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Local Authorities (Financialprovisions) Bill

Volume 47: debated on Wednesday 9 November 1921

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Order of the Day for the House to be put into Committee read.

Moved, That the House do now resolve itself into Committee —( The Earl of Onslow.)

On Question, Motion agreed to.

House in Committee accordingly.

[THE EARL OF DONOUGHMORE in the Chair.]

Clause 1 agreed to.

Clause 2:

Power to appoint receiver where metropolitan borough council fails to meet precept.

2 —(1) Where in pursuance of a precept issued by an authority either before or after the passing of this Act any sum is payable, directly or indirectly, by the council of a metropolitan borough to that authority, and the Minister of Health is satisfied that the council have refused or neglected to raised, the amount by a rate, or that, having raised the amount by a rate, the council have refused or neglected to pay the amount due under the precept, the Minister may issue a certificate to that effect, and thereupon the authority shall have the like power of applying for the appointment of a receiver, and a receiver may upon such application be appointed in like manner and, when appointed, have the like power as if the authority were a secured creditor of the council for the stun due under the precept with interest thereon at the rate of six per centum per annum from the date when the amount became payable under the precept, and that sum and interest were due under a security issued under the Local Loans Act, 1875, charging the same on the rates leviable by and on all other property of the council, and the conditions under which a receiver may in such a case be appointed under section twelve of that Act were fulfilled, and that section shall apply accordingly:

Provided that the application may he made by the Minister instead of by the authority if the Minister thinks fit.

(2) Where an authority have issued a precept to a board of guardians in the administrative county of London and the Minister is satisfied that the board of guardians have failed to include the amount of the precept in any precept issued by them to a metropolitan borough council, the Minister may, by order, cancel the precept to the guardians and authorise the authority to issue a precept to the council for the amount due under the precept to the guardians, and in that ease the amount specified in the precept to the council shall become payable to the authority in the same manner as it would have become payable to the guardians if the precept had been issued by them.

(3) The power of the receiver appointed under this section to levy a rate may be exercised, notwithstanding that the expenses of the authority, to meet which the rate is made were incurred in a period prior to that in which the rate is made, and notwithstanding that the council may have already made and levied a rate for such expenses.

(4) For the purposes of this section—

the expression "authority" means any body or person having power to issue a precept payable either directly or indirectly nut of the general rate leviable by a metropolitan borough council;

the expression "precept" includes a warrant or contribution order.

(5) The powers conferred by this section shall he in addition to and not in derogation of any other powers of enforcing compliance with a precept issued by an authority.

moved, after subsection (3), to insert the following new subsection:

" (4) Where in pursuance of a precept issued by an authority either before or after the passing of this Act, any sum is payable, directly or indirectly, by the council of a metropolitan borough to that authority, the authority may set off any sum payable to the council from the authority against the sum payable by the council in pursuance of the precept, without prejudice to proceedings for the recovery of the balance (if any) of the last-named sum under the provisions of this section."

The noble Lord said: I beg to move the Amendment which stands in my name on the Paper.

Amendment moved—

Page 3, line 13, at end insert the said new sub-section —(Lord Hemphill.)

I beg to accept this Amendment with one trifling modification; that is to say, that it shall read "the authority may set off any sum payable to the council by the authority" instead of "from the authority." Perhaps the noble Lord will accept that.

On Question, Amendment, as altered, agreed to.

Clause 2, as amended, agreed to.

Clauses 3, 4 and 5 agreed to.

Clause 6:

Relaxation of limit of borrowing powers of local authorities in certain cases.

6 —(1) Any money borrowed by a local authority before the first day of April nineteen hundred and twenty-three, if certified by the Minister of Health to have been borrowed for the purpose of any work undertaken by the authority with a view to the provision of employment for unemployed persons, and any money borrowed under the last foregoing section, shall not be reckoned as part of the debt of the local authority for the purposes of any enactment limiting the powers of borrowing by that authority.

(2) Until the first clay of April nineteen hundred and twenty-three, subsection (3) of section two hundred and thirty-four of the Public Health Act, 1875 (which probibits the Minister of Health from sanctioning a loan in certain cases until one of his inspectors has held a local inquiry and reported to the Minister), shall cease to have effect.

Amendment moved—

Page 5, lines 19 and 20, leave out (" the last foregoing section ") and insert (" under the provisions of this Act for the purpose of providing temporarily for current expenses ") —(The Earl of Onslow.)

On Question, Amendment agreed to.

Clause 6, as amended, agreed to.

Clause 7 agreed to.

Clause 8:

Extent.

8 —(1) This Act shall not apply to Scotland. (2) This Act shall apply to Ireland, subject to the following modifications: —

  • (a) A reference to the Local Government Board for Ireland shall be substituted for any reference to the Minister of Health or the Minister;
  • (b) "Local authority" shall mean the council of any county, county borough or county district, and the board of guardians of any union;
  • (c) For the purposes of section six of the Government of Ireland Act, 1920, this Act shall be deemed to be an Act passed before the appointed day.
  • The Amendment to this clause which I have placed on the Paper is also drafting.

    Amendment moved—

    Page 5, line 40, at end insert (" and a reference to section two hundred and thirty-eight of the Public Health (Ireland) Act, 1878, shall be substituted for the reference to section two hundred and thirty-four of the Public Health Act, 1875 ") —(The Earl of Onslow.)

    On Question, Amendment agreed to.

    Clause 8, as amended, agreed to.

    Remaining clause agreed to.

    My Lords, I beg to move the Resolution standing in my name in regard to this Bill.

    Moved, That Standing Order No. XXXIX be considered in order to its being dispensed with —( The Earl of Onslow.)

    On Question, Motion agreed to, and ordered accordingly.

    Then (Standing Order No. XXXIX having been suspended); Bill read 3a , and passed, and returned to the Commons.