HC Deb 05 December 1938 vol 342 cc964-5

Resolution reported, That, for the purpose of any Act of the present Session relating to local loans, it is expedient to authorise the remission of—

  1. (a) arrears of principal and interest due to the Public Works Loan Commissioners in respect of Eyemouth Harbour; and
  2. (b) the unpaid balance of principal and all arrears of interest clue to the said Commissioners in respect of a loan to Cecil Percy Aston."

Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."

8.3 p.m.

Mr. Benson

I should like to put one question to the Financial Secretary as to the rather unusual form the Bill takes. There is a loan by the Public Works Loan Commissioners under the Agricultural Credits Act, 1923. So far as I know, this is the first time I have seen in the Public Works Loan Bill a loan to a private individual under the Agricultural Credits Act which is to be unremitted. I know that the amount is only £108, in the case of Mr. Aston but there may be other larger amounts which have become irrecoverable, and I am rather curious why this specific sum has been treated in this unusual way.

8.5 p.m.

The Financial Secretary to the Treasury (Captain Euan Wallace)

I do not know that I can give the hon. Member very much more information about this particular case than appears in the Memorandum to the Bill. There are two operations which take place in connection with the wiping off of debts under the Public Works Loans Bill. First, there is the more common operation of writing off irrecoverable or supposedly irrecoverable debts from the assets of the Local Loans Fund, and in such cases—there are several dealt with under Clause 2 of the Bill—the debtor is no longer indebted to the Local Loans Fund but becomes indebted to the Exchequer. Secondly, there are certain cases where it has become quite obvious that there is no more money to be recovered, and we have to give up all hope of recovering the debt, and extinguish the liability to the Exchequer as well. Mr. Aston's case is one of the latter. Subject to correction, I do not think this is by any means a rare case. It may not have happened in the last year or so, and, as the hon. Member knows, the Treasury is always rather reluctant to remit a debt unless there is no possibility of collecting it; but the procedure is not without precedent. If the hon. Member wishes any further details I shall be glad to discuss the matter with him.

Question put, and agreed to.