HC Deb 04 June 1896 vol 41 cc442-3

(1.) The total amount advanced by the Treasury under this Act shall not at any one time exceed one million pounds, of which a sum not exceeding two hundred and fifty thousand pounds may be expended for the purpose of special advances under this Act.

(2.) The National Debt Commissioners may, out of any money for the time being in their hands on account of savings banks, lend to the Treasury, and the Treasury may borrow from the National Debt Commissioners such money as may be required for the purpose of advances by the Treasury under this Act, on such terms as to interest, sinking fund, and period of repayment (not exceeding thirty years from the date of the loan) as may be agreed on between the National Debt Commissioners and the Treasury.

(3.) The sums so lent by the National Debt Commissioners shall be repaid out of money provided by Parliament for the purpose, and if and so far as that money is insufficient shall be charged on, and payable out of, the Consolidated Fund, or the growing produce thereof.

MR. STRACHEY moved to reduce the amount which may be expended for the purpose of special advances from £250,000 to £50,000. It seemed to him that, in making an experiment of this kind, which was so novel to British ideas, it would be well to limit the sum disposable by way of free grant to a very small amount indeed. If, however, the President of the Board of Trade thought the figure he had suggested too small, he should be ready to meet him half-way.

MR. RITCHIE

thought £250,000, the sum mentioned in the Bill, was a reasonable sum, and he should be sorry to see it reduced at all.

DR. CLARK

opposed the Amendment, and indeed he wished to make it more clear that the £250,000 was for grants, and not for loans.

MR. J. W. LOGAN (Leicester, Harborough)

was strongly opposed to these free grants, because it seemed certain that the prospective benefits under the Bill would go into the pockets of one class—namely, the owners of land in the neighbourhood of these railways; and on that account he wanted to limit the free grants as much as possible.

Question put, "That the words 'two hundred and' stand part of the Bill."

The House divided:—Ayes, 232; Noes. 87.—(Division List, No. 218).

DR. CLARK moved to leave out "special advances" and insert "free advances." He said an experiment was about to be tried for the purpose of aiding agriculture and fishing. Of the million, three-quarters was to be lent at the usual rate of £3 2s. 6d., and a quarter of a million was to be used as special advances, which were to be made at any rate of interest less than that named. He thought the three-quarters ought to be lent at lower rates of interest than £3 2s. 6d., and the quarter of a million should be used as free grants.

MR. RITCHIE

said the Treasury and the Board of Trade had consulted together, and had come to the conclusion that it would be better that the £250,000 should be lent on easy terms and that it would be a great mistake to give it in grants.

MR. BRYCE

said he quite agreed with the right hon. Gentleman. He must express a hope that no part of the money would be given, but that all would be lent.

Amendment, by leave, withdrawn.

Clause 7,—