HC Deb 23 November 1909 vol 13 cc93-7

(1) The Land Commission in determining under Sub-section (2) of Section one or under Section five of the Act of 1903 whether the agreed price of a holding is equitable shall have regard to the respective interests of the landlord and tenant in the holding and in the improvements thereon, and the price shall not be deemed to be equitable if it appears to the Land Commission that any substantial part thereof represents the value of improvements made by the tenant or his predecessors in title for which he or they have not been paid or compensated by the landlord or his predecessors in title.

(2) Any question which may arise under this Section as to—

  1. (a) whether an improvement was or was not made by the tenant or his predecessors in title; or
  2. (b) whether the tenant or his predecessors in title have or have not been paid or compensated for any improvement;
may (subject and without prejudice to any previous determination under the Land Law Acts) be determined by the Land Commission, who may, in their discretion, refer the question to a Legal Assistant Commissioner, and the determination of the Land Commission or such Commissioner, as the case may be, shall be final.

Lords Amendment: Leave out Clause 20.

Question proposed: "That this House doth agree with the Lords in said Amendment."

Mr. BIRRELL

This is nearly the last, if not quite the last, of my broken eggs. I regret that the Clause should have been omitted, but I none the less ask the House to agree to the Amendment. The object of the Clause was to meet the case where the calculation of the price of a holding included the price of the tenant's improvements which were the tenant's own property. I think it is only fair to say that such cases are admittedly not of frequent occurrence. There is no doubt that the force of the argument against this Clause consisted in the fact that it authorised the tearing up of contracts and involved offensive investigations by the rent-fixing tribunal. These are the objections involved in the Clause. I think they were overcome by the sense of equity in the nature of the transaction itself, but at the same time the Clause being one which excited the greatest opposition in the House of Lords, I have, for reasons which I need not refer to again, to ask the House to agree to the Lords Amendment.

Mr. DILLON

I am very sorry the right hon. Gentleman has consented to have this egg broken. It shows that the landlords understand their own interests exceedingly well. This Clause does more than the right hon. Gentleman alluded to in his statement. The real genesis of the Clause is to be found in Clause 5 of the Bill of of 1903, which is as follows:

"In the case of the sale of an estate where an application for an advance, to which the provisions of Sub-section one of Section one of this Act do not apply, is made, the Land Commission may, subject to the limitations in the Land Purchase Acts, advance the whole or part of the purchase money if they are satisfied with the security and are of opinion that, having, regard to all the circumstances of the case, the agreed price is equitable."

For some time the Estates Com[...]sioners held the view—in fact, the[...] it still—that the plain interprets[...] that Clause was that they were to have regard to all the circumstances before they agreed to advance the money for the price. Then came a decision—I forget whether it was by the Court of Appeal or by one of the judges—that that was not the meaning of these words. The Court held that the Commissioners were only to have regard to the rights of the remainder man, and not to the rights of the tenants, atlhough they were directed by the Clause to have regard to all the circumstances of the case. Clause 20 of this Bill is far more comprehensive than the Chief Secretary would have us believe. It is, first of all, a reversion of that judgment which deprived the tenant of the protection supposed to be given by the Act of 1903, and it directs the Commissioners in finding out whether the price is equitable that they shall have regard to the rights of the landlord and the tenant, and not only the remainder man. Then it goes on to say the price shall not be deemed to be equitable if it appears to the Land Commission that any substantial part thereof represents the value of improvements made by the tenant or his predecessors in title for which he or they have not

been paid or compensated by the landlord or his predecessors in title." The Chief Secretary said that in his opinion such cases would be exceedingly few. I entirely differ. I think they form a large proportion of the sales in Ireland. The man who goes down to inspect for the Commission does not go into the question of the equity of the price; he goes into the question of security. It has over and over again been given in evidence that in considering the question of security the inspector takes into account the whole of the holding as it stands. We all know very well that a tenant's interest is sometimes more than half of the entire holding. Therefore I say that in many instances the unfortunate tenants in these sales are buying back their own improvements, which really ought to be their own property. This Clause, therefore, is not the small matter which the Chief Secretary tried to make out. In the first place, it restores what was originally supposed to be the meaning of Clause 5 of the Act of 1903, and it further says that in determining the equity of the price the Land Commission shall have regard to the tenant's improvements.

The House divided: Ayes, 179; Noes, 80.

Division No. 901.] AYES. [8.0 p.m.
Abraham, William (Rhondda) Cleland, J. W. Harvey, A. G. C. (Rochdale)
Acland, Francis Dyke Clough, William Haworth, Arthur A.
Ainsworth, John St[...]rling Cochrane, Hon. Thomas H. A. E. Hazel, Dr. A. E. W.
Allen, A. Acland (Christchurch) Collins, Stephen (Lambeth) Hedges, A. Paget
Allen, Charles P. (Stroud) Collins, Sir Wm. J. (St. Pancras, W.) Helme, Norval Watson
Astbury, John Meir Compton-Rickett, Sir J. Henry, Charles S.
Baker, Joseph A. Corbett, C. H. (Sussex, E. Grinstead) Herbert, Col. Sir Ivor (Mon. S.)
Balcarres, Lord Corbett, T. L. (Down, North) Higham, John Sharp
Balfour, Robert (Lanark) Cornwall, Sir Edwin A. Hobart, Sir Robert
Banbury, Sir Frederick George Cotton, Sir H. J. S. Holt, Richard Durning
Barker, Sir John Cox, Harold Hooper, A. G.
Barlow, Percy (Bedford) Craig, Charles Curtis (Antrim, s.) Horniman, Emslie John
Barnard, E. B. Crosfield, A. H. Hyde, Clarendon G.
Barran, Sir John Nicholson Davies, Timothy (Fulham) Idris, T. H. W.
Barry, Redmond J. (Tyrone, N.) Davies, Sir W. Howell (Bristol, S.) Illingworth, Percy H.
Beale, W. P. Dobson, Thomas W. Isaacs, Rufus Daniel
Benn, Sir J. Williams (Devonport) Doughty, Sir George Jackson, R. S.
Bennett, E. N. Douglas, Rt. Hon. A. Akers- Johnson, W. (Nuneaton)
Berridge, T. H. D. Duncan, J. Hastings (York, Otley) Jones, William (Carnarvonshire)
Bethell, T. R. (Essex, Maldon) Duncan, Robert (Lanark, Govan) Kerry, Earl of
Birrell, Rt. Hon. Augustine Edwards, A. Clement (Denbigh) Keswick, William
Boulton, A. C. F. Elibank, Master of Kimber, Sir Henry
Brigg, John Evans, Sir S. T. King, Alfred John (Knutsford)
Bright, J. A. Everett, R. Lacey Lamb, Edmund G. (Leominster)
Brunner, J. F. L. (Lancs., Leigh) Falconer, J. Lamb, Ernest H. (Rochester)
Brunner, Rt. Hon. Sir J. T. (Cheshire) Fell, Arthur Lamont, Norman
Buckmaster, Stanley O. Fenwick, Charles Layland-Barratt, Sir Francis
Burns, Rt. Hon. John Fletcher, J. S. Lever, A. Levy (Essex, Harwich)
Butcher, Samuel Henry Fullerton, Hugh Levy, Sir Maurice
Buxton, Rt. Hon. Sydney Charles Gooch, George Peabody (Bath) Lewis, John Herbert
Byles, William Pollard Gooch, Henry Cubitt (Peckham) Long, Rt. Hon. Walter (Dublin, S.)
Cameron, Robert Greenwood, Hamar (York) Lonsdale, John Brownlee
Campbell, Rt. Hon. J. H. M. Gretton, John Lupton, Arnold
Carlile, E. Hildred Gulland, John W. Lynch, H. B.
Cave, George Hancock, J. G. MacCaw, Wm. J. MacGeagh
Cawley, Sir Frederick Harcourt, Robert V. (Montrose) Macdonald, J. M. (Falkirk Burghs)
Channing, Sir Francis Allston Hardy, George A. (Suffolk) Maddison, Frederick
Cheetham, John Frederick Harmsworth, Cecil B. (Worcester) Markham, Arthur Basil
Cherry, Rt. Hon. R. B. Harmsworth, R. L. (Caithness-shire) Marks, G. Croydon (Launceston)
Marnham, F. J. Rendall, Athelstan Thomas, Sir A. (Glamorgan, E.)
Massle, J. Renwick, George Thompson, J. W. H. (Somerset, E.)
Menzies, Sir Walter Roberts, Charles H. (Lincoln) Toulmin, George
Middlebrook, William Roberts, Sir J. H. (Denbighs) Vivian, Henry
Moore, William Roberts, S. (Sheffield, Ecclesall) Ward, John (Stoke-upon-Trent)
Morgan, G. Hay (Cornwall) Robertson, J. M. (Tyneside) Warner, Thomas Courtenay T.
Morse, L. L. Robson, Sir William Snowdon Waterlow, D. S.
Murray, Capt. Hon. A. C. (Kincard.) Roch, Walter F. (Pembroke) White, Sir George (Norfolk)
Myer, Horatio Rogers, F. E. Newman White, Sir Luke (York, E. R.)
Newnes, F. (Notts, Bassetlaw) Rose, Sir Charles Day Whittaker, Rt. Hon. Sir Thomas P.
Nicholson, Wm. G. (Petersfield) Rowlands, J. Wiles, Thomas
Nussey, Sir Willans Rutherford, V. H. (Brentford) Wills, Arthur Walters
Pearce, William (Limehouse) Rutherford, Watson (Liverpool) Wilson, Henry J. (York, W. R.)
Pearson, Sir W. D. (Colchester) Seaverns, J. H. Wilson, P. W. (St. Pancras, S.)
Pease, Herbert Pike (Darlington) Seely, Colonel Winfrey, R.
Pirie, Duncan V. Sherwell, Arthur James Wood, T. McKinnon
Ponsonby, Arthur A. W. H. Shipman, Dr. John G. Wortley, Rt. Hon. C. B. Stuart-
Price, Sir Robert J. (Norfolk, E.) Soames, Arthur Wellesley Younger, George
Priestley, Sir W. E. B. (Bradford, E.) Stewart-Smith, D. (Kendal)
Radford, G. H. Straus, B. S. (Mile End) TELLERS FOR THE AYES.—Mr. Joseph Pease and Mr. Fuller.
Rea, Rt. Hon, Russell (Gloucester) Tennant, H. J. (Berwickshire)
Rees, J. D.
NOES.
Abraham, W. (Cork, (N. E.) Jordan, Jeremiah O'Malley, William
Ambrose, Robert Jowett, F. W. O'Neill, Charles
Barnes, G. N. Joyce, Michael Parker, James (Halifax)
Roland, John Kavanagh, Walter M. Philips, John (Longford, S.)
Bowerman, C. W. Keating, M. Power, Patrick Joseph
Clancy, John Joseph Kennedy, Vincent Paul Reddy, M.
Condon, Thomas Joseph Law, Hugh A. (Donegal, W.) Redmond, John E. (Waterford)
Crean, Eugene Lundon, T. Redmond, William (Clare)
Cullinan, J. Lynch, A. (Clare, W.) Richards, T. F. (Wolverhampton, W.)
Delany, William MacNeill, John Gordon Swift Richardson, A.
Dillon, John MacVeagh, Jeremiah (Down, S.) Roche, Augustine (Cork)
Duffy, William J. MacVeigh, Charles (Donegal, E.) Roche, John (Galway, East)
Duncan, C. (Barrow-in-Furness) M'Kean, John Scanlan, Thomas
Esmonde, Sir Thomas Meagher, Michael Scott, A. H. (Ashton-under-Lyne)
Farrell, James Patrick Meehan, Francis E. (Leitrim, N.) Sheehan, Daniel Daniel
Ffrench, Peter Meehan, Patrick A. (Queen's Co.) Sheehy, David
Flavin, Michael Joseph Mooney, J. J. Smyth, Thomas F. (Leitrim, S.)
Flynn, James Christopher Muldoon, John Steadman, W. C.
Gilhooly, James Murnaghan, George Stewart, Halley (Greenock)
Ginnell, L Nannetti, Joseph P. Summerbell, T.
Glover, Thomas Nolan, Joseph Taylor, John W. (Durham)
Gwynn, Stephen Lucius O'Connor, John (Kildare, N.) Thorne, William (West Ham)
Hardie, J. Keir (Merthyr Tydvil) O'Doherty, Philip White, Patrick (Meath, North)
Harrington, Timothy O'Donnell, John (Mayo, S.) Wilson, W. T. (Westhoughton)
Hodge, John O'Donnell, T. (Kerry, W.)
Hogan, Michael O'Dowd, John TELLERS FOR THE NOES.—Mr. Patrick O'Brien and Captain Donelan.
Hudson, Walter O'Grady, J.
Jenkins, J. O'Kelly, James (Roscommon, N.)