§ 32. Mr. A. M. SAMUELasked why the Local Authorities (Assisted Housing Schemes) Regulations, 1919, provide that the estimated annual average loss over a period of years, less the annual produce of 1d. rate, shall be the Exchequer subsidy, notwithstanding the fact that Sec- 424 tion 7, Sub-section (2), paragraph (a), of the Housing, Town Planning, etc., Act of 1919, distinctly states that the loss is to be determined on the basis of the estimated annual (not average) loss, subject to a deduction therefrom of a sum not exceeding the estimated annual produce of a rate of 1d.; whether he is aware that the insertion of the word "average" in these Regulations violates the explicit wording of Section 7, Sub-section (2), paragraph (a), of the Act; and whether he will explain how an urban district council can estimate in advance the loss over a period, of years in face of the fact that it is impossible for an urban district council to know, for even one year in advance, what the assessments, rates, rents, outgoings, and other necessary bases of calculation will be, and why the Regulations of 1919 do not provide for an adjustment of the Exchequer subsidy when the loss in any year is such that a local authority has to-contribute more than the produce of a rate of 1d. in the £.
§ Dr. ADDISONI am advised that the Regulation to which the hon. Member refers in no way violates the provisions of the Act. Section 7 of the Act provides that the amount of the Exchequer subsidy is to be determined on the basis of the estimated annual loss, in accordance with Regulations to be made. The Regulations provide that periodical estimates of the loss shall be framed and in order that the subsidy may be paid in equal annual sums during the period covered by the estimate (subject only to variations in the proceeds of the 1d. rate) the Regulations provide that the amount to be paid by the Exchequer each year shall be the average annual loss. This will make no difference in the amount paid to the authority during the term of years in question.
I have no reason to believe that, where the schemes have been completed and the houses occupied, urban district councils will find difficulty in estimating the loss likely to be incurred, and until the schemes have been completed the actual loss in excess of the proceeds of the 1d. rate will be paid by the Exchequer.
§ Mr. SAMUELIf the urban district councils make mistakes from time to time owing to the difficulty of forecasting over a period of years will the Exchequer subsidy be adjusted so that these councils will not make a loss?
§ Dr. ADDISONOf course I cannot make any promise that would amount to a premium on mistakes, but we will do our best to be lenient.