SECOND READING. (Hansard, 16 May 1892)

§ *(3.10.) SIR J. LUBBOCK (London University)

As this Bill constitutes a new departure, perhaps the House will expect me to say a few words in explanation on moving the Second Reading. The House has imposed on the London County Council, and the London County Council alone, the obligation of introducing an annual Money Bill, and we considered that under the circumstances we might fairly ask Her Majesty's Government to take charge of the measure. Up to last year the Bill was introduced by the Government, but, the Government having declined to undertake the duty any longer, I now have to move the Second Reading. I have no desire to go back on the question which was debated at length last year, and merely mention it now in explanation. The powers of the Metropolitan Board of Works to borrow were derived from various Acts, which powers have passed to the London County Council, together with the powers conferred by the Local Government Act, 1888. The series of Acts relating to the finances of the Metropolitan Board of Works began in 1869, the Act of that year containing the original provisions authorising the issue of Metropolitan Consolidated Stock. Further Acts were passed in 1870, 1871, and 1875, and since 1875 Acts have been passed annually. Since that date it has been arranged that the actual power of raising money shall be limited year by year to the requirements of the year; and Bills conferring the Powers assumed to be needful have been introduced annually as Public Bills on the responsibility of the Trea- 942 sury, and have been passed into law. The form of these Acts has differed almost every year, as experience from time to time has shown some alteration in the system of accounts to be desirable. In many of these Acts clauses have thus been introduced relating not only to money powers conferred on the Council or their predecessors during the particular year, but which have altered the general enactments in force under previous Acts. In the result there can be no doubt the series of Acts has reached an unsatisfactory condition, and the complications were made worse by the passing of the Local Government Act of 1888. That Act, while it purported to provide in general terms that the powers of borrowing and raising money should be exercised by the Council in accordance with the Acts relating to the Metropolitan Board of Works, introduced several alterations and contained sundry provisions with reference to the financial powers of the Council, which were inconsistent with the Acts of the Metropolitan Board. This state of things led to a good deal of criticism from time to time in both Houses of Parliament, it being justly observed that it was practically impossible for anybody to understand from the Bills as annually presented, and the current series of Acts, what powers the Council possessed, or how far those powers were being exercised in accordance with the law. Under these circumstances, it has been thought better to repeal the old Acts and place the law as it stands in a clear and intelligible form before Parliament. We do not wish to alter the law, but merely to place matters before the House in a way Members can understand, and this I hope has been done in a satisfactory manner; but of course we are ready to consider any suggestions that may be made in reference thereto. Passing now to the financial part of the Bill, the Bill confers borrowing powers on the London County Council to the the extent of £5,800,000. At the present moment the amount of Metropolitan Consolidated Stock outstanding is £28,811,000, against which the amount standing to the credit of the Consolidated Loans Fund is £11,802,000. There are, however, some other debts and liabilities 943 imposed on the Council, transferred from the Metropolitan Board of Works, and in connection with arrangements made under Local Acts for the counties of Surrey and Middlesex, and the result is that the total liabilities of the London County Council amount to about £30,000,000, while, on the other hand, there are assets in the Consolidated Loan Fund to the amount of £13,000,000, the net liabilities being therefore £17,000,000. But although the Bill does sanction these large borrowing powers of the Council for the next eighteen months, the facts are not quite so serious as might, at first sight, appear. We are obliged to insert in the Bill the maximum amounts which may be required for each purpose. Of the total amount, the sum of £2,900,000 is a re-grant of amounts sanctioned in previous Acts, and, again, £2,200,000 is for loans to be made by the Council to other Metropolitan Authorities, £1,250,000 being new, and, of course, requiring the consent of Her Majesty's Government. The new borrowing powers created for the Council itself amount to £1,600,000. The principal amounts in the Bill are as follows:—Blackwall Tunnel, £750,000; Main Drainage, £600,000; various street improvements, £450,000; housing of the working classes, £420,000; expenditure in connection with lunatic asylums, £320,000; capital expenditure on parks under the control of the Council, £250,000; purchase of tramways, £200,000; for purposes of the Fire Brigade service, £100,000. These are the principal amounts, and I conclude the House will not wish me to go into details in reference to them, for they may be more conveniently discussed at a subsequent stage of the Bill. I do not know that there is any opposition to the Bill, and having stated briefly the circumstances under which the Bill has been introduced, I hope the House will now give it a Second Reading.