§ (1) There shall be charged on and paid out of the Consolidated Fund or the growing produce thereof in every financial year a sum equal to one-half of the net proceeds in each year of the duties on land values under Part I. of this Act (including Mineral Rights Duties).
1339§ (2) The sums so charged shall be carried to a separate account, to be established under regulations made by the Treasury for the purpose, and, subject to such regulations as may be made by the Treasury in respect of accounts, audit, and accumulation of moneys standing to the account, be appropriated for the benefit of local authorities in the United Kingdom in such manner as Parliament may hereafter determine.
§ Mr. HOBHOUSE moved, in Sub-section (1), to leave out the words "in every financial year."
§ Mr. RENWICKI have an Amendment to the next line, but I am afraid that by your previous ruling it would be out of order. Therefore, it is not my intention to move it, but I would like to ask the Financial Secretary for a little further explanation why he wishes to leave out "in every financial year." Under this Clause there is a proposal that half of the net proceeds of the Increment and Undeveloped Land and Reversion Duties shall be paid to the local authorities at the end of every financial year. If you leave out these words, it is very indefinite when the local authorities are going to get any of the proceeds. In the meantime the Exchequer is collecting the taxes of the areas of the local authorities. The local authorities have for many years looked upon these taxes as a source of revenue to them, and not to the State. They have been deprived of them by the State. Therefore it is a serious matter if it is to be left indefinitely as to when they will get any of the proceeds. I am quite aware the proceeds are not likely to be large, as the Government intend to spend more money in valuation than they will probably get; but still, if there is to be any surplus, I do think it ought to be divided every year.
§ Mr. HOBHOUSEIf the hon. Member heard the explanation I gave the hon. Baronet he would understand that exactly the same applies to this, and I think it unnecessary to repeat it.
§ Amendment made.
§ Drafting Amendment also made.