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T H I S D O C U M E N T IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T Y ' S
Printed
for the Cabinet.
July
GOVERNMENT
1956
SECRET
C M .
Copy N o .
(56)
55th Conclusions
C A B I N E T
CONCLUSIONS
of a Meeting of the Cabinet held at 10 Downing
on Tuesday, 31st July, 1956, at 11 a.m.
Street,
S.W. 1,
Present:
T h e R i g h t H o n . Sir
The
Most
SALISBURY,
ANTHONY
EDEN,
H o n . the MARQUESS O F
L o r d P r e s i d e n t of t h e
M.P., Prime
The Right H o n . R.
L o r d P r i v y Seal.
Minister.
A.
BUTLER,
M.P.,
Council.
T h e R i g h t H o n . HAROLD MACMILLAN,
M . P . , C h a n c e l l o r of t h e E x c h e q u e r .
The Right Hon. the VISCOUNT
Lord Chancellor.
The
H o n . GWILYM
LLOYDM . P . , S e c r e t a r y of S t a t e f o r
the H o m e D e p a r t m e n t a n d Minister
for W e l s h Affairs.
T h e R i g h t H o n . JAMES STUART, M . P . ,
S e c r e t a r y of S t a t e f o r S c o t l a n d .
T h e Right H o n . t h e EARL O F H O M E ,
S e c r e t a r y of S t a t e for C o m m o n w e a l t h
Relations.
The Right H o n . ALAN LENNOX-BOYD,
M . P . , S e c r e t a r y of S t a t e for t h e
Colonies.
The Right H o n . DUNCAN SANDYS, M.P.,
Minister
of H o u s i n g
and Local
Government. T h e R i g h t H o n . PETER THORNEYCROFT,
M . P . , P r e s i d e n t of t h e B o a r d of T r a d e . T h e R i g h t H o n . D . HEATHCOAT A M O R Y ,
M.P.,
Minister
of
Agriculture,
Fisheries a n d F o o d .
T h e R i g h t H o n . Sir D A V I D
M . P . , M i n i s t e r of E d u c a t i o n .
T h e R i g h t H o n . IAIN M A C L E O D , M . P . ,
M i n i s t e r of L a b o u r a n d N a t i o n a l
Service.
T h e R i g h t H o n . t h e E A R L O F SELKIRK,
C h a n c e l l o r of t h e D u c h y of L a n c a s t e r .
Right
GEORGE,
The Right H o n .
PATRICK
BUCHAN-HEPBURN,
KILMUIR,
ECCLES,
M . P . , M i n i s t e r of W o r k s .
T h e following w e r e also p r e s e n t :
The Right H o n . R. H. TURTON,
M i n i s t e r of H e a l t h (Item 4).
The
Right
Hon.
Sir
MANNINGHAM-BULLER,
A t t o r n e y - G e n e r a l (Item
M.P.,
T h e Right H o n . AUBREY JONES, M . P . ,
M i n i s t e r of F u e l a n d P o w e r (Item 5).
REGINALD
T h e Right H o n . EDWARD HEATH, M.P.,
Parliamentary
Secretary,
Treasury
(Items 1-6).
Q.C.,
M.P.,
3).
Secretariat
T h e R i g h t H o n . Sir
Mr.
H.
O.
HOOPER.
:
NORMAN
BROOK.
O g
CONTENTS
Minute
No.
Subject
1
Parliament
2
H o u s e of L o r d s
Reform.
3
Capital Punishment
4
N a t i o n a l H e a l t h Service
5
Coal Production
Capital Expenditure o n Hospitals.
Open-cast Mining.
6
Rent Restriction
7
F i l m Policy
1. T h e C a b i n e t w e r e i n f o r m e d t h a t , d u r i n g t h e d e b a t e s o n t h e
C o n s o l i d a t e d F u n d Bill o n 1st A u g u s t , t h e O p p o s i t i o n w i s h e d t o
discuss t h e s i t u a t i o n arising f r o m t h e a t t e m p t of t h e E g y p t i a n
G o v e r n m e n t to seize c o n t r o l of t h e S u e z C a n a l . T h i s w o u l d b e a
s h o r t d e b a t e , lasting n o t m o r e t h a n t w o h o u r s .
Parliament.
The Lord President
said
of this k i n d s h o u l d b e d e b a t e d
t h e r e f o r e , t h e H o u s e of L o r d s
d e b a t e w o u l d h a v e to b e h e l d
2. T h e C a b i n e t r e s u m e d t h e i r discussion of t h e L o r d P r e s i d e n t ^
p r o p o s a l s for the r e f o r m of t h e H o u s e of L o r d s .
H o u s e of L o r d s .
Reform.
(Previous
CM^&53
^
, .
Minut4V
inu e
d
r
t h a t it w a s u n d e s i r a b l e t h a t a m a t t e r
s i m u l t a n e o u s l y in t h e t w o H o u s e s . If,
d e s i r e d t o discuss this s i t u a t i o n , t h e i r
on 2nd August.
TVze Lord President
said t h a t h e h a d given f u r t h e r t h o u g h t t o
*
& h t f t h e C a b i n e f s discussion o n 2 6 t h J u l y . T h e m a i n
o b j e c t i o n t h e n r a i s e d t o t h e c o m p r e h e n s i v e p l a n of r e f o r m o u t l i n e d
' y
P e e r s of P a r l i a m e n t w o u l d b e selected by t h e H o u s e of L o r d s itself.
H e h a d c o n s i d e r e d o t h e r m e t h o d s of limiting t h e r o l e of t h e h e r e d i t a r y
P e e r s in t h e S e c o n d C h a m b e r , b u t h e could t h i n k of n o n e w h i c h
w a s n o t o p e n to e v e n g r e a t e r o b j e c t i o n . H i s f u r t h e r c o n s i d e r a t i o n
of t h e p r o b l e m h a d served t o c o n f i r m his earlier c o n c l u s i o n t h a t t h e
real c h o i c e lay b e t w e e n t h e a l t e r n a t i v e s set o u t in C P . (56) 189, viz.,
t h e c o m p r e h e n s i v e p l a n of r e f o r m o u t l i n e d in t h a t m e m o r a n d u m
o r alternatively, a s i m p l e Bill c o n f e r r i n g p o w e r t o c r e a t e life P e e r s .
T h e s e c o n d of t h e s e c o u r s e s w a s , h o w e v e r , o n e w h i c h h e c o u l d n o t
c o n s c i e n t i o u s l y r e c o m m e n d . H e w a s strongly of t h e o p i n i o n t h a t
n o m e a s u r e of r e f o r m s h o u l d b e u n d e r t a k e n w h i c h did n o t i n c l u d e
s o m e l i m i t a t i o n of t h e r i g h t of h e r e d i t a r y P e e r s t o p a r t i c i p a t e in
t h e w o r k of the S e c o n d C h a m b e r ; h e h a d m a d e it p u b l i c l y k n o w n
o n m o r e t h a n o n e o c c a s i o n t h a t this w a s his v i e w ; a n d it w o u l d b e
i m p o s s i b l e for h i m t o ask t h e H o u s e of L o r d s t o p a s s a m e a s u r e of
r e f o r m w h i c h was limited t o a p o w e r t o c r e a t e life P e e r s .
T h e L o r d P r e s i d e n t s a i d t h a t in t h e s e c i r c u m s t a n c e s t h e C a b i n e t
m i g h t w i s h t o h a v e f u r t h e r t i m e in w h i c h t o c o n s i d e r w h a t c o u r s e
t h e y s h o u l d follow.
H i s i m m e d i a t e difficulty w a s t h a t h e h a d
u n d e r t a k e n t o discuss the. m a t t e r w i t h s o m e of t h e C o n s e r v a t i v e Peers
b e f o r e P a r l i a m e n t r o s e f o r t h e s u m m e r recess a n d h e w a s d u e to
see t h e m t h a t a f t e r n o o n .
H e suggested t h a t h e m i g h t t a k e t h a t
o p p o r t u n i t y of a s c e r t a i n i n g t h e i r views o n t h e c o m p r e h e n s i v e p l a n
of r e f o r m outlined in C P . (56) 189, p u t t i n g it f o r w a r d as a possible
p l a n for w h i c h h e h a d n o t yet o b t a i n e d t h e a p p r o v a l of his C a b i n e t
colleagues.
t
n
l
n
e
s
C
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P
t
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( 5 6 )
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Q
1 8 9
W
a
S
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h
a
t
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h
e
r
e
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t
a
r
P
e
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w
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t
o
s i t
a s
The Prime Minister
said t h a t t h e C a b i n e t s h o u l d c o n s i d e r this
p r o b l e m f u r t h e r d u r i n g t h e recess. A n y M i n i s t e r s w h o h a d specific
suggestions t o offer m i g h t s u b m i t t h e m in w r i t i n g t o t h e L o r d
P r e s i d e n t . M e a n w h i l e h e t h o u g h t t h a t the L o r d P r e s i d e n t m i g h t ,
as h e p r o p o s e d , a s c e r t a i n i n f o r m a l l y w h a t m e a s u r e of s u p p o r t t h e r e
w a s likely t o be, a m o n g C o n s e r v a t i v e Peers, for a c o m p r e h e n s i v e
p l a n of r e f o r m on t h e lines i n d i c a t e d in C P . (56) 189.
I n discussion it w a s s u g g e s t e d t h a t , if it w e r e d e c i d e d t o p r o c e e d
w i t h t h a t p l a n in t h e f o r t h c o m i n g session, t h e r e s o l u t i o n setting out
t h e details of the p l a n c o u l d b e d e b a t e d in t h e H o u s e of L o r d s in
t h e o p e n i n g days of t h a t session while t h e H o u s e of C o m m o n s w a s
c o m p l e t i n g its D e b a t e o n t h e A d d r e s s . This c o u r s e w o u l d h a v e the
a d v a n t a g e t h a t t h e d a t e s of t h e P r o r o g a t i o n a n d of t h e O p e n i n g of
t h e n e w session c o u l d be a n n o u n c e d , a c c o r d i n g t o p r e c e d e n t , before
P a r l i a m e n t rose for t h e s u m m e r recess. Its d i s a d v a n t a g e w a s t h a t
t h e G o v e r n m e n t w o u l d n o t be able t o a n n o u n c e in T h e Q u e e n ' s
h 1 Pi
S p e e c h a firm i n t e n t i o n t o i n t r o d u c e legislation for t h e r e f o r m of
t h e H o u s e of L o r d s : t h e y w o u l d n o t b e a b l e t o d o m o r e t h a n p r o m i s e
to lay before P a r l i a m e n t p r o p o s a l s o n this subject. T h e r e w a s g e n e r a l
a g r e e m e n t t h a t in all t h e c i r c u m s t a n c e s this d i s a d v a n t a g e w o u l d h a v e
to be accepted.
The Cabinet—
(1) A g r e e d t o r e s u m e , a t t h e i r m e e t i n g s d u r i n g t h e s u m m e r
recess, t h e i r c o n s i d e r a t i o n of t h e L o r d P r e s i d e n t s
p r o p o s a l s for t h e r e f o r m of t h e H o u s e of L o r d s .
(2) A u t h o r i s e d t h e L o r d P r e s i d e n t t o a s c e r t a i n i n f o r m a l l y w h a t
m e a s u r e of s u p p o r t t h e r e w o u l d b e a m o n g C o n s e r v a t i v e
P e e r s for a c o m p r e h e n s i v e p l a n of r e f o r m o n t h e lines
i n d i c a t e d in C P . (56) 189.
Capital
Punishment.
(Previous
Reference:
C M . (56) 53rd
Conclusions,
M i n u t e 9.)
3. The Prime Minister
said t h a t t h e e n q u i r i e s w h i c h t h e Chief
Whip had been making among G o v e r n m e n t supporters h a d not been
c a r r i e d far e n o u g h t o e n a b l e h i m t o f o r m a reliable e s t i m a t e of t h e
p r o s p e c t s of e n a c t i n g , a g a i n s t t h e v o t e s of t h e O p p o s i t i o n P a r t i e s , a
G o v e r n m e n t m e a s u r e a m e n d i n g t h e l a w of m u r d e r o n t h e g e n e r a l
lines i n d i c a t e d in C P . (56) 186.
H e himself w a s i n c r e a s i n g l y
i m p r e s s e d b y t h e s t r o n g feelings h e l d b y t h o s e G o v e r n m e n t
s u p p o r t e r s w h o f a v o u r e d a b o l i t i o n of t h e d e a t h p e n a l t y . E v e n if it
w e r e possible t o c a r r y t h e G o v e r n m e n t m e a s u r e w h i c h w a s n o w
e n v i s a g e d , h e f e a r e d t h a t t h e issue of a b o l i t i o n w o u l d b e raised e i t h e r
b y a n a m e n d m e n t o n t h a t Bill o r b y t h e s u b s e q u e n t i n t r o d u c t i o n
of a P r i v a t e M e m b e r ' s Bill p r o v i d i n g for t o t a l a b o l i t i o n ; a n d s t r o n g
feelings w o u l d b e a r o u s e d in t h e H o u s e of C o m m o n s if the
G o v e r n m e n t s o u g h t t o defeat e i t h e r of t h o s e a t t e m p t s b y t h e use
of t h e G o v e r n m e n t W h i p .
I n discussion it w a s a r g u e d t h a t , w h i l e their m i g h t be a small
m a j o r i t y i n t h e H o u s e of C o m m o n s i n f a v o u r of t h e t o t a l a b o l i t i o n
of t h e d e a t h p e n a l t y , t h e r e w a s r e a s o n t o believe t h a t in t h e c o u n t r y
as a w h o l e a m a j o r i t y of p u b l i c o p i n i o n w o u l d b e in f a v o u r of
r e t a i n i n g c a p i t a l p u n i s h m e n t for a l i m i t e d r a n g e of m u r d e r s o n t h e
lines s u g g e s t e d in C P . (56) 186. T h e G o v e r n m e n t w o u l d lose t h e
s y m p a t h y of a s u b s t a n t i a l b o d y of m o d e r a t e o p i n i o n if they failed
t o t a k e t h e o p p o r t u n i t y of r e g a i n i n g t h e initiative b y i n t r o d u c i n g
a m e a s u r e o n t h o s e lines. T h e p o i n t w a s also m a d e t h a t the
Government
must expect to
find
t h e m s e l v e s in
continuing
e m b a r r a s s m e n t if t h e y failed t o a s s u m e responsibility, as a
G o v e r n m e n t , for a m a t t e r w h i c h so closely affected t h e p r e s e r v a t i o n
of l a w a n d o r d e r . T h e y c o u l d n o t c o n t i n u e indefinitely t o leave s u c h
a m a t t e r t o be d e c i d e d b y a free v o t e of t h e H o u s e of C o m m o n s :
they would eventually be obliged to decide either to accept the
a b o l i t i o n of t h e d e a t h p e n a l t y o r t o insist t h a t it s h o u l d b e r e t a i n e d
for a l i m i t e d r a n g e of m u r d e r s .
It w a s , h o w e v e r , a g r e e d t h a t , in view of
Parliaments
p r e o c c u p a t i o n w i t h t h e i n t e r n a t i o n a l s i t u a t i o n , it w a s n o w less
i m p o r t a n t t h a t t h e G o v e r n m e n t s h o u l d a n n o u n c e their i n t e n t i o n s in
this m a t t e r before t h e s u m m e r recess.
The Cabinet—
(1) A g r e e d t h a t n o a n n o u n c e m e n t n e e d be m a d e before t h e
s u m m e r recess of t h e G o v e r n m e n t s i n t e n t i o n s in r e g a r d
to the law relating to capital punishment.
(2) A g r e e d t o r e s u m e t h e i r c o n s i d e r a t i o n of this q u e s t i o n d u r i n g
t h e c o u r s e of t h e s u m m e r recess.
National
Health
Service.
Capital
Expenditure
on Hospitals.
(Previous
Reference:
C M . (56) 6th
Conclusions,
M i n u t e 2.)
4. T h e C a b i n e t c o n s i d e r e d a m e m o r a n d u m by t h e M i n i s t e r
of H e a l t h ( C P . (56) 188) r e g a r d i n g t h e p r o v i s i o n to b e m a d e f o r
c a p i t a l e x p e n d i t u r e o n h o s p i t a l s in t h e financial y e a r 1 9 5 8 - 5 9 .
The Minister
of Health said t h a t a p r o v i s i o n of £ 1 0 m i l l i o n s ,
as t h e C h a n c e l l o r of t h e E x c h e q u e r h a d p r o p o s e d , for t h e r e p a i r a n d
r e n o v a t i o n of existing h o s p i t a l s i n 1958-59 w o u l d involve a s e r i o u s
delay i n t h e p r o g r a m m e of m o d e r n i s a t i o n w h i c h h a d b e e n p u t
f o r w a r d e a r l y in the p r e v i o u s y e a r . C o n d i t i o n s , especially in m e n t a l
h o s p i t a l s , w e r e d e p l o r a b l e a n d h e w a s satisfied t h a t t h e p r o g r a m m e
of m o d e r n i s a t i o n c o u l d n o t b e r e t a r d e d w i t h o u t risk of a b r e a k d o w n
in t h e h o s p i t a l service. H e h a d a l r e a d y s o u g h t to m a k e offsetting
e c o n o m i e s elsewhere in t h e N a t i o n a l H e a l t h S e r v i c e ; b u t the rising
e x p e n d i t u r e o n t h e h o s p i t a l service reflected t h e rise in t h e costs of
g o o d s a n d services.
The Chancellor
of the Exchequer
said t h a t it w a s n o t his
i n t e n t i o n t o m a k e a n issue of t h e figure of £1 million w h i c h w a s n o w
i n d i s p u t e . B u t his colleagues s h o u l d b e a w a r e t h a t t h e cost of t h e
N a t i o n a l H e a l t h Service w o u l d a m o u n t to s o m e £580 millions in
t h e c u r r e n t y e a r a n d t h a t e x p e n d i t u r e o n this scale m u s t h e l p t o
p e r p e t u a t e inflation unless steps c o u l d b e t a k e n t o r e d u c e it.
T h e C a b i n e t agreed t h a t t h e rising cost of the N a t i o n a l H e a l t h
Service g a v e c a u s e for serious c o n c e r n . E v e n t h o u g h t h e h o s p i t a l
building p r o g r a m m e could n o t be further curtailed, there might be
s c o p e for savings elsewhere in the H e a l t h Service. W i t h rising
p e r s o n a l i n c o m e s , it m i g h t b e justifiable t o curtail s o m e of t h e s e
services, o r t o r e q u i r e a h i g h e r p r o p o r t i o n of t h e cost t o b e p a i d by
t h e p a t i e n t . T h i s w a s o n e of t h e subjects t o be e x a m i n e d in t h e
c o u r s e of t h e review of civil e x p e n d i t u r e w h i c h w a s t o b e h e l d i n
the autumn.
The C a b i n e t A p p r o v e d , subject t o t h e p o i n t s m a d e in their d i s c u s s i o n ,
t h e p r o p o s a l m a d e in p a r a g r a p h 6 of C P . (56) 188.
Coal
Production.
Open-cast
Mining.
(Previous
References:
C M . (56) 8th
Conclusions,
M i n u t e 9, and
C M . (56) 46th
Conclusions,
M i n u t e 10.)
5. T h e C a b i n e t h a d b e f o r e t h e m a m e m o r a n d u m b y t h e
C h a n c e l l o r of t h e E x c h e q u e r ( C P . (56) 194) r e p o r t i n g
the
r e c o m m e n d a t i o n s of t h e C o m m i t t e e of M i n i s t e r s w h i c h h a d b e e n
a p p o i n t e d t o f o r m u l a t e a revised policy for t h e mining of o p e n - c a s t
coal.
It w a s p r o p o s e d t h a t t h e M i n i s t e r of F u e l a n d P o w e r s h o u l d b e
authorised to announce on a suitable occasion that the production
of o p e n - c a s t coal w a s e x p e c t e d t o c o n t i n u e at a high level for at
least t e n y e a r s , a n d t h a t m o r e g e n e r o u s c o m p e n s a t i o n s h o u l d b e p a i d
b o t h t o l a n d l o r d s a n d t o t e n a n t s . A n a v e r a g e a n n u a l o u t p u t of
12 - 6 m i l l i o n t o n s a y e a r w a s n o w c o n t e m p l a t e d over t h e p e r i o d
1 9 5 7 - 6 5 , b u t special c o n s i d e r a t i o n s w o u l d a p p l y t o t h e t w o y e a r s
i m m e d i a t e l y a h e a d , a n d t h e t o t a l o u t p u t for t h e years 1957 a n d 1958
t a k e n t o g e t h e r w o u l d be b e t w e e n 23% a n d 25 - 6 million t o n s . I t w a s
n o t p r o p o s e d t h a t a n y n e w legislation r e g a r d i n g t h e use of l a n d for
o p e n - c a s t m i n i n g s h o u l d b e i n t r o d u c e d in t h e n e a r future except as
p a r t of legislation dealing c o m p r e h e n s i v e l y w i t h t h e disposal of t h e
e m e r g e n c y p o w e r s relating t o l a n d .
D i s c u s s i o n s h o w e d t h a t t h e C a b i n e t w e r e in general a g r e e m e n t
w i t h t h e s e p r o p o s a l s . T h e following p o i n t s w e r e m a d e : —
(a) T h e p r o p o s a l s w o u l d b e m o r e a c c e p t a b l e t o f a r m e r s if t h e
a n n o u n c e m e n t of t h e G o v e r n m e n f s i n t e n t i o n s t o c o n t i n u e o p e n - c a s t
m i n i n g for ten m o r e y e a r s w e r e closely linked t o a p r o m i s e of
additional compensation.
The Chancellor
of the Exchequer
said t h a t t h e r a t e of
c o m p e n s a t i o n s h o u l d b e s u c h as w o u l d p e r s u a d e f a r m e r s t o a c c e p t t h e
u s e of l a n d f o r o p e n - c a s t m i n i n g . F r o m t h e financial a n d foreign
e x c h a n g e p o i n t s of view, e v e n t h e b e s t a g r i c u l t u r a l l a n d w a s m o r e
v a l u a b l e as a s o u r c e of c o a l t h a n as a s o u r c e of f o o d .
(b) The Secretary
of State for Scotland
s a i d t h a t , as S c o t l a n d
h a d o n l y a v e r y s m a l l p r o p o r t i o n of first-class a g r i c u l t u r a l l a n d , h e
h a d felt obliged t o r e s e r v e his p o s i t i o n r e g a r d i n g t h e u s e of h i g h - g r a d e
a g r i c u l t u r a l l a n d i n E a s t L o t h i a n for o p e n - c a s t m i n i n g .
(c) It w a s a g r e e d t h a t t h e M i n i s t e r of F u e l a n d P o w e r w o u l d n o t
a p p r o a c h t h e l o c a l a u t h o r i t i e s c o n c e r n e d w i t h r e g a r d t o t h e u s e for
o p e n - c a s t m i n i n g of t h e seven sites i n Y o r k s h i r e , m e n t i o n e d in
p a r a g r a p h 4 of C P . (56) 194, until h e h a d discussed the m a t t e r f u r t h e r
w i t h t h e M i n i s t e r of H o u s i n g .
The Cabinet—
A p p r o v e d , subject t o t h e p o i n t s m a d e in their discussion,
t h e p r o p o s a l s in C P . (56) 194.
Rent
Restriction.
(Previous
Reference:
C M . (56) 47th
Conclusions,
M i n u t e 5.)
'
6.
T h e C a b i n e t r e s u m e d t h e i r d i s c u s s i o n of t h e suggestion t h a t
it m i g h t be n e c e s s a r y for t h e m t o r e c o n s i d e r t h e i r earlier decision
t o p r o c e e d w i t h legislation t o a m e n d t h e R e n t R e s t r i c t i o n A c t s , i n
view of the i n t e n t i o n w h i c h t h e L a b o u r P a r t y h a d a n n o u n c e d t o
nationalise rented p r o p e r t y w h e n they were next returned to power.
I t w a s t h e view of t h e C a b i n e t , after f u r t h e r discussion of this
q u e s t i o n , t h a t t h e i r decision of 2 6 t h A p r i l s h o u l d b e c o n f i r m e d . N o t
m e r e l y did t h e R e n t R e s t r i c t i o n A c t s b e a r i n e q u i t a b l y o n l a n d l o r d s ,
w i t h t h e result t h a t p r o p e r t y w a s n o t k e p t i n p r o p e r r e p a i r , b u t t h e y
led t o injustices as b e t w e e n t e n a n t s a n d r e d u c e d t h e n u m b e r of
h o u s e s a v a i l a b l e f o r r e n t i n g . It w a s r i g h t t h a t t h e G o v e r n m e n t
s h o u l d t a k e s t e p s t o r e m e d y a s t a t e of affairs w h i c h t e n d e d t o i m p a i r
t h e m o b i l i t y of l a b o u r ; a n d t h e y s h o u l d n o t b e d e t e r r e d f r o m this
c o u r s e b y the fact t h a t t h e O p p o s i t i o n h a d d e c l a r e d t h e i r i n t e n t i o n
t o p u r s u e a p o l i c y w h i c h w o u l d n o t b e c o m p a t i b l e w i t h it.
The
G o v e r n m e n t were being urged by their supporters to take action on
t h e lines p r o p o s e d , a n d it h a d b e e n e s t a b l i s h e d t h a t s u c h a c t i o n w o u l d
be e n d o r s e d b y t h e H o u s i n g C o m m i t t e e of t h e C o n s e r v a t i v e P a r t y .
T h e p o i n t w a s m a d e , h o w e v e r , t h a t t h e n e w v a l u a t i o n for r a t i n g
w h i c h w a s d u e t o c o m e i n t o effect in 1961 w a s likely t o i n c r e a s e t h e
r a t e b u r d e n falling o n t e n a n t s . It w a s u n d e s i r a b l e t h a t t e n a n t s s h o u l d
be called u p o n , in q u i c k succession, t o p a y i n c r e a s e d r a t e s as well
as h i g h e r r e n t s .
T h e C o m m i t t e e of M i n i s t e r s w h i c h w a s n o w
reviewing local g o v e r n m e n t finance s h o u l d c o n s i d e r h o w this m i g h t
b e a v o i d e d . I t w a s also n o t e d t h a t s o m e difficulties c o u l d b e e x p e c t e d
to arise in the i m m e d i a t e a p p l i c a t i o n of t h e p r o p o s e d n e w legislation
o n r e n t s t o S c o t l a n d , w h e r e a g e n e r a l r e v a l u a t i o n of h o u s e p r o p e r t y
w o u l d b e in p r o g r e s s until 1961.
The Cabinet—
(1) C o n f i r m e d their, decision of 2 6 t h A p r i l t h a t legislation t o
a m e n d t h e R e n t R e s t r i c t i o n A c t s s h o u l d b e given p r i o r i t y
in t h e legislative p r o g r a m m e for t h e f o r t h c o m i n g session
of P a r l i a m e n t .
(2) Invited t h e L o r d P r i v y Seal t o a r r a n g e for t h e C o m m i t t e e of
M i n i s t e r s w h i c h w a s r e v i e w i n g local g o v e r n m e n t finance
t o c o n s i d e r , in t h e light of t h e C a b i n e f s discussion, t h e
p r o p o s e d c o n s e q u e n c e s of t h e f o r t h c o m i n g r e v a l u a t i o n
for r a t i n g as t h e y w o u l d affect t h e p r i v a t e t e n a n t .
F i l m Policy.
(Previous
Reference:
C . C . (53) 15th
Conclusions, M i n u t e 8.)
7. T h e C a b i n e t h a d before t h e m a m e m o r a n d u m b y t h e
C h a n c e l l o r of t h e E x c h e q u e r ( C P . (56) 193) o n t h e q u e s t i o n of
c o n t i n u e d financial assistance t o t h e f i l m - p r o d u c i n g i n d u s t r y in this
country. The Chancellor of the Exchequer
said t h a t , if a n a d e q u a t e s u p p l y of British films w a s n o t f o r t h c o m i n g , t h e r e w o u l d b e a loss of
£ 7 - 8 millions i n foreign e x c h a n g e , d u e to a decline in e x p o r t e a r n i n g s
a n d t h e cost of i m p o r t i n g a d d i t i o n a l A m e r i c a n films. T h e film­
p r o d u c i n g i n d u s t r y w o u l d c o n t i n u e t o n e e d financial assistance for
this p u r p o s e . It w a s n o t p r o p o s e d t o m a k e f u r t h e r a d v a n c e s f r o m
p u b l i c funds t o t h e N a t i o n a l F i l m F i n a n c e C o r p o r a t i o n , b u t it w o u l d
b e n e c e s s a r y t o w r i t e off t h e a d v a n c e s of £ 3 - 7 millions w h i c h h a d
a l r e a d y b e e n m a d e . F i n a n c i a l assistance w a s also afforded t o t h e
p r o d u c i n g i n d u s t r y f r o m t h e p r o c e e d s of a levy o n t h e gross receipts
of film e x h i b i t o r s . T h i s levy served t h e p u r p o s e of a tariff o n
i m p o r t e d films a n d , as n o satisfactory a l t e r n a t i v e m e a n s of p r o t e c t i n g
t h e h o m e i n d u s t r y c o u l d b e devised, it w o u l d h a v e t o b e c o n t i n u e d .
T h e e x h i b i t o r s w e r e , h o w e v e r , u n w i l l i n g t h a t t h e levy s h o u l d b e
c o n t i n u e d o n a v o l u n t a r y basis, a n d it w a s p r o p o s e d t o seek s t a t u t o r y
a u t h o r i t y for it. T h e legislation t o give effect t o this p r o p o s a l w o u l d
b e c o n t e n t i o u s a n d t h e E c o n o m i c Policy C o m m i t t e e , w h o h a d
c o n s i d e r e d t h e m a t t e r , h a d felt s o m e d o u b t s a b o u t i t ; b u t t h e
P r e s i d e n t of t h e B o a r d of T r a d e a n d h e c o u l d see n o a l t e r n a t i v e c o u r s e
of action.
The President of the Board of Trade said t h a t , in o r d e r t o avoid
a decline in t h e p r o d u c t i o n of films b e c a u s e of d o u b t s a b o u t t h e
G o v e r n m e n f s i n t e n t i o n s , h e w i s h e d t o a n n o u n c e before P a r l i a m e n t
r o s e for t h e s u m m e r recess t h a t legislation w o u l d b e i n t r o d u c e d t o
p u t t h e levy o n a s t a t u t o r y basis. It w o u l d n o t be e n o u g h to
a n n o u n c e in g e n e r a l t e r m s t h a t t h e p r o d u c i n g i n d u s t r y w o u l d c o n t i n u e
t o receive financial assistance.
The
Cabinet­
(1) A p p r o v e d t h e p r o p o s a l s in C P . (56) 193.
(2) A u t h o r i s e d , subject t o their e v e n t u a l decision o n t h e
c o m p o s i t i o n of t h e legislative p r o g r a m m e for
the
f o r t h c o m i n g session, t h e p r e p a r a t i o n of a Bill t o give, effect
t o t h e s e p r o p o s a l s for t h e c o n s i d e r a t i o n of the Legislation
Committee.
Cabinet Office,
31st July,
S.W.1,
1956.