§ (1) Where any rates in respect of an industrial hereditament occupied by a tenant are, whether by agreement or otherwise, payable by the landlord, then, so long as under any contract made before the commencement of this Act there is payable by the tenant in respect of the hereditament rent inclusive of those rates, the landlord shall, as from the appointed day, be liable to pay to the tenant or allow by way of deduction from his rent a sum equal to the difference between every amount payable by the landlord by way of those rates, after deducting any allowance, commission, abatement, or deduction granted to him by the rating authority, and the amount which would have been so payable at the rate in the pound current for the time being if the rateable value of the hereditament had been equivalent to the net annual value thereof.
§ (2) In the case of any industrial hereditament which is for the time being included in one assessment with other hereditaments the amount of the sums payable under this Section by the landlord in respect of any rate or instalment of a rate becoming due before the hereditament is separately assessed shall, on the application either of the landlord or of the tenant, he certified by the rating authority, and their certificate shall be final and conclusive.—[Sir K. Wood.]
§ Brought up, and read the First time.
§ The PARLIAMENTARY-SECRETARY to the MINISTRY of HEALTH (Sir Kingsley Wood)I beg to move, "That the Clause be read a Second time."
This new Clause is designed to secure that the rate relief given to industrial premises shall, in the circumstances set out in the Clause, inure to the benefit of the tenant. For instance, there are premises which are let at an inclusive rental which is generally arrived at in order to cover, first, a reasonable rent, then an annual amount of rates which might be expected to be chargeable on the premises during the term of the lease or agreement. Naturally the rate charge would be liable to fluctuations due to variations of rate poundage, or to re-assessment, or to both those things. In 240 the ordinary way of a contract of this kind they go up or down in accordance with the circumstances of the case, and in most cases no doubt the variations are taken into account by the parties to the particular contract or agreement; but in this case the Government have taken the view that inasmuch as the amount or rate charge is to be so drastically reduced by the action of Parliament, it is clearly a case for intervention so as to secure a reduction of the inclusive rental in such circumstances.
Therefore, the Clause provides in effect that the landlord shall give credit for, or allow to be deducted from the inclusive rent, a sum equivalent to the 75 per cent. remission which the landlord, as ratepayer, will secure under the Bill. This, of course, refers only to the part of the premises used for industrial purposes, the rates on which are remitted under the Government scheme. On non-industrial parts of the premises, if any such there be, the rates will continue to be payable in full and thus there will be nothing in that respect to be passed on to the tenant. The amount of the relief set forth in this Clause is to be measured by taking the difference between the rate-charge—at the rate in the £ for the time being current—assessed on the rateable value of the hereditament, as it will be calculated under the Bill, and the rate-charge as it would have been—at the same rate in the £—if the rateable value of the industrial part had been its full net annual value as apportioned and shown in the valuation list instead of one-quarter thereof. The general effect of the Clause is that the landlord, in the circumstances set out in the draft on the Paper, has to allow as a deduction to the tenant the remission on the rates paid on the part of the premises used for industrial purposes. I believe the Clause will commend itself to the House.
§ Mr. ROY BIRDI wish to get a clear statement as to whether or not this Clause covers "room and power" companies. There are a great many of these companies owning "room and power" sheds who have not one tenant, but, in many cases a large number of tenants, these tenants paying an inclusive rent which is not only in respect of rent and rates, but includes power as well. I do not think that this Clause covers these cases. I should like to know whether 241 it is the intention of the right hon. Gentleman that the Clause should cover "room and power" sheds, and if he means that it should cover them, I hope he will consult his legal advisers and, if necessary, make the appropriate amendment in another place.
§ Sir K. WOODMy right hon. Friend is advised that the cases to which the hon. Member refers will come under the Clause.
§ Question put, and agreed to.
§ Clause read a Second time, and added to the Bill.