§ 42. Sir John Mellorasked the Minister of Health whether he will introduce legislation to enable local authorities to create reserve funds to make some provision for the consequences of decreased expenditure on maintenance during the war, and for the cost of works suspended?
§ Mr. E. BrownI am not aware of any general desire on the part of local authorities for legislation of the kind suggested by my hon. Friend, and as at present advised I do not contemplate its introduction.
§ Sir J. MellorUnder the present law are not some local authorities being put in a false financial position which may well involve doubling their rates later on?
§ Mr. BrownI do not think so, but if my hon. Friend has any case where there is a special degree of urgency, perhaps he will let me know about it.
§ 43. Sir J. Mellorasked the Minister of Health whether he will indicate the level to which local authorities, adversely affected by war conditions, will be expected to raise their poundage rate before applying for Exchequer assistance to maintain essential services; and whether he will issue a statement showing the previous poundage rate and the subsequent poundage rate in each instance where local authorities have already received such assistance?
§ Mr. BrownThe poundage of the rate to be levied is a matter for consideration in the light of the circumstances in each case, regard being had among other things to the existing level and any increases which may have been made in recent years. It would not be in the public interest to publish the statement asked for in the second part of the Question.
§ Sir J. MellorIn view of the large amount of public money involved in this question, is it not desirable that some rule should be laid down, at any rate for the private information of local authorities, and is it not desirable that local authorities should know where they stand rather than that this should be left to the arbitrary decision in each case of my right hon. Friend's Department?
§ Mr. BrownI do not think that local authority representatives would take that 1580 view. In a number of areas and in others referred to by my hon. Friend where circumstances were similar, no increase in rate poundage was required. We ought to proceed on the facts as disclosed.