HC Deb 16 November 1888 vol 330 cc1382-4
SIR GEORGE CAMPBELL (Kirkcaldy, &c.)

asked Mr. Chancellor of the Exchequer, with reference to the statement of the Commissioners of Public Works in Ireland, that the improvement loans granted by them to owners of land are mostly to persons who have acquired ownership under Lord Ashbourne's Act, Whether he has approved of these advances, under the Rules applicable to owners, to nominal owners, who have not appreciably reduced their debt to the State for the whole purchase-money; whether the Government have any lien whatever for these further advances on the one-fifth purchase-money when deposited by the landlord; or whether, in the event of default and failure to realize both advances, the whole purchase-money must first be credited, and the loss on the second advance will fall on the Government alone, with no security whatever; and, whether it is at all clear that both advances have priority over any previous obligations for which the tenant-right may have been pledged?

THE CHANCELLOR OF THE EXCHEQUER (Mr. GOSCHEN) (St. George's, Hanover Square)

Of the improvement loans granted to owners in the six months preceding the last Annual Report of the Board of Works, 29 out of 55 were to purchasers under Lord Ashbourne's Act. Such persons cannot, of course, as yet have appreciably reduced their debt to the State in respect of the purchase-money of their properties. But no loans have been sanctioned to purchasers under Lord Ashbourne's Act, except where the Board of Works were satisfied that the selling value of the property was in excess of the combined charges for purchase and for the land improvement loan, and after notice had been given to the Land Commissioners of the application for the loan. The hon. Member should bear in mind that the value of the property in the hands of the purchaser under Lord Ashbourne's Act includes the tenant-right, which furnishes a margin of security in the case of these loans, and also that the annual value of the property is improved by the loan in excess of the extra charge imposed upon it. With regard to the second and third paragraphs of the Question, the Government have no lien for such advances upon the one-fifth of the purchase-money deposited by the landlord; but in the event of a sale of the property by the Land Commissioners, it would be sold subject to the Board's charge for the improvement loan, which, they are advised, has a priority secured to it. The Board are likewise advised that it is perfectly clear that both charges, that for the purchase-money as well as that for the improvement loan, have a priority over any previous obligations attaching to the tenant-right of the purchaser.

SIR GEORGE CAMPBELL

The Chancellor of the Exchequer has given reasons why the Commissioners conclude that they can make these advances with safety. I do not think that that is any answer to the Question I have asked. Does he, as Chancellor of the Exchequer, approve of the proceedings?

MR. GOSCHEN

Of course, it is impossible that the Treasury could investigate every single one of these cases; there are no means of doing so. But the principle of such advances has been sanctioned, and a Schedule containing the particulars is submitted to the Treasury.

MR. JOHN MORLEY (Newcastle-upon-Tyne)

What is the amount that has been advanced?

MR. GOSCHEN

If my right hon. Friend will ask me that Question on another occasion, I will answer him. I have not the figures with me.