§ (1) The powers conferred upon local authorities by Section five of the Housing, etc., Act, 1923, may be exercised by a county council, and any expenses incurred by a county council there under shall be defrayed as expenses for general county purposes.
1055§ (2) The provisions of Section eight of the Housing, Town Planning, etc., Act, 1919, so far as they relate to the borrowing of money by a county council, shall apply in the case of any money borrowed by a county council for any of the purposes aforesaid.
§ (3) Money borrowed by a county council under any powers conferred on them by the Housing Acts, 1890 to 1923, or this Act, shall not be reckoned as part of the total debt of the council for the purpose of any limitation on borrowing imposed by any Act of Parliament.—[Sir Herbert Nield.]
§ Brought up, and read the First time.
§ Sir HERBERT NIELDI beg to move "That the Clause be read a Second time."
I hope this Clause will be accepted by the Minister, because his Department is fully aware of the abuse this Clause seeks to correct. At the present time, under the existing housing legislation, it is possible for a local authority to adopt the Act, and so oust the jurisdiction of the county council. In cases where county councils have applied for loans for housing, the local authorities have been able to destroy the power of the county councils and yet not use the loans applied for. In other words, instances have come to the notice of the county councils where, unless this power be given to them, the opportunity of getting assistance from the local authorities has been wholly destroyed. There is one more aspect, and that is that the rate of interest at which county councils can borrow is very much lower than the terms at which small local authorities can raise money.
§ Mr. WHEATLEYI propose to accept this Clause.
§ Clause read a second time, and added to the Bill.