42. Captain HERBERTasked the Minister of Agriculture what is the aggregate amount of the annual ground rents in Regent Street; and what was the amount of arrears on 1st October, 1933?
§ Mr. ELLIOTThe aggregate amount of the annual ground rents in Regent Street is £522,830. The amount of arrears on 1st October, 1933, was £101,167, of which £17,813 has been paid since that date.
Captain HERBERTIs it not a fact that a considerable proportion of tenants have paid only a small amount, or a proportionate amount, of their rent during the past two years, and no action has been taken against them; and is it not a further fact that the Crown Commissioners dare not take action against them for fear of turning out well-established tenants whom they could not possibly replace at the present rents?
§ Mr. H. WILLIAMSIs not this a case against the nationalisation of land?
43. Captain HERBERTasked the Minister of Agriculture if he is aware that the rack rents obtainable for Crown property in Regent Street are, in a large number of instances, barely sufficient to cover the ground rent; and if this cover is considered a sufficient security for the capital value of this class of property?
§ Mr. ELLIOTRack rental values of business premises vary with the fluctuations of trade, and I am aware that in Regent Street as elsewhere the rack 563 rents obtainable for certain premises at the present time are much lower than were contemplated at the time when the leases were granted. If this were regarded as a permanent condition the security for the ground rents would be inadequate, but I have no reason to believe that, taken over a term of years, the ground rents in Regent Street will not be found to be fully secured.
Captain HERBERTIs it not a generally accepted principle of good estate management that the rack rent should afford two and a-half times cover of the ground rent?
§ Mr. ELLIOTYou have to take the rough with the smooth in these matters and average over a period of years.
Captain HERBERTBut in this case do not the Crown Commissioners take all the smooth and the ground renters get all the rough?
§ Mr. TH0RNEWill the right hon. Gentleman make representations to the Government that there is an easy way of raising millions of money by taxing ground values?