§ MR. BRADLAUGHI beg to ask the President of the Local Government Board whether he can fix an early date for the holding of the promised inquiry into the way in which the Corporation of Newcastle-under-Lyme have expended the proceeds of a loan of £23,624, originally borrowed for certain specific purposes, several of which have not been carried out; whether, when an urban Sanitary Authority borrows money under the sanction of the Local Government Board, that Board has any control which will enable it to secure that the money is expended for the purposes for which it is borrowed; and whether such authorities are under statutory or other obligation to publish to the ratepayers any accounts which will show how the proceeds of loans are expended and from time to time otherwise dealt with?
§ MR. RITCHIEThe Local Government Board have received a communication from one of the Councillors of the Borough of Newcastle-under-Lyme, in which it is alleged that certain monies which have been raised under the sanction of the Board have not been wholly applied to the purposes for which the loan was sanctioned. The Board have forwarded a copy of the communication as regards these allegations to the Town 1129 Council, but have not yet received their reply. The Board have been informed of a further proposal of the Town Council to borrow. No sanction to a further loan will be given without a local inquiry, and at that inquiry the question as to the appropriation of the proposed loan will be considered. In the case of Local Boards and other authorities, whose accounts are subject to the audit of the District Auditors, it would be the duty of the Auditor to satisfy himself that monies borrowed for a particular purpose are applied to that purpose. In the case, however, of a Municipal Corporation the accounts are not audited by the Auditors appointed by the Board. Cinder Section 233 of the Municipal Corporations Act, 1882, the Treasurer's accounts are open to the inspection of the Council, and an abstract of these accounts is to be open to the inspection of all the ratepayers of the borough, and copies thereof are to be delivered to ratepayers on payment of a reasonable price. These provisions are made applicable to the accounts of a Town Council acting as an Urban Authority by Section 246 of the Public Health Act.
§ MR. BRADLAUGHAm I to understand that an inquiry will be made if the right hon. Gentleman is not satisfied In regard to the manner in which the money has been expended?
§ MR. RITCHIEThe inquiry I have spoken of would be an inquiry as to the circumstances connected with a further application for a loan. In regard to all applications for power to raise money by loan an inquiry is held; but I have pointed out that the Local Government Board have no power to appoint Auditors. They do not possess the same control over the expenditure of money in the case of Corporations as they do in the case of Local Boards.
§ MR. BRADLAUGHIf the application for a further loan is not persisted in have the Local Government Board no authority to inquire as to the expenditure of the money already borrowed?
§ MR. RITCHIENo, Sir; we have no authority; none.