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Public Utilities (Revenue Deficiencies)

Volume 416: debated on Thursday 29 November 1945

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asked the Minister of Health when and upon what terms repayment will be required of 25 per cent. of the advances made to local authorities financially affected by the war in respect of deficiencies in the revenues of public utilities operated by the local authorities; if he is aware that such repayment will necessitate substantially increased charges to the consumers; and if he will consider treating such loans as grants until the financial position of the local authority has recovered from the effects of the war.

The terms of any repayments required from local authorities will be one of the matters to be discussed with each of the local authorities concerned, and, where necessary, the repayments will be spread over a period of years. Except in the case of the Metropolitan Water Board, the sums to be repaid will not be a direct charge on the revenues of the public utility undertakings operated by the local authority, but will be paid out of their general rate fund.