HC Deb 06 November 1918 vol 110 cc2184-6

(2) A charge created under the provisions of this Section shall have priority over every other then existing charge and encumbrance affecting the land, whether created under the powers of an Act of Parliament or otherwise.

Mr. PROTHERO

I beg to move, after the word "Section" ["provisions of this Section"], to insert the words "or Section three of this Act."

This is really consequential on a previous Amendment. The charges in Section 3 and in Section 5 are the costs of extinguishing the tithe rent-charge, and thus increasing the value of the land.

Amendment agreed to.

Mr. DUNDAS WHITE

I beg to move, in Sub-section (2), to leave out the words Whether created under the powers of an Act of Parliament or otherwise. It would seem to me sufficient to leave the Clause as it stands, without these words. It gives the new charge priority over every other then existing charge or encumbrance affecting the land. It is not easy to see what is meant by these additional words. In the former state of the section priority was given not only over existing charges but over future charges, but as it has now been limited to the then existing charges, these words seem hardly necessary, and I would like to know whether the right hon. Gentleman has any special object in leaving them in.

Mr. HOLT

I beg to second the Amendment.

Mr. PROTHERO

In the almost precisely analogous case of the Improvement of Lands Acts the charges imposed are given priority, and the principle on which this Bill proceeds is the same. The value is increased by the improvement, or, as in this case, by the extinction of the tithe. All charges and encumbrances gain by that increase in value. The security is improved, and it is only fair that the cost of the operation which so increases the security should be given priority over everything else. We want to retain these words in the Act simply because if you leave them out there is a doubt whether a charge created by an Act of Parliament is an encumbrance to which priority would be given over the charge created under this section. It is not a point of very great importance. The words are included merely to remove all possible doubt.

Amendment, by leave, withdrawn.

Mr. PROTHERO

I beg to move, at the end of Sub-section (2), to insert the words And such a charge shall be a land charge within the meaning of the Land Charges Registration and Searches Act, 1888. This Amendment is merely to ensure registration of the charge, and that due notice is given to anybody dealing with the land, whether by purchase or mortgage. It is, in effect, a drafting Amendment.

Amendment agreed to.

An Amendment stood upon the Paper in the name of Mr. D. White—at the end of Sub-section (2), to insert the words Provided that rates, taxes and assessments shall not be deemed to be charges or encumbrances within the meaning of this Section.

Mr. WHITE

I want to have it made perfectly clear that rates, taxes, and assessments are not to be regarded as charges or encumbrances within the meaning of this Section. It seems to me that there might be a doubt, and I merely want to clear away that doubt. I understand that it is not the intention of the Government that the terms "charges and encumbrances" should include rates and taxes, and I rather fancy that the Amendment which has just been inserted renders this Amendment unnecessary.

Mr. PROTHERO

That is so.

Mr. SPEAKER

Does the hon. Member move?

Mr. WHITE

No, I do not move.

Bill accordingly read the third time, and passed.