HC Deb 19 October 1943 vol 392 cc1314-5
Mr. McKinlay

I beg to move in page 8, line 38, to leave out "reasonably," and to insert "necessarily."

This Clause deals with payment of compensation by an interim development authority for any expenditure incurred or any sums reasonably paid in discharge of any liability. That word "reasonably" to our way of thinking is very dangerous. No two persons will be agreed on what "reasonably" means. We would much rather see the word "necessarily" inserted, because in our view it is much easier to determine what is necessary than what is reasonable.

The Lord Advocate (Mr. J. S. C. Reid)

I think we are all trying to reach the same result, but I am afraid the substitution of "necessarily" for "reasonably" might have awkward consequences. Look at the picture of what is to happen. Someone has made a contract with a contractor which has been rendered abortive by reason of the change in plans, and the compensation that we are here dealing with is the sum which the person has had to pay to the contractor to get out of his bargain. If we say "the sum which a person has reasonably paid to the contractor," he may compromise with the contractor and not go to law about it. If, however, he is given only a sum which it was necessary for him to pay to the contractor, I am afraid he will have to litigate about it, because it is never necessary for you to pay anything to your contractor until, there is a decree out against you. I am therefore afraid that, much though I sympathise with the purpose of my hon. Friend, the substitution of the word "necessarily" for "reasonably" would do more harm than good.

Mr. McKinlay

It is because I think the arrangement would be the other way round and that there would be collusion between the person claiming compensation and the contractor to inflate the amount of the expenditure with a view to compensating both, that I moved the Amendment I am satisfied from my own experience of works which have been cancelled and in dealing with the question of compensation that if the word "reasonably" is left there will be collusion on a large scale.

The Lord Advocate

I do not think there is much difference in the opportunity for collusion. If people want to be dishonest and lay their heads together they can defeat the word "necessarily" as easily as they can the word "reasonably" by putting up a collusive bargain which the local authority do not see through. The local authority can as easily say that a bargain is unreasonable as that it is unnecessary.

Amendment negatived.

Clause ordered to stand part of the Bill.

Clause 8 ordered to stand part of the Bill.