§ MR. HUDSONI beg to ask the President of the Local Government Board if he has seen the Report of the inquiry held by Mr. H. Percy Boulnois, M.I.C.E., Inspector of the Department, into an application made by the City Council of Newcastle-on-Tyne for leave to borrow £7,665 for works of street improvements, wherein the said inspector stated that the Board would not sanction the loan if the corporation regular staff were to be employed on the work, but if special men were employed for the purpose the loan might be granted; and can he state the reason of this order, if such order has been given.
§ * MR. JOHN BURNSThe view taken by the Local Government Board is that the wages of workmen permanently employed by a local authority should not be paid out of borrowed money, and 558 consequently it is their practice to exclude from the amount to be borrowed for works proposed to be executed by the authority any sums which would be paid in respect of such wages. In the present instance, I understand from the inspector's Report that he thinks that each of the intended works will be carried out by gangs specially employed for the purpose. If this course is adopted, there will be no objection to including their remuneration in the loan.
§ MR. HUDSONWill this rule in any way prevent municipal corporations from doing their own work?
§ * MR. JOHN BURNSCortainly not. It is drawn up in the interest of sound equitable finance.