HC Deb 04 May 1939 vol 346 cc2060-1
45. Mr. E. Smith

asked the Prime Minister whether he is aware of the difficult financial position of many local authorities through the continued increase of costs imposed upon them by Parliament, of the altered economic conditions since the Derating Act came into operation, and of the benefits to industry of the provisions and assistance given under the Import Duties Act; and will he take steps to have the question of rating and valuation investigated by a Royal Commission or move to appoint a Select Committee to investigate the matter and the financial position of local authorities?

The Prime Minister (Mr. Chamberlain)

These matters are constantly under review. I am not satisfied that the present time would be suitable for the appointment of a Royal Commission or a Select Committee as suggested by the hon. Member even if it were desirable on other grounds.

Mr. Batey

Is not the Prime Minister aware that when he passed the Derating Act, industry was in a bad way and that to-day it is doing better; and owing to the burden that is placed upon local authorities, can he see his way at least to appoint a Select Committee to go into the question of rating?

The Prime Minister

No, Sir. There is already a Committee which is sitting on the question connected with valuation for the purposes of rating, and I think, at any rate, it would be necessary to hear what that Committee had to say before any other steps were taken.

Mr. Batey

Will not that Committee deal altogether with a different question from that of the burden upon local authorities, which ought to be dealt with?

The Prime Minister

I appreciate the fact that the two points are different, and in that case I think one has a bearing upon the other.

Miss Wilkinson

Is the Prime Minister aware that in distressed areas, where the rates are going up rapidly on cottage property and small shops, there is this enormous burden, while in those areas there are munition firms making enormous profits who are relieved of their rates?

Mr. Magnay

Is the Prime Minister aware that in such places as Gateshead, which is in a distressed area, the financial assistance received from the Treasury is 20 per cent. higher than it was in 1931?

Mr. Batey

Is the Prime Minister aware that, in spite of that, there are huge burdens on the rates?