§ 10. Mr. John Grimstonasked the Minister of Town and Country Planning why half the loss, amounting to £6,904, for the half-year ended 31st March, 1949, on the revenue account of Welwyn Garden City Development Corporation has been capitalised instead of being left as a balance on revenue account.
§ Mr. DaltonThe Corporation was established to provide a capital asset in the shape of a new town, and I regard it as proper that the balance of expenditure on general revenue account not covered by grant, should be treated as having been incurred in securing such an asset.
§ Mr. GrimstonWill the right hon. Gentleman examine the amounts which made up the total and see whether he does not think that there has been some watering of capital in the first six months of the Corporation's existence?
§ Mr. DaltonI do not think so. I have taken advice on the matter and I think the hon. Member will agree it is purely a matter of accountancy and presentation. I will look at it again, but I am, so far, satisfied on the point.
§ Sir Herbert WilliamsIs the right hon. Gentleman aware that these corporations borrow money from the Treasury for the purpose of paying interest to the Treasury on the money they originally borrowed?
§ Mr. DaltonIt is not quite so simple as that.