§ 8.47 p.m.
§ Sir G. COLLINS
I beg to move, in page 35, line 26, to leave out from "may," to "and," in line 30, and to insert:be used by the authority for the purpose of any statutory borrowing power possessed by them subject to the conditions specified in Sub-section (2) of this Section.The object of the Amendments to this Clause is to give local authorities greater freedom to invest money in their equalisation accounts. There must be certain general conditions laid down under which local authorities can invest sums at their disposal in their equalisation accounts, and it is in order to give them greater freedom to make use of that money and at the same time to secure that there shall be some general conditions, which will be agreeable, I have no doubt, to 1800 local authorities, that these Amendments are proposed.
§ Amendment agreed to.
§ Further Amendments made: In page 35, line 30, leave out "applied," and insert "used.
"Leave out lines 33 to 36, and insert:
and an amount equal to the income arising from such investment shall be credited to the account.
(2) The conditions subject to which moneys may be used as mentioned in Sub-section (1) of this Section shall be the following (that is to say):
(a) the moneys so used shall be repaid to the account out of the county or burgh fund within the period, and by methods within, and by which a loan raised under the statutory borrowing power would be repayable:
Provided that the authority shall repay to the account the moneys so used or the the balance hereof for the time being outstanding, as the case may be, and when reiqured for the purposes of the account, and may make such repayment at any time within the period aforesaid and in either case the repayment shall be made out of the aforesaid fund or out of moneys which would have been applicable to the repayment of a loan if raised under the statutory borrowing power;
(b) in the accounts of the county or burgh fund an amount equal to interest (calculated at such rate as may be determined by the authority to be equal as nearly as may be to the rate of interest which would be payable on a loan raised under the statutory borrowing power) on any moneys so used shall be credited to the account and debited to the branch of expenditure for the purpose for which the moneys are so used;
(c) the statutory borrowing power shall be deemed to be exercised by such use as fully in all respects as if a loan of the same amount had been raised in exercise of the power and the provisions of any enactment as to the re-borrowing of sums raised under the statutory borrowing power shall apply accordingly."—[Sir G. Collins.]