HC Deb 10 July 1939 vol 349 cc1994-6

"(1) The provision of air-raid shelter shall be deemed to be an improvement authorised by the Settled Land Act, 1925, and mentioned in Part II of the Third Schedule to that Act.

(2)Any liquidator, trustee in bankruptcy, receiver, committee or other person acting in a fiduciary capacity who is, as such, the occupier of any factory premises, the owner of any mine or the owner of any commercial building or of any building or block of buildings to which Section thirty of this Act applies shall, for the purpose of providing air-raid shelter or complying with any obligation imposed on him by or under any of the provisions of this Act, have power (in addition to any other powers enabling him in that behalf) —

  1. (a) to utilise any moneys in his hands in his capacity as liquidator, trustee, receiver committee or otherwise as aforesaid;
  2. (b) to raise money by the sale or mortgage of any property vested in him or under his control in that capacity,
and any money reasonably expended by him for the said purpose shall be treated as part of his expenses incurred in that capacity and shall be allowed in account accordingly.

(3)Where the owner of any commercial building or any such building or block of buildings as aforesaid is a mortgagee, he shall be entitled to add to his security any money reasonably expended by him for the purpose of providing air-raid shelter in connection with the building or block or of complying with any obligation imposed on him by or under this Act as owner of the building or block."

1.34 a.m.

Sir J. Anderson

I beg to move, "That this House doth agree with the Lords in the said Amendment."

This matter is, of course, of a somewhat technical nature. The House will not expect from me more than a very general explanation. The object of this Amendment is to eliminate doubt as to the powers of trustees of land, or other persons having fiduciary powers of management of land, in regard to the provision of ar-raid shelters. The first Subsection deals with the ordinary case of trustees under settlements, and I am advised that the effect is twofold: In the first place, by the inclusion of the provision of air-raid shelter among improvements authorised by the Settled Land Act, 1925, the trustees are authorised to apply capital moneys arising out of the settlement and also to borrow money for the purpose of providing shelter on the security of the settled land. In the second place, the reference to Part 2 of the Third Schedule to the Settled Land Act has, I am advised, this effect, that the trustees of settlements will be enabled, and the court will be in the position, to require in proper cases that the cost of the provision of air-raid shelter shall be recouped by instalments out of income.

The second Sub-section confers corresponding powers of applying money or of raising money by mortgage on certain persons whose position is to some extent analogous to that of the trustees who are dealt with in Sub-section (1)—such persons, for example, as liquidators, trustees in bankruptcy, or receivers. It is clearly desirable that these persons should be endowed with the like powers, and it is not clear, I am advised, that that would be so under the law as it stands unless express provision were made in this Sub-section.

Sub-section (3) deals with an entirely different point. This Section makes it clear that a mortgagee, treated as the owner of a commercial building or block of flats, may add to his security an amount reasonably spent by him for his obligations under the Act.

1.38 a.m.

Mr. Gallacher

I want to ask one question. Will the right hon. Gentleman explain the words: The provision of air-raid shelter shall be deemed to be an improvement authorised by the Settled Land Act 1925. Will he explain the words "deemed to be an improvement," in relation to improvements in a landlord's property for which the tenants have to pay?

The Attorney-General (Sir Donald Somervell)

My right hon. Friend has explained that the effect is to enable trustees who may otherwise have no powers to raise money, either by way of a charge on property or from capital, to do so, and this is effected by the words: The provision of air-raid shelter shall be deemed to be an improvement. It is so deemed for the purpose of this Sub-section, and that is the inference to be drawn from it.

Mr. Gallacher

May I ask the Attorney-General whether, if a landlord wanted to raise a mortgage on his property, this could be deemed to be an improvement on which he could increase the character of his mortgage, although it is an improvement for which the tenants have had to pay? Is not that the case?

The Attorney-General

I have done my best to explain why these words are put in. I cannot go on making speeches if the hon. Gentleman did not follow my explanation.

Mr. McKie

Does the hon. Member for West Fife (Mr. Gallacher) think the landlord is the only person who is presumed to have an obligation?

Subsequent Lords Amendments to page 62, line 8, agreed to.

Lords Amendment: In page 62, line 8, at the end, insert: