which always get you there, no matter what the weather. The Leeds City Council has taken full advantage of the powers conferred upon it by the Government to provide cultural activities for its citizens; we have our art galleries and our civic theatre, and last but by no means least our municipal orchestra, the Yorkshire Symphony Orchestra. I believe that this orchestra is the only one which is truly civic in the country, all its players are employees of the City Council. Today happens to be a great day for them because this evening they are giving their first performance in the Albert Hall. The success which this orchestra has achieved and the quality of its music disproves the theory that public enterprise stifles creative art.

The visitor to Leeds, after the first shock of being called "love" by bus conductors and shop assistants, finds a friendly, generous and hospitable people. It may be that those are characteristics of all Yorkshire places and all Yorkshire people, but in Leeds there is a broadminded and tolerant people. In one road in my constituency there are the Church of England, the Nonconformist chapel, and next door to each other the Roman Catholic church and the Jewish synagogue. All those who attend these various buildings and follow their differing creeds live together amicably as good neighbours, and in this respect Leeds teaches a lesson and sets an example to a wider world.

I listened with some interest to what was said by my hon. Friend the Member for South-West Norfolk (Mr. Dye) about housing conditions in the rural areas. We have in Leeds many new and up-to-date houses. We have in my constituency the famous Quarry Hill flats, the largest single block of flats in Europe, but we have also in Leeds many streets of two-roomed back-to-back houses—a legacy from an era when builders built quickly investment property for the purpose of making money quickly. In such circumstances, overcrowding is inevitable and produces, as in other large cities, not only a housing problem but a social problem as well. I know that the Government will do all they possibly can, as they have done in the last few years, to build more new houses so that we can alleviate this condition.

I should like to say a few words about the women of our country. I am reminded of a remark by Dr. Johnson who said, "Nature has given women so much power that the law has wisely given them little." That remark would not have been made today. Our housewives, our factory workers, teachers, nurses, shop assistants, and other women in a hundred different occupations have done a great deal for this country in the difficult war and post-war period. During the last few years our housewives have co-operated to the full with the Government in order to make our fair shares policy work, and they will continue to co-operate so long as they are getting a fair deal.

Housewives in the last few years have appreciated the regular weekly wage packets which their husbands have brought home to them, and they will welcome the reference in the Gracious Speech to the maintenance of full employment. I believe that today women are more politically conscious than ever before. There was a time when people used to go canvassing and the women said, "I must wait until my husband comes home and see what he is going to do." Today women vote independently of their husbands, and indeed the recent election has brought to light cases where the husband has said, "I must wait and see what my wife is going to do." I am disappointed that so few women have been returned to our benches in the House of Commons, but I know that my women colleagues will more than make up in quality for their numerical inferiority.

This Session will naturally be historic. It is also going to be exciting. Every Division will be exciting. I am not at all sure that my right hon. Friend the Lord President of the Council and the Government Chief Whip will appreciate the excitement quite so much, but it is good to see in the Gracious Speech that the era of progress which began in 1945 is to go on. Like my hon. Friend who moved the Motion, I am pleased to see that we are to have improved water supplies, not only for the countryside, for the drought of last year showed that this was also of importance to the towns. The towns will welcome, too, the announcement that there is to be legislation on leasehold reform.

I was particularly pleased to see reference to improved medical education and to the midwifery services. I think we shall all welcome anything to improve the midwifery service to save the lives of babies and mothers. In the last few years our maternity mortality figures and our infant mortality figures have been very low. This rapid decrease has, it is true, been due a great deal to medical science, but not wholly; one important factor is the extent to which the findings of medical science are readily available to all.

Medical science is improving and so is physical science. Any advance in medical science can only be for the good of mankind. An advance in physical science can be for the good of mankind, but it can be for the destruction of mankind. It is, indeed, a terrible thought that the children whose lives we are saving today may grow up to a diabolic destruction which hovers on the horizons of mankind. I, therefore, welcome in the Gracious Speech the determination of the Government to persevere in the high task of saving humanity from the menace of the atom bomb and the hydrogen bomb. Unless their efforts are successful—and I pray that they will be—everything else will have been in vain.

4.53 p.m.

Mr. Eden (Warwick and Leamington)

It falls to my lot to extend the congratulations which the House on this occasion will, I am sure, most readily and indeed warmly extend to the mover and seconder of the Address in reply to the Gracious Speech. I thought I noticed in their speeches a warm-hearted loyalty to their constituencies which is certainly beyond praise. It was observable to an extent. perhaps, rather in excess of that to which we are accustomed from all movers and seconders of the Address, and this passed through my mind—was it just possible that the mover and seconder were not only grateful for the past but also had an occasional thought for things to come? At any rate, they gave praises so fully that if the President of the Board of Trade is looking for any salesmen for the products of either South-West Norfolk or of Leeds, I suggest there are possible dollar earners upon the bench behind him. In the meanwhile I, for one, suggest—and I hope the hon. Member for South-West Norfolk (Mr. Dye) will not take it amiss—that as he spoke so warmly of the turkeys and of the ducks, to say nothing of the green peas, we hope that somebody may perhaps find in him a candidate for the many vacancies which I understand exist at the moment upon our Kitchen Committee.

I observed in "The Times" last Wednesday a remark to the effect that this new Parliament would have "its niche in history as the frustrated Parliament." They went on to describe us as "this unhappy House." I must say that I do not agree with that description at all. Indeed, if I have to confess my whole thought, I feel very much less frustrated now than I did in the last House of Commons and I do not feel at all unhappy. In fact, I almost feel that the appeal I made in my election broadcast for the fifth freedom—freedom from frustration—has been granted to my hon. Friends on this side of the House. I hope we shall be forgiven for taking the view that the balance of Parliamentary forces is now very much more healthy and stimulating than it was in the years 1945–50.

I am sure you will understand, Mr. Speaker, that in a Parliament with a large majority it must inevitably seem to the Opposition that their arguments, however, excellent—and of course, as you know, they are almost uniformly excellent—could have but very little effect against the big battalions which could always be called together in support of any Minister, however harassed or hard-pressed he may be. However, some have moved along the line a little and we will not talk about that this afternoon. But the odds are now nearly even and the battle can be more fairly joined; and that surely can hardly be described as frustration.

At the same time, I admit that the fact that our numbers are now so nearly equal does place upon us all a special responsibility. The essential machinery of Government must not be brought to a standstill. In such conditions as these there would be no excuse for indulging in factious or fractious opposition and we have no intention of doing anything of the kind. [Laughter.] We have not, and hon. Members would be wise to accept that assurance without ribald laughter. The King's Government must be carried on, and while, therefore, we must reserve the right to criticise and to move, for instance, to reduce items of Government expenditure, should we wish to do so, or to take other similar action which forms part of an Opposition's duty, it is not our purpose to seek to deny to the Government its essential requirements in supply.

Much the same can be said in respect of foreign policy—the broad aspect of foreign policy. I have seen it remarked in the Press of a number of friendly countries, notably the United States of America and France, that one of the consequences of the narrow Government majority must be to weaken this country's authority in world affairs. I see no reason at all why that should be so. On the contrary, I should hope that exactly the opposite would result, that our foreign policy would be strengthened. I would hope that the even balance of parties in the House will encourage the prosecution of a strong and, indeed, of an imaginative foreign policy. It is certainly our desire to see our country playing such a part in world affairs, in close partnership with the other members of our Commonwealth and Empire, and for our part we on this side of the House will be ready by active support or by constructive criticism to do all in our power to help bring this about.

Such an undertaking, of course—and the Prime Minister, I am sure, would agree—involves no forfeit of the rights and duties of the Opposition, but it does involve, as I see it, in the special circumstances of this Parliament, an obligation to discuss world issues with the understanding that the responsibility on both sides of the House is the greater because our numbers are now so nearly matched. That is what I submit to be the position.

I must preface my remarks on the international situation by saying that it is for us a happy conjunction of events that the opening of this Parliament should coincide with the visit to this country of the President of the French Republic and Madame Auriol. The President and his wife will indeed be welcome to Britain—welcome for themselves, for the gallant and friendly nation they represent, and as an expression of that close understanding between our peoples which is the foundation of our foreign policy.

Shortly before the General Election the Foreign Secretary returned from the Colombo Conference. We hope that in the course of this Debate we shall be given some further account of what happened there and of the Government's intentions and purposes in respect of Asia. The Colombo communiqué referred to that Continent as "the main focus of interest and an area of special urgency." I do not think there can be much doubt about that in anybody's mind. As I warned the House about a year ago when I returned from South-East Asia, there is a dire need for co-ordination of our policies in that area, not only with those of the countries of the Commonwealth—which has presumably been done now by the Colombo Conference—but also with those of the United States and France and other closely interested countries.

Progress so far has been painfully slow, and the Gracious Speech contains scarcely a hint of any further joint endeavour. In fact, its account of the international scene as a whole consist of a series of unrelated sentences with no indication of a common theme running through them—[HON. MEMBERS: "Oh."] Well, I could not find it; I hope we shall be told what it is—nor of a firm purpose which is to be vigorously pursued. If there is a theme which I have not discovered, I shall be only too glad to be told in due course in this Debate.

The point I want to emphasise is that if we are—as the Government presumably propose to do—to build an effective barrier against Communism in South-East Asia, we cannot do it on the basis of isolated treaties alone. It cannot he done that way. We have got to see whether we can produce an effective alternative way of life that will appeal to the men and women in those lands, just as Communism undoubtedly appeals to some of them because of its attempt to identify itself with independence from the foreigner. That is not an impossible task, but it is a very difficult one, and it needs constructive effort and a common plan; and the longer we delay in reaching agreement among the countries that share our view, the greater the danger to the whole Continent of Asia and the higher the price the freedom-loving countries will have to pay—if we are to make our contribution effective.

That is why I say that we welcome, for instance, the initiative of the new Australian Minister for External Affairs at Colombo in putting before the Conference what, I believe, is now called the Spender Plan for collective Commonwealth effort to improve living standards in South-East Asia. That, I am sure, is the right way—the way we should travel; this, I am sure, the means we should use; and we look forward to hearing more about that in detail.

In the meantime, I must say again to the House that that task is a very urgent one. World events have not stood still while we have been indulging in our General Election, and time is not on our side in South-East Asia. So I ask the Government on that; are we right in thinking that the United States are prepared to co-operate in what has been called the Spender Plan? Are they joining with the Commonwealth in working it out? If so, is any meeting contemplated for that purpose, and how soon will there be such a meeting? Is it to be in Canberra in the spring, or when? And how wide is the range it is to cover? Can we be assured that every effort is being made to follow through this Australian initiative at Colombo?

Few things in the world today, in my judgment, are more important than the position in South-East Asia—and pretty disturbing some of the recent developments have been. Look at the position in Indo-China. We recognise, and the United States recognise, I think rightly, the Government of Bao Dai. Meanwhile, the Soviets, on the other hand, have recognised the Communist regimé—action which must be pretty difficult to reconcile with friendly relations with the French Government. All these developments emphasise the need for urgency, and I hope that before this Debate on the Gracious Speech is finished some full statement will he given from the Government about that situation as a whole.

Now, to come nearer home, there is one foreign country I want to speak about briefly tonight, and that is Germany. I think that many of us have felt for some time past that the most realistic prospect of Germany's peaceful development lies in trying to bring her into friendly partnership with her neighbours in Western Europe. I agree with the United States High Commissioner. Mr. McCloy, who said, The idea of Western European consolidation presents to the average German, and particularly to the youth, the best hope in the future. There has been much talk recently in Germany about security. I think it is right to say—and to say from these benches—that our concern in this matter is no less than Germany's, but that we do approach it on a wider basis, that is the security of Europe. It is not surprising that Germans in the west should be sensitive to the organisation of such bodies as the Volkspolizei in the Soviet zone. It is clear enough, I think, that this force is para-military in character and that many of its members are forcibly enrolled. On the other hand, the creation of armed forces in Western Germany would provoke very serious problems of its own, and the new President of the Federal Republic has shown clearly that he understands that.

Certainly, any such action would immediately reinforce Soviet propaganda. All the satellites would be told that Germany is a potential aggressor and is being, encouraged in that role by the Western Powers. So I say that all these issues must be treated with discretion and fairness. But this, at least, is clear, that if Germany is definitely to have no armed defensive forces of her own, then a special responsibility falls on the Western Powers in respect of that territory, and that responsibility we have to be able to discharge.

Finally on foreign affairs, there is one other aspect of the international situation which I cannot ignore, and that is the treatment which is being meted out with increasing severity to British subjects, and even officials who are supposed to enjoy immunity, by satellite countries behind the Iron Curtain. There ought not to be any doubt in the Kremlin or anywhere else that these events create indignation here—intense indignation. What their purpose may be I cannot judge; but this, at least, is certain, that British opinion, and I believe, opinion in every other free Western nation, will never allow itself to be intimidated by tactics of that kind. In any fit and proper action the Government chose to take in these situations they will have our support.

Now let me turn to the domestic scene, in respect of which it seems to us that the Gracious Speech is more remarkable for what it does not say than for what it does say. Nobody, I suppose, is going to dispute the seriousness of the economic problems which now confront the nation—mentioned in only a little tiny paragraph. Those problems, in their turn, depend upon the financial policy of the Government. We have been given singularly little indication of that for a long time past, so perhaps I may try to contribute our view of the situation, even though I may be held to be anticipating the Budget Statement, or even may seem to some to prove contentious—that would be quite dreadful—in discussing the terms of the Gracious Speech I hope I may be forgiven if I do

It seems to us that our first task is to do battle with the growing threat of inflation. That threat has grown no less in the weeks since the election began. It penetrates into every corner of our economic life—like the London sunshine today or the London fog more often. It is expressed in rising prices.

Mr. Henry Hynd (Accrington)

Rising dividends.

Mr. Eden

I am not defending high dividends. If the hon. Gentleman wants to know our attitude to dividend limitation, I am in favour of it being continued. We do not escape from these real issues by hurling party gibes.

I say that inflation expresses itself in terms of high prices. No one in the world can deny that. That, of course, creates for everyone a consequent wages problem. There also enters into it a lamentable falling off in private savings. Seen from abroad, how does it look? It looks as if the standing of the pound sterling, our dependence on foreign aid, and our balance of payments—all these difficulties in the dollar area—are aggravated by inflation. I do not think there can be any dispute about these things. They will all be influenced, and some will be determined, by the financial policy which the Government decide to pursue. I say to the House on this first day, that in our judgment our first duty is to do all that we can to prevent a further rise in prices at home. But things being as they are today, who can doubt, unfortunately, that the cost of living will go up further?

There are a number of problems, about which we hope for enlightenment in this Debate, which are only too likely to affect the cost of living. There are new discussions on agricultural prices which have only just begun—[Interruption.] I am not criticising that. We do not know what the results will be. I do not know, and I do not suppose the Minister does yet. We can at least be sure that they are not going to reduce prices to the consumer.

Then there is the position of the railways, which have applied to the Transport Tribunal to be allowed to raise their freight charges. No one can blame the railways on that account. It is not in the least surprising in view of the losses which they have to carry now, running into something like £500,000 a week. Of course, they will have to ask for increased freight charges. If they get them, we have been warned that the result will be an increase in the cost of coal and other materials, and, of course, increased costs for all who use the railways. Those are all conditions which are quite futile to ignore, and they have their effect on this inflationary spiral. I do not know what the Tribunal's findings will be, but one result will be that we shall not see cheaper freights.

On top of all this, we have still to feel the full effect of devaluation. Import prices have risen by more than 10 per cent. since last December. Wholesale prices are also higher than they were, and they are still rising. Retail prices have only gone up one point. I do not suppose that there is anyone who takes any permanent comfort from that. The general tendency is that a rise in wholesale prices and import prices is followed, unhappily, by a similar trend in retail prices. These rising prices seem to emphasise the two main problems with which this Parliament will have to deal. With rising prices, the wages dilemma, the cost-of-living dilemma, becomes every month more serious. There are claims by many of the unions—the N.U.R., the Confederation of Shipbuilding and Engineering Unions and others—who have put in demands for increased wages. If the cost of living continues to rise, some at least of these claims are going to be very hard to resist.

If we look beyond these shores—and this I want to emphasise to the House—is it not beginning to be true that while prices are still rising here, in other coun- tries they are beginning to fall? [Interruption.] No, not in France. [Interruption.] No, not Germany; the hon. Gentleman is wrong. The most important is the United States. If the House would like to have these figures which I looked up this morning very carefully—[Interruption.] This is a serious argument—the position is this: In 1947—these are the figures of the Monthly Bulletin of Statistics of the United Nations, so they are about as respectable as we can get—the basic figure in the United States was 176. So was ours; exactly the same. Since 1947, the American figure continued to rise a little, and then dropped. The American figure for the last available month, November, was still 176. Ours is 221. [Interruption.] I am only drawing attention to a tendency in the situation which this House must consider. I am not blaming or criticising anyone. For heaven's sake, cannot we consider these matters, realising that they are of some importance?

I am drawing the attention of the House to the fact that, be it for good or ill, there is in the United States now, compared with 1947, a level of prices about the same as in 1947, whereas ours has continued sharply to rise. Those are the figures. If they can be challenged, let them be challenged. Canada, Sweden, Switzerland—all these countries are beginning to show—I do not put it higher than that—a similar tendency for prices to fall. I have been careful not to mention countries such as France, Italy and Germany, which for our purpose are not comparable. If what I am saying is broadly correct—as it is—it has the most serious consequences for the future of our export trade.

I apologise for dealing with this matter at further length than I intended, but I think that the position should be explained to the House. I must mention Mr. Kenney's warning, given in the course of a most generous tribute to this country and to its industries and everyone engaged in them. He could not have paid a more glowing and deserved tribute to this country. Let me read what Mr. Kenney said: An inflationary increase in costs would very quickly recreate the situation which required devaluation. Therefore, adequate steps were and are required to prevent a recurrence of those conditions. The necessary corrective measures complementary to devaluation must be accomplished, or else the British economy may proceed periodically from crisis to expedient and back to crisis. The House may perhaps observe the close family likeness between those words of Mr. Kenney and the words in which the Chancellor of the Exchequer, at an earlier date, described the life we had been leading previous to devaluation. In the light of the facts which I have stated. it is essential that we should know at the earliest moment what action the Government propose.

No doubt some hon. Members will say, "What would you do about it?" I will tell the House briefly one or two of the things we would wish to do about it. We have many times urged the Government to keep a tighter rein on the release of sterling balances. These balances present, in a Parliamentary sense, a most anomalous position. Is it not true that if the Government wish to raise an extra penny a week for the Navy or for any formal business of Government, they have to come to the House for Parliamentary sanction, but the payment of these hundreds of millions of pounds is sanctioned by the Bank of England and the Treasury and, although the Chancellor of the Exchequer is responsible, Parliament appears to have no control over the situation? I ask the Prime Minister, or whoever is to reply, if the American Loan Agreement did not foreshadow a release of the sterling balances at a rate not exceeding about £43,750,000 a year? In fact, I think that is the figure mentioned as one of the conditions in what is called the "waiver of interest clause" in the Agreement—Clause 5. Yet over the last two years these balances have been released at a steadily rising rate. In 1947, £156 million were released; in 1948, £265 million were released; and in the first nine months of this year they were released at a rate of £276 million—so those figures go on mounting. Now, even these giant figures do not include the interest which is being paid by the Government on the remaining balances.

Let us look at that picture from another angle. It means that each worker—I think I am right in this calculation—engaged on production for export today is working one day in six on the production of goods for which no corresponding imports at all are received. Can we really continue indefinitely to carry that burden? It cannot be denied that these releases are weakening the position of the £ abroad. Mr. Kenney makes that point, and I think it is unquestionably true. How otherwise can the Prime Minister, or any other Minister, explain this fact. Nearly everywhere outside the dollar area we have a favourable balance of trade. That is agreed. Well, then, how does it come about that, in spite of that, sterling has not become a scarce currency at all but a currency which countries show no eagerness to hold? I suggest it is because of the vast dispersal of those sterling balances, and the difficulty is that the payment of those balances is placing the severest strain on our economy. I do not think any Member of the Government would deny that.

Mr. Wyatt (Birmingham, Aston)

Can the right hon. Gentleman explain to the House how he reconciles this point about the release of sterling balances with his anxiety to help South-East Asia, which necessitates such a release?

Mr. Eden

That is a perfectly reasonable point. It is perfectly true that a portion of these balances have helped the economy of South-East Asia, and to that extent it is an advantage. But one has to look at these things sometimes from the point of view of our own country. [HON. MEMBERS: "Ah."] I am not making a cheap point here. The point is whether we can indefinitely continue to carry this burden on this scale unaided, which brings me to the very point I was about to make, which answers the hon. Gentleman. Last September these matters were discussed at Washington at the time of devaluation; a committee was set up, and some arrangement was supposed to be arrived at as to what was to be done about the sterling balances. We have never heard another word. Has that committee finished its work? Has it agreed what has to be done? Is a report now, or soon, to be expected? Can we be told anything about it?—because I saw in some paper that the matter was to be discussed again by Mr. Acheson with the Foreign Secretary in April.

I should have thought that this topic was long since far removed from the realm of discussion and should move into that of action. I would say, in reply to the hon. Member, that this is exactly the kind of topic which, as a result of the Colombo Conference, ought to be agreed with the other three Powers of the West, including the United States, so that we may proceed to a common policy towards South-East Asia and towards these balances, the release of which is bleeding us much too much at the present time. I hope at least that argument is reasonably clear.

This brings me, briefly, to the programme of domestic legislation which is set out in the Gracious Speech. This seems to us a rather vague and skinny affair. A number of important topics are not included at all. I am not going into them this afternoon.

Mr. Shurmer (Birmingham, Sparkbrook)

They were gone into during the election.

Mr. Eden

We all played what part we could in the election. I agree that it was a serious and well-conducted election. As a matter of fact, the only noisy meeting I had was in the hon. Gentleman's constituency, and that was caused not by his supporters but by Communists. I am afraid I was rather led aside from what I was saying.

Tomorrow my right hon. Friend will examine a number of features, one of the principal of which does not figure in this Speech, namely, that of housing, in regard to the future programme of which there is certainly very widespread anxiety. The Government tell us their excuse is the restricted time available. Well, I do not myself suppose that Ministers really believe that, and still less expect us to believe it. It has nothing to do with restricted time: it has to do with the restriction on the number of votes that can be put into the Lobby. If their majority were 100, I have a suspicion that there would be perhaps some nationalisation Measures figuring in this particular bill of fare. I am not complaining about this at all; I have no complaint about this omission. On the contrary; we welcome this evidence of electoral lessons truly learned.

After all, whatever else we may dispute in the course of the next few months—or maybe years, one never knows—one thing there cannot be any argument about is that nobody can deny that there has been a pretty emphatic vote in this election against nationalisation. [HON. MEMBERS: "No."] I can give my interpretation of the result, and I say that the country wants no more nationalisation, no more socialisation, and no more mutualisation either—a singularly ugly word which ill-conceals its ugly purpose. If hon. Members opposite think there is not a majority against nationalisation, it is not for me to produce the conclusive evidence; nor would I make any approach below the Gangway to an authority which I read in a Sunday newspaper must be known in future as the Grande Dame.

Our contention is plain enough: the country has pronounced against nationalisation; and in our judgment that goes for iron and steel also. Members of the last House of Commons will kindly recall—I am sure they will—that the motive for the compromise decision reached with another place in the closing stages of the last Parliament was to enable the electorate to pronounce clearly upon this Bill before it became operative. [HON. MEMBERS: "No"] Oh, yes. Some said so. I must remind hon. Members that some of them very loudly applauded that compromise. The hon. Member for Wednesbury (Mr. S. N. Evans), for instance, who now adorns the Government Front Bench—and I am very glad that he does adorn it, because he is a Member for whom we all have very great respect—said this about the compromise: The compromise between the two Houses will be, if accepted, in the best traditions of English Parliamentary democracy. Well, that is all right. I welcome the step that the Government have taken. It was always clear to me that until we had a General Election on this issue we should not get the type of person to stand for these boards that we would like to get. A man would not be likely to jeopardise his future economic prospects by offering to drive a car which might never start. The electors are the final arbiters in this matter."—[OFFICIAL REPORT, 16th November, 1949; Vol. 469, c. 2054.] That seems to me very good sense. I thought it was then, and I still think it is now. The Minister of Supply spoke in a very similar sense. Where do we stand today? Hon. Members opposite may contend that the nationalisation of iron and steel did not figure in the General Election. We certainly did everything we could to ensure that it did. It was in the speech I made at the opening of the election; it was in the manifesto; it was in almost every single one of our wireless speeches—[Interruption.] Hon. Members need not be so indignant. I am merely saying that in our view the nation has pronounced against any further nationalisation, including the nationalisation of iron and steel. Now, I trust—and I cannot do more than trust—that the Government have accepted that verdict in the same way as they have accepted the verdict to shelve all other nationalisation Measures. If they have not, they would be very wrong; but whether that is their policy or not, it is my plain duty this afternoon to ask the Government to tell us what their intentions are, and then we shall be able to continue this controversy if need be.

It seems to me that the great divide in this Parliament today, and indeed in the nation, is on this issue of nationalisation. It dominates our electoral life, and it will determine our economic future. Of course, there are many Members opposite who sincerely believe that we must move along step by step, some faster, some slower—the Lord President of the Council one way, and the Minister of Health the other—until we have nationalised all means of production, distribution and exchange. In other words, until the whole economic and industrial life of the country is owned and controlled by the State—I believe that is the Prime Minister's phrase.

For our part, we believe that such an evolution would be disastrous for the future of our country. We believe that we can only live by the variety of the goods we sell and the services we render to other lands at competitive prices. Socialism, we think, can only hamper such diversity of endeavour. If this Parliament serves seriously to range and to balance the arguments for and against the future of Britain as a Socialist State, then, however short its life, it will not have lived in vain.

5.32 p.m.

The Prime Minister (Mr. Attlee)

I should like to join with the right hon. Gentleman the Member for Warwick and Leamington (Mr. Eden) in congratulating the mover and seconder of the Address in reply to the Gracious Speech. Both dealt with matters on which they are authorities. They spoke of things they knew, which always commends speeches to the House. It was interesting that we had from them emphasis, on the one side, on the great need for agricultural production and, on the other, the great importance of our industrial production. I regard those as two of the pillars on which the prosperity of this country stands. I think the House was very interested in those speeches.

Before I deal with the Gracious Speech and with the remarks of the right hon. Member for Warwick and Leamington, I desire to say a few words about the course of the Debate and the business of the House. We propose that the Debate on the Address should occupy the whole of the rest of this week and should be concluded on Monday next. The allocation of time between the various topics in the general Debate and on any particular Amendments is, of course, a matter for you, Mr. Speaker, and no doubt there will be the customary consultations through the usual channels. The time of the opening of this Session necessarily imposes somewhat strict limitations on the business that can be brought forward. I was rather surprised that the right hon. Gentleman did not seem to realise that, in any case, when a Session is started in March, as compared with October or November, it necessarily means a curtailed programme.

Mr. Churchill (Woodford)

Is that the only reason?

The Prime Minister

Certainly not. The right hon. Gentleman seems to give insufficient weight to that reason, but had he by some accident been sitting on these benches, he would have given it full weight. In particular, the time before Easter will necessarily have to be devoted very largely to the financial business which must be got through before the closing of the financial year. There are Supplementary Estimates for the present financial year. There is the Vote on Account on Civil Estimates, and Estimates for the Revenue Departments and the Ministry of Defence for the year 1950–51. We must obtain Vote A for men, and a number of Votes for the Navy, Army and Air Services to carry on these services until all the supply grants have been passed. There is also the Consolidated Fund Bill to pass through all its stages. The House will also wish to debate the White Paper on Defence which is being laid today.

Ten days will be required up to and including 29th March for the business of Supply and for the Consolidated Fund Bill. I think it will be agreed that this leaves a very narrow margin of time for other business. Further, Easter falls early this year—9th April—and adjournment for the Recess would ordinarily take place on Thursday, 6th April. I think the House will agree that, in those circumstances, it is necessary and reasonable to take all time up to Easter for Government Business. A Motion will be placed on the Order Paper, for consideration at the beginning of business tomorrow, to give precedence to Government business and to provide for presentation of Government Bills only, until Easter.

I think that the programme outlined makes that necessary, but there is then the consideration of how best to use the time after Easter. We may well be asked to 'provide time after Easter for Debates on the boards of socialised industries and other subjects. I think that perhaps it would be better in existing circumstances if, before coming to any decison in regard to proposals as to Private Members' time, there were some talks through the usual channels to see how best that can be arranged in the interests of all, rather than to put down a Motion on Private Members' time without consideration of what shall be done. I think that consideration through the usual channels would be best. For the benefit of new Members, I might refer to the Ballot for Motions on going into Committee of Supply on the Estimates which will be held the day after the conclusion of the Debate on the Address.

I should like at this point to echo what was said by the right hon. Gentleman in regard to the very welcome visit of the President of the French Republic and Madame Auriol. Many of us have known him for a good many- years, and he will get a very very warm welcome here, as well as Madame Auriol, because of their personal qualities and also for the warm affection we feel for the French people. As the House knows, there is to be a Parliamentary reception by both Houses for the French President at 11.30 a.m. in the Royal Gallery on Thursday next. I am quite sure that Members of all sides will be anxious to do M. Auriol honour by being present on this occasion.

I now turn to the Gracious Speech. I have pointed out that the time available this Session, owing to the time of the meeting of the House, restricts the amount of business to be done. The Leader of the Opposition anticipated me in what I was going to say. I was also going to say that there is the Parliamentary situation. At any time, the King's Speech necessarily reflects that situation, and its contents in the legislative field are conditioned by it. The Government, although they have secured a greater number of electoral votes than have ever been obtained before by any party, have obtained only a very small majority. It is not my intention to deal with those interesting mathematical calculations with which the newspapers are filled, but merely with the facts.

Our electoral system has never been designed to give an exact mathematical representation to the various trends of opinion. On the contrary, it has usually given an exaggerated majority to one party or the other, and it is quite obvious that a certain alteration of votes might have done that on this occasion. Although offensive to the theoretician, this has, I think, worked in practice in favour of stability of administration, which, after all, is the essential thing in the Government of the country.

On this occasion it has resulted in a position which makes the carrying on of government not free from difficulties, but I entirely agree with the right hon. Gentleman in what he said about frustration. Just as he says there is no frustration on his side of the House, so there is no frustration on this. The duty of the Government is clear. The government must be carried on, and, however difficult it may be, it is in the interest of all of us that government should be carried on effectively. There is here, I think, a test of common sense, and, after all, common sense and a realisation of the practical are two of the supreme qualities of the British people. I am quite confident they will not be wanting on this occasion.

This House has had to face very many situations. I understand it is 100 years since the parties were so evenly divided, but, looking up precedents, I find that things were a good deal more fluid in those days. So many gentlemen at that time seemed to have that curious contradictory variety of nomenclature that adorns the third bench below the Gangway. We shall, therefore, continue to administer the affairs of the country in the same spirit and on the same principles as we have done during the last four and a half years. We shall, of course, welcome the contributions that right hon. Gentlemen opposite will make to our Debates, in particular on the matters to which the right hon. Gentleman referred. We shall be glad of specific points on which they intend to bring in economies rather than general statements alleging extravagance without any facts to back them up.

The legislative programme which we submit to the House is, of course, limited, and not violently controversial. I do not think there are any special items that could claim our attention at this moment. The Measures are useful, but there is one subject, I know, which is of great interest, particularly to householders and business men, and that is the reform of the law relating to lease-holders. I do not know whether it is controversial or not. When we get the Report we shall see, but I hope that Report will be with us before very long. We then can consider legislation. It has been stated quite clearly in the Gracious Speech that where it is necessary for the maintenance of full employment and the national well-being to introduce Measures, even though they are contentious, the Government will not hesitate to do so.

The right hon. Gentleman asked me a question with regard to the position of the Iron and Steel Act. That Act is on the Statute Book. The Corporation cannot be appointed until 1st October, 1950. The earliest date for vesting is 1st January, 1951. There is nothing to be done in the matter immediately, but that statute is on the Statute Book and our purpose is to give effect to Acts passed by Parliament. I shall not pretend to argue the precise nature of the causes which have returned right hon. and hon. Gentlemen opposite, any more than I should like to evaluate the exact opinions which returned hon. Members below the Gangway. We can all form our opinions as to what the decision was, how it was arrived at, and the weight to be given to it. That is a matter which we can debate subsequently.

I have observed statements made in other countries to the effect that our present Parliamentary position entails a period of weakness and indecision in Government. I believe they are entirely mistaken. I entirely agree with the right hon. Gentleman. The fact that Parliament is almost equally divided does not mean in the least that the hand of this country in foreign affairs should be weakened in the slightest degree. The Parliamentary situation must not divert the attention of this House and the attention of the people from the hard work and the continued effort needed from all sections of the community to further our full economic recovery. We must not allow electoral considerations to damage the interests of this country. No doubt, this topic will be fully debated this week.

I should like to make one or two observations. We have only two years left of the breathing space accorded to us by Marshall Aid before we have to stand completely on our own feet. That is always before us. In the last six months we have made good progress in our production, in our exports and in improving the balance of payments. Our general line of balance of payments policy will continue. It is quite clear that we must at home continue with the careful planning of our resources. The right hon. Gentleman the Member for Warwick and Leamington spoke quite truly of the dangers of inflation. That danger has always been with us, and is one of the reasons why we want increased production. It is also the reason why there must be careful husbanding of our resources, and why we must continue to have a very carefully planned economy.

The right hon. Gentleman mentioned a word or two about prices. He talked of falling prices. He must remember especially, in relation to the United States of America, that that is not an entirely free economy. In fact, prices of things we need, particularly farm prices, are pegged. That is one of the points to observe when he compares price levels in different parts of the world. The right hon. Gentleman also raised the point of sterling balances. That will, no doubt, form a subject of discussion at greater length, and my right hon. and learned Friend the Chancellor of the Exchequer will refer to it, but one should get a clear idea of what these sterling balances were. They were money voted by us to pay for services for the most part given in the war. Any idea that they can be repudiated straight away is quite wrong.

Mr. Eden

I do not wish the Prime Minister to take me up wrongly, but I never said anything remotely like "repudiating."

The Prime Minister

I quite agree, but there is a great deal of loose talk, and though I am not suggesting the right hon. Gentleman said it, there is a tendency to talk as if they were a monstrous thing which had arisen. They arose out of the war, and had to be dealt with.

Mr. Churchill

Are not the bulk of the sterling balances or British debts due to countries like India and Egypt which we defended from invasion by Japan and by Germany, and are we not entitled to have our counter-claims for the immense expense to which we were put?

The Prime Minister

Well, that is a matter that can be argued, of course, but I do not think that that would be the best way to approach the problem of the sterling balances. It is beyond question that the release of sterling balances has meant an immense increase of stability in those areas of South-East Asia. Any suggestion that one could have looked entirely apart from that consideration, and that we could have thought only of our own interests, would have been quite fatal. At the same time, it is obvious that there has had to be throughout a very careful balancing between our own position and the position of other countries. As a matter of fact, the amount of releases has been reduced, is being reduced and will be reduced. [An HON. MEMBER: "How much?"] The whole subject was discussed at great length in the tripartite discussions in Washington and will have to be discussed still further. Obviously, if anything has to be done it has to be discussed not only with the United States but with the countries concerned, and that will be done.

The right hon. Gentleman spoke of certain aspects of foreign affairs. He seemed to think that on foreign affairs there was no clear theme running through the Gracious Speech. I should have thought it was quite obvious. We point out that we continue our support of the United Nations. We point out the work we are doing with the Commonwealth, and we can point out that in South-East Asia we have had the recognition of the States in French Indo-China. That is in line with the policy that we have pursued in regard to the nations of Asia, both in India, Pakistan and Ceylon. It is perfectly plain—there was no difference of opinion on the matter, I should have thought—that the supreme need is to build up the security of the world and the prosperity of the world. I think that that theme runs clearly through the Gracious Speech.

The right hon. Gentleman asked me about the present position with regard to the Colombo Conference. The Conference has not yet been fully considered. At the present moment work is proceeding on the official level with the Spender plan. The Australians have suggested that there should be a meeting in Canberra in May to discuss that plan. The Spender plan envisages consultation with the Commonwealth countries first, and doubtless after that we shall be consulting with the United States of America. Meanwhile, there is the closest exchange of information and co-operation on all these matters with South-East Asia.

We have given our fullest support to the O.E.C.C. There is, there, a major problem of European payments. The House knows of the appointment of Dr. Stikker, which we welcomed. We hope that these events will lead us on to settling this extremely difficult question. There has also been steady progress both in Western Union and the Atlantic Pact. The flow of essential military equipment will soon begin to arrive on the Continent. That will have a good physical effect, and a good psychological effect, on the European defence forces. Under the Brussels Treaty we are trying to extend social and cultural co-operation in the widest possible way. The right hon. Gentleman very rightly said that the central problem is the position of Germany. The economic situation of Germany has been giving us grave concern. The number of unemployed, rising up to two million, the stagnation in industrial production, the heavy increase of semi-luxury imports, and the decline of foreign exchange holdings, all indicate that too great a release from planning has not been a success in that country and has indeed endangered its economy.

I should like to say a word on a matter which has figured a great deal in the public Press and which gives us all great concern. It is the question of the hydrogen bomb. The public are naturally concerned over the danger to civilisation from this weapon of mass destruction. The hydrogen bomb is something which is in the future, of course. It differs in degree, more than in anything else, from the atom bomb. In the early days after the war, when I saw President Truman and Mr. Mackenzie King, I made the point that what is required is the will to peace and co-operation. Once we get that, the rest can be secured; but without mutual understanding I do not believe we can go very far in applying special rules to particular weapons. We have sought very earnestly to arrive at agreement with the Soviet Union. It is very difficult. So long as they maintain an attitude which regards all the rest of the world as hostile, and as long as they indulge in world-wide subversive activities, we shall make little advance.

We have tried to make the United Nations effective, but on matters of this kind there is really no good in signing illusory undertakings which merely lull people into a false tranquillity. We must have the good will and we must have the effective machinery. The Soviet proposals fall short of what is required. The kind of inspection they would provide is quite inadequate. There would be no real international control. It is that which is essential. I do not think that it is the method which counts, but the will. The overwhelming majority of the United Nations have endorsed the plan of control, but the Soviet Union stand out. If the Soviet Union come in we can make the enormous advance which I believe the vast majority of the human race are longing for in this matter. Meanwhile, we have continued to develop our plant here at home. It is not true to say that we are lagging far behind. We started far behind, because, as the right hon. Gentleman knows very well, our agreement was made for this development to take place in the United States and Canada. It is natural, therefore, that we should be behind, but developments have taken place.

In addition to what we are doing in the international field and in the general building up of defence forces, there is the matter of Civil Defence which is mentioned in the Gracious Speech. There has been continuous study by the Home Office and other departments. Regulations were made in 1949 and guidance was given to local authorities. Recruitment for Civil Defence services began in November, and 30,000 have been enrolled. I hope that we shall get a great enrolment in this body, which is, after all, a necessary precaution.

I want to say one word about a matter which has caused a good deal of writing in the Press, and that is the Fuchs case. It is a most deplorable and unfortunate incident. Here we had a refugee from Nazi tyranny, hospitably entertained, who was secretly working against the safety of this country. I say "secretly" because there is a great deal of loose talk in the Press suggesting inefficiency on the part of the security services. I entirely deny that. Not long after this man came into this country—that was in 1933—it was said that he was a Communist. The source of that information was the Gestapo. At that time the Gestapo accused everybody of being a Communist. When the matter was looked into there was no support for it whatever. And from that time onwards there was no support. A proper watch was kept at intervals. He was a brilliant scientist. He was taken on in 1941 for special work by the Ministry of Aircraft Production. He was transferred to the Department of Scientific and Industrial Research. He went to America. He came back to Harwell. On all those occasions all the proper inquiries were made and there was nothing to be brought against him. His intimate friends never had any suspicion. The universities for which he worked had the highest opinion of his work and of his character.

In the autumn of last year information came from the United States suggesting there had been some leakage while the British Mission, of which Fuchs was a member, was in the United States. This information did not point to any individual. The Security Services got to work with great energy and were, as the House knows, successful. I take full responsibility for the efficiency of the Security Services and I am satisfied that, unless we had here the kind of secret police they have in totalitarian countries, and employed their methods, which are repro- bated rightly by everyone in this country, there was no means by which we could have found out about this man.

I do not think there is anything that can cast the slightest slur on the Security Services; indeed, I think they acted promptly and effectively as soon as there was any line which they could follow. I say that because it is very easy when a thing like this occurs—it was an appalling thing to have happened—to make assertions. I do not think that any blame for what occurred attaches either to the Government of the right hon. Gentleman opposite or to this Government or to any of the officials. I think we had here quite an extraordinary and exceptional case. I mention that because of the attacks that have been made.

There will be a full Debate in this House on all these topics and I am sure that we shall get the support of everybody in the efforts which the Government will make and the country will make to get through these economic difficulties. I am quite sure that this House of Commons that has faced so many difficult situations will face the position of the even balance of parties with its usual success.

Mr. Speaker

Before we continue the Debate, as the Prime Minister and the right hon. Gentleman the Member for Warwick and Leamington (Mr. Eden) have mentioned the visit of the French President, I thought hon. Members would like to know that the President of the French Republic is arriving at Victoria Station tomorrow afternoon.

The procession is passing through Parliament Square on its way to Buckingham Palace. This necessitates the closing of roads in this vicinity during the early part of the afternoon, but the police are making every effort to ensure that hon. Members have access to the Houses of Parliament, and I trust that no serious inconvenience will be caused.

I have arranged for the details of the routes being closed to be circulated to all hon. Members, and for the map showing these routes to be displayed in the Library. I think it will only affect motor cars, as a matter of fact.

6.4 p.m.

Professor Savory (Antrim, South)

There are a few points arising out of the recent election which it would be appro- priate to discuss this evening. Everywhere I went in my enormous constituency of South Antrim the one question put to me was this: what will be the result of this election? My reply was always the same: "This election is a pure gamble. No one can possibly prophesy what the result will be." And the cause of this election being a pure gamble is the three-cornered fight. I have discussed this matter with many hon. Members on both sides of the House, and they have said to me exactly the same thing, "We could not possibly say whether the intervention of a third candidate was helpful or disadvantageous to us."

When one thinks that in the last House 177 Members were elected on a minority vote, one can realise how undemocratic is the constitution of this House. I have not had time to make the calculation for this Parliament, but in the last one 177 Members came to this House saying that they represented a constituency where the overwhelming majority of the electors had voted against them. If we had such a system as they have in France, where in a constituency in which no Member has obtained the absolute majority there must be a second ballot a fortnight later, we could be sure that after the second ballot the Member really represented his constituency.

The present system is absolutely hopeless. It came into existence at a time when, because there were only two parties, a man was either a Tory or a Whig. The intervention of a third party, and the failure to have any scientific or mathematical system of representation, makes the position almost hopeless when the question of what Government is to be in office depends upon it—contrary to the system prevailing in the United States. There, no matter what the majority of the House of Representatives may be, whether Democratic or Republican, the Executive does not change in accordance with that majority, for it is independent. Here, when the Executive is so entirely dependent upon the majority of the House of Commons, however small that may be, it is essential that we should try to bring about a more scientific and less inaccurate system of representation.

May I take this first opportunity of expressing my deep regret at the loss of Members who were an honour to this House? Of the 12 University Members whose seats have been abolished only four have returned to this House. [An HON. MEMBER: "Hear, hear."] An hon. Gentleman says "Hear, hear" but can one help deploring the loss of such men—[An HON. MEMBER: "No."] Listen—men as Sir John Anderson, a supreme authority on finance, a man who guided our finances throughout the war with immense skill. How can one possibly fail to deplore the absence of such a man from these benches? Or again, take that eminent economist, Sir Arthur Salter. Whenever he got up in the House hon. Members listened to him with great attention, because everybody knew that he was the greatest authority we had here on economic questions—

The Parliamentary Secretary to the Ministry of Fuel and Power (Mr. Robens)

Bunkum.

Professor Savory

The hon. Member says "bunkum," but this was the man who was our representative in America during the whole of the war, who arranged for all our merchant shipping, a man of supreme ability, a man whom the House respected. Those are types of men that we need in this House today.

Mr. Emrys Hughes (South Ayrshire)

Will the hon. Gentleman allow me to interrupt? If those hon. Gentlemen were so important to the national welfare why were they not given safe Conservative seats?

Professor Savory

Because they were both of them Independents. They were neither Conservatives nor were they Labour representatives. The universities gave the opportunity to these Independents to fight for their seats. They are men of extraordinary intellectual vitality, men of pre-eminence in their own particular spheres.

I appreciate and am deeply grateful to the electors of South Antrim for having me returned by the overwhelming majority of nearly 33,000, and I must pay a tribute to their intelligence. In my campaign I had the pleasure of addressing no less than 48 meetings in this immense constituency, covering hundreds of miles, and everywhere I found, even although a professor was addressing them, an intelligent appreciation of the arguments he was using; and further, I must pay tribute to the order which prevailed.

If hon. Gentlemen had been listening in to the Moscow radio describing the election, they would have gained an extraordinary impression. Do hon. Members realise that Moscow radio described the violent methods by which Communists were prevented from voting for their candidates? Moscow radio, in fact, attributed to this country the exact methods which were used in Poland, Bulgaria and Roumania to suppress the freedom of elections. I only hope that hon. Members who do not understand the Russian language will at least apply to the B.B.C. and get the monitors' report of what was being broadcast every hour or so from Moscow on this most orderly election.

I should like to draw attention to what, I think, is a very unfortunate rule that was introduced into the Representation of the People Act, 1948, with regard to the election. I am not speaking now from a party standpoint; I assure hon. Members that both sides suffered from this drawback. Take my own constituency, with 77,000 electors. Do hon. Members realise that under the Act, being allowed the use of only one motor car for every 1,500 electors, I was reduced to 51 motor cars?

Mr. Robens

Too bad.

Professor Savory

I am deploring it for my opponent as well as for myself. I had over 70 polling stations. That meant, with only 51 motor cars, that some polling stations had no cars which could be assigned to them. I appeal to the Labour Party, who have always taken up the cause of democracy, that it is not democratic to prevent electors from being taken to the poll. In many cases I found elderly people, unable to get transport, unable to record their vote. Why should you, you democrats, prevent a man who is on the register, who is unable to walk the immense distance—

Mr. Speaker

The hon. Member should remember that he is addressing me, and not the other side of the House.

Professor Savory

I apologise, Mr. Speaker. I feel sure that even you, in your own constituency, must have realised this very serious drawback, and I hope that it is not too late to appeal to the other side, in the interests of democracy, either to abolish this regulation, which is absolutely contrary to democracy, or at least to extend the number of motor cars.

I want to be perfectly fair. I appreciate the regulation by which aged and infirm people could vote by post, but in such an immense constituency as mine it was very difficult to get the papers distributed, to bring home to the elderly people that they had this facility: it was so new. It was very difficult to get the papers put into their hands, and it must be remembered that it was an immense complication for a person to go to a doctor and obtain a medical certificate that he or she was unable to go to the poll. Therefore, many people, either through inadvertence—I admit inadvertence—or through the difficulty of getting these papers out in time, were unable to vote; and therefore, it was all the more necessary that transport should be provided. I must mention that noble elector in County Tyrone, 90 years of age, who walked 12 miles to the poll and 12 miles home. There was a man who was determined at all costs to record his vote. There were, however, others who would have voted had it been possible for them to do so.

In Northern Ireland we scrupulously observe all regulations. [Laughter.] Certainly. We had that limit of 51 motor cars and we did not exceed it. Even if a motor car broke down we were not allowed to replace it, and we did not do so. I insist—I am sure that if hon. Members opposite reflect for a moment they will agree with me; I am not speaking from a party point of view—[HON. MEMBERS: "Oh"]—that this restriction of transport is a very serious matter. Surely, with a majority of nearly 33,000, I can speak freely. I am speaking only in the interests of the electors themselves—my majority did not depend upon questions of transport—and in the interests of my opponent who, I know, would like to have brought more people to the poll. I protest against this arrangement and I make an earnest appeal to the Government either to abolish or, at any rate, to modify this regulation before the next election.

6.17 p.m.

Dr. H. M. King (Southampton, Test)

I trust that the House will forgive me if, on the occasion of my maiden speech, I do not follow the hon. Member for South Antrim (Professor Savory) and reply to his passionate defence of "one man, two votes." I have often wondered why Members addressing the House for the first time should crave the indulgence of the House, but in my early days in Parliament I have realised just how vital that necessity is. I feel conscious not only of the fact that the fabric of this Parliament is history, but that many of the men and women who share my presence in the House are themselves the embodiment of living history. If I speak with lack of confidence and with some fear, it is because I have now the honour to belong to the House where still sits the right hon. Gentleman the Member for Woodford (Mr. Churchill), under whose leadership Parliament and many people here guided this country in its struggle to preserve democracy, and also because I have the honour of being in the same House, and on the same side, as my right hon. Friend the Prime Minister, under whose guidance Parliament is using this democracy to bring, at long last, social justice to our people. For those reasons, I crave the indulgence of the House this afternoon.

I do not intend to deal with the weightier issues of this Debate, but to leave them to mightier men and confine my remarks to a narrow field and speak of what I know. Perhaps, as I develop in Parliamentary experience, I may follow the temptation of older Members to widen the range of my observations, but this evening I wish to speak on but one aspect of this Parliament. I believe it will be largely administrative rather than legislative, and I wish to call the attention of the House to two serious aspects in which we might improve and benefit the country.

The first is the question of help to our blitzed towns. Although I speak of Southampton I am certain that what I say is also true of other blitzed towns. The town I have the honour to represent is perhaps the greatest passenger port of this country. It has great natural resources and its people are anxious that those should he developed to the full. It is the gateway to England and we are anxious that the people of this country shall help us to make that gateway worthy of the land which lies behind it.

Southampton has a history which becomes more glorious the nearer one approaches the present day. In the First World War it was the key port to the Western Front. In the Second World War more than a million Americans found their way through our town to battlefields in every corner of the old continents. Just before D-day its streets and its highways, its docks and waterways, were thronged with men and materials on their way to the invasion of Normandy. Greatest honour of all, and greatest sadness of all, Southampton was singled out by the Germans for exceedingly heavy air attacks. In that blitz Southampton lost many thousand homes, a quarter of its schools were damaged, and many of its churches, factories and shops suffered either complete or partial destruction. I sometimes feel that the rest of England is inclined to be not only a little forgetful of the heroism shown by the people of the blitzed towns during the days of the air raids, but a little unforgetful of the moral courage and grit of our people who try to build up those blitzed towns again under conditions of great difficulty in these post-war years.

Whatever post-war problem this House discusses from time to time, usually that problem weighs most heavily on the blitzed towns. I am here today to plead for what I may call, as an analogy, Marshall Aid, in the lifetime of this Parliament, for the blitzed towns. To use Southampton as an illustration, during the war we lost £200,000 rateable value, but, with our depleted resources, we still have to maintain the same social services, the same administration; indeed, our civic expenses, because of the blitz, are higher, although our resources are less. During the war we had a kind of lend-lease from the British Government, who stabilised our rates. But after the war Southampton, like, probably, every other blitzed town, received a grant. It received in 1946–7, a grant of £200,000 towards its rates, and in 1947–8 a grant of £100,000, after which financial aid dwindled away until Southampton now bears the burden of its blitz alone. So grave are the economic problems which weigh on the blitzed towns that I feel that many of them, in trying to balance their local budgets, are gravely economising in vital matters and will find it impossible even to get back to the state in which they were before the first night of the major blitz.

I also ask the Government and this Parliament to give special help to the blitzed town in its housing problem. We were fortunate in receiving a generous allocation of prefabricated houses, but now I ask for a more generous allocation of building materials and building labour. We also ask that if we receive imported building labour the extra charges involved in subsistence for that extra labour should be borne by the country as a whole and not placed on the shoulders of the blitzed towns. In this Parliament, which will be largely administrative, I ask that the people of England should remember what they owe to the men and women of the blitzed towns. It is our proud boast that after this war we have not forgotten the ex-Service man; I hope that no Government will forget what it owes to the men who gave life or limb, health or sight, to preserve our freedom. In this same spirit. I ask the rest of the country to remember what it owes to the people of the blitzed towns and to help them with the heavy burdens they shoulder. I ask for a square deal from unblitzed Britain for blitzed Southampton.

The other point I wish to make concerns our children. I also ask that in this Parliament we should make greater speed towards the implementation of the Education Act, 1944. I press the vital claims of the children in our infant and primary schools. I realise that in a couple of Parliaments we cannot make good the neglect and false economy which took place in the inter-war years in the replacement of primary schools, but reference has been made in the Gracious Speech to the importance of agriculture. If we are to have a healthy agriculture—a permanently healthy agriculture—we must provide for the children of farmworkers something a little nearer equality of opportunity in education than they have at present. I believe that a thousand pre-fabricated schools replacing the worst thousand village schools in Great Britain would be a real godsend and boon to the countryside, that they would show the farmworkers of England that we meant business and regarded them as key people in this vital economic struggle and want their children to have the same chances as the children of the towns.

I suggest that in this Parliament we might consider the very heavy burdens which educational advance is placing on local authorities and that some easement might be given to local authorities and borne by the State. Many of us speak of equality of opportunity for our children, but by no means have we yet secured equality of opportunity as between child and child. We are slowly, pitifully slowly in my view, advancing to that equality of opportunity. I see no reason why a Parliament which may be divided on major issues should not unite in speeding forward the work of bringing that equality to our children. As I have said on many occasions, I realise that this House is by no means entirely composed of Socialists but I would suggest that long years ago we in this country might well have been Socialists about our children, and that whatever differences may exist between man and man we should give to all children in this land the same opportunity to build up a healthy mind in a healthy body.

I would urge this Parliament to push on rapidly with first-aid work in the improvement of our worst primary schools, starting perhaps with schools on the black list, turning to the blitzed towns and then to the industrial areas, where there are still schools which are plain, substantial buildings with enough ornamentation to distinguish them from prisons—that we give to our English children a feeling that in this Parliament their interests are paramount. I believe that if we do that we may still regard this Parliament, despite its unusual composition, as a worth-while Parliament for the children of our country. It has been said that what a good parent desires for his child so a good nation desires for all its children. It is with that thought in mind that I shall from time to time endeavour to address this House on the subject of our children and on the advance towards the ending of unequal privilege as between child and child.

6.32 p.m.

Mr. Martin Lindsay (Solihull)

It is my very pleasant task to offer the hon. Member for the Test Division of Southampton (Dr. King) the congratulations of this House on the admirable way in which he has delivered his maiden speech. The House will h