Clause 40.—(EFFECT OF PART III ON UNEXPENDED BALANCE OF ESTAB LISHED DEVELOPMENT VALUE.) (Hansard, 13 July 1954)

§ The Attorney-General

I beg to move, in page 44, line 23, to leave out from "date," to the end of line 47, and to insert: (in this subsection referred to as ' the relevant balance ') then, in determining whether that land or any part thereof has an unexpended balance of established development value at any subsequent time— (i) for the purposes of section thirty-five of this Act and, if the relevant balance was, or in the appropriate circumstances would have been, disregarded for the said purposes, or if immediately after the acquisition or sale no person other than the acquiring authority is entitled to any interest in 396 the land other than an excepted interest, for all other purposes of this Act, the original unexpended balance of established development value of that land shall be treated as having been extinguished immediately before that subsequent time; (ii) subject to the preceding paragraph, it immediately after the acquisition or sale some other person is entitled as aforesaid, there shall be deducted from the said original balance the aggregate of any amount by which the relevant balance was, or in the appropriate circumstances would have been treated as reduced for the purposes of the said section thirty-five, and any amount which was, or in the appropriate circumstances would have been, included by virtue of that section in the compensation payable on compulsory acquisition, and the original balance of that land or that part thereof shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time: Provided that in the event of a subsequent compulsory acquisition of that other person's interest, being a compulsory acquisition to which this Part of this Act applies, the said section thirty-five shall have effect for the purposes of assessing the compensation payable as if this subsection had not been enacted. (2) Where—

(a) in connection with a compulsory acquisition to which this Part of this Act applies an amount by way of compensation such as is mentioned in paragraph (a) of subsection (1) of the last preceding section was paid in respect of an interest in any land other than the land to which the acquisition related; or
(b) on such a sale as is mentioned in paragraph (b) of the preceding subsection, the price paid included an amount in respect of damage sustained by an interest in land other than, but held with, the land to which the sale related, being damage sustained by reason of the severance of the land or by reason that the interest in that other land was injuriously affected, and the said amount exceeds what was, or in the appropriate circumstances would have been, the loss of immediate value of that interest as defined in the last preceding section, then, for the purpose of determining whether that other land or any part thereof has an unexpended balance of established development value at any subsequent time, there shall be deducted from the original unexpended balance of established development value of that other land an amount equal to the excess, or so much thereof as was, or in the appropriate circumstances would have been, calculated by reference to that balance, and the original balance of that land or that part thereof shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time.

(3) If in a case such as is mentioned in paragraph (a) or (b) of the last preceding subsection so much, if any, of the amount mentioned in that paragraph as was, or in the appropriate circumstances would have been, attributable to the loss of immediate value 397 of the interest in question was or would have been less than the depreciation in restricted value of that interest within the meaning of subsection (6) of the last preceding section, then (whether or not the land in question or any part thereof would apart from the provisions of this subsection have had an original unexpended balance of established development value) for the purpose of determining whether at any time after the acquisition or sale the land in question or any part thereof has such a balance, but for no other purpose, it shall be deemed that immediately after the commencement of this Act a claim holding subsisted with an area consisting of the land in question and a value equal to seven-eighths of the amount of the difference. This Amendment carries further the process which I have just indicated. It has two purposes. The first is to correct certain errors in the present Clause 40, and the second, and more important, is to include in the Clause the substance of what I call the bookkeeping provisions at present included in paragraphs 8 and 9 of the Eighth Schedule. If necessary I can explain the nature of the improvements, but I do not otherwise wish to occupy the time of the House. The provisions are simply expressed more happily in the form adopted in the Amendment.

Amendment agreed to.