§ SIR W. FOSTER (Derbyshire, Ilkeston)
I beg to ask the President of 945 the Local Government Board whether, when the Holland County Council recently applied for sanction to a loan for the purchase of land for small holdings, the Local Government Board objected to give such sanction unless the amount of rent to be charged for the land was limited to the sum required to cover the interest with a margin for eventualities; whether the auditor of the Local Government Board ruled in a previous case that the Holland County Council had not complied with the law in charging a rent that would cover all outgoings; and whether, if the view is still held, he could point out how the funds for the repayment of principal are to be obtained by a county council purchasing land under the Small Holdings Act?
§ THE PRESIDENT OF THE LOCAL GOVERNMENT BOARD (Mr. H. CHAPLIN,) Lincs, Sleaford
The loan in the case referred to was sanctioned by the Local Government Board in April last. At the inquiry with reference to the application complaint was made that it was proposed that the rents to be paid by the tenants of the small holdings should cover, amongst other expenses, the repayment of the principal of the loan. This arrangement the law officers of the Crown have advised was not one that should be made by the county council, and this was pointed out to them by the Board. As regards the last paragraph of the Question, the funds for the repayment of the principal of the loan will be obtainable from the county rate within the limits specified in section 18 (2) of the Small Holdings Act.